Financial Results for the Nine Months Ended
November 30, 2020

AEON DELIGHT CO., LTD.
January 13, 2021

Contents

1Impact of COVID-19 and Current Trends

2

Financial Report for 3Q of FY2/21

3

Initiatives for 4Q Onwards©2021 AEON Delight All Rights Reserved2Impact of the Spread of COVID-19

The negative impact of COVID-19 on operating income
for the nine months period is within the initial projection.

Assuming that the impact of partial closures and temporary closures of ourcustomers' facilities will continue through the first half of the year,
we estimate the -1.5 billion yen impact on full-year operating income

The impact of COVID-19 on operating income for nine months period

was about-1.3 billion yen.
©2021 AEON Delight All Rights Reserved 3

Current Trends – Measures for Achieving the FY2/21 Forecast (Sales growth)
IssuesMeasures●New Standard for Facility Management•••

Ideas for improving ventilation
A new standard for cleaning (prevention of COVID-19)
More sales of epidemic prevention materials● Facilities Management Business

Sales growth••Expansion of the use of open network systems
Increase sales of freezer showcases that do not useFreon● Security Business•

Ideas for the replacement of security cameras● Construction Work Business••

Activities concerning construction projects not yet started
Construction projects for environmental measures suchas installing electric vehicle charging stations©2021 AEON Delight All Rights Reserved4Current Trends – Measures for Achieving the FY2/21 Forecast (Improving profitability)

IssuesMeasures● Improve profitability of the three building maintenancebusinesses (Facilities management, security, cleaning)・ Cut the cost of sales by using fewer suppliers and purchasingitems at suitable prices

Improvingprofitability

・ Shift to area management based on patrol-type management (forFacilities management)
・ Improve performance of contracts with low profitability (for Facilities
management, Cleaning services)● Hold down SG&A expenses
・Use teleworking, remote meetings and other new formats for work tolower transportation and other expenses©2021 AEON Delight All Rights Reserved5

Current Trends – Quarterly Trends
Quarterly sales recovered to the same level as the previous year and operating
income increased through reexamining and strengthening of measures【YoY Changes】
売上高
Net sales

営業利益
Operating income

105.8%

110.0%
100.0%

99.3%

97.2%
93.0%

90.0%
90.9%
84.4%

80.0%
70.0%
1Q
第1四半期

2Q
第2四半期

3Q
第3四半期

©2021 AEON Delight All Rights Reserved6Current Trends – Consolidated Monthly Trends in 3Q

Monthly trends also show a recovery toward 4Q.

【YoY Changes】
Net sales
売上高110.0%

103.9%

105.0%
101.2%

100.0%
95.0%

93.2%

90.0%
9月
September

October
10月* Monthly sales and YoY changes are calculated based on management accounting figures.

11月
November©2021 AEON Delight All Rights Reserved

7

Contents

1

Impact of COVID-19 and Current Trends

2

Financial Report for 3Q of FY2/213

Initiatives for 4Q Onwards©2021 AEON Delight All Rights Reserved

8Consolidated Statement of Income
Decline in sales and profits due to partial closures or temporary closures of customers’ facilities, andrequests to refrain from events and going out by the Japanese government to prevent the spread of COVID-19.
(100 million yen)

FY2/20 3Q(Ratio to sales)

FY2/21 3Q(Ratio to sales)

Net sales

2,326 （100.0%）

Gross profit

290 （12.5%）

SG&A expenses

169

Operating income

Difference

Percentagechange2,243 （100.0%）▲8296.5%275（12.3%）▲1495.0%（7.3%）

163（7.3%）▲596.7%121（5.2%）

112（5.0%）▲892.6%

Ordinary income

121（5.2%）

112（5.0%）▲992.3%

Net income attributableto owners of parent

73（3.2%）63（2.8%）▲1085.8%©2021 AEON Delight All Rights Reserved

9[Reference] Income Statement excluding former KAJITAKU* (Same Scale Comparison)(100 million yen)

[Reference]
FY2/20 3Q(Ratio to sales)

FY2/21 3Q(Ratio to sales)

Difference

Percentagechange2,289 （100.0%）

2,218 （100.0%）▲7096.9%

Gross profit

293 （12.8%）278 （12.5%）▲1594.7%

SG&A expenses

163（7.1%）

158（7.1%）▲497.1%

Operating income

130（5.7%）

119（5.4%）▲1091.8%

Net sales*Income statement excluding the results of Current Aqutia Corporation (successor company to the Housekeeping SupportBusiness) and KJS Corporation (formerly KAJITAKU, changed its name as of March 1, 2020).

©2021 AEON Delight All Rights Reserved 10Sales by Segment
Material-related sales grew thanks to increased orders for epidemic prevention materials.
(100 million yen)

Percentage change

FY2/20 3Q

FY2/21 3Q

Facilities management44243899.0%

Security services

333

329

99.0%

465

460

99.0%

320

310

96.9%

Materials/supplies
sourcing services

385

396

102.8%

Vending machineservices

237

190

80.2%

142

117

82.9%

105

92

88.1%

Total

2,326

2,243

96.5%

(Reference)
Excluding KAJITAKU

2,289

2,218

96.9%

Cleaning services
Construction work

Support services(Reference)
Excluding KAJITAKU©2021 AEON Delight All Rights Reserved 11

Profit by Segment
In security services, we improved profitability by optimizing unit prices and systemizing entrance andexit management and closing operations.
In construction work, improve profitability by implementing cost-cutting measures.
(100 million yen)

FY2/20 3Q

FY2/21 3Q

Percentage change

Facilities management

40.3

39.1

97.0%

Security services

22.0

23.8

108.1%

Cleaning services

52.9

53.4

100.9%

Construction work

28.4

28.7

101.3%

Materials/supplies
sourcing services

19.4

18.5

95.1%

Vending machineservices

9.4

5.6

59.4%

Support services

4.4▲1.7-(Reference)
Excluding KAJITAKU

13.85.842.3%

Total

177.1

167.6

94.6%

(Reference)
Excluding KAJITAKU

186.5

175.2

93.9%
©2021 AEON Delight All Rights Reserved

12Consolidated Balance Sheet(100 million yen)

AssetsFY2/20FY2/21
3Q

Difference

Current assets

1,123

1,055

▲67

Tangible fixedassets

9698

2Intangible
fixed assets

7167▲4Investments,etc.

7676▲0Fixed assets

245243▲1Total assets

1,369

1,299

▲69

FY2/20FY2/21
3Q

Difference

Current
liabilities

488431▲57Fixedliabilities

6744▲23556475▲80

Shareholder’sequity789812

23

Total net assets

812823

10

Total liabilities
and net assets

1,369

1,299

▲69Liabilities andnet assets

Totalliabilities©2021 AEON Delight All Rights Reserved

13

Major Initiatives in FY2/21 3Q ① Response to COVID-19 Infections<Safety and Security>
We were working to create facilities adapting to post-COVID-19 era with FM
New Standard, while people's standards for safety and security change

4 themes for FM New standards① Establish scientifically based cleaning methods
for sanitary environment (New StandardCleaning)② Efficient ventilation while maintaining comfort③ Development and introduction of contactless
services④ Raise awareness and knowledge of epidemic
prevention among store employees
Toward a New Facility Management Standard in the post-COVID-19
era, we released its COVID-19 response video©2021 AEON Delight All Rights Reserved

14

Major Initiatives in FY2/21 3Q ① Response to COVID-19 Infections<Safety and Security>

More than 1,000 experts trained in infection control cleaning● We formulated an original training program
based on the latest research trends ininfection control to promote New Standard
Cleaning (Basic/Standard/Advancedcourses)●1,100staffs have completed thestandard course with the expertise ininfection control cleaning(as of November 30, 2020)
New Standard Cleaning service began in September. The work is carriedout by the “Sanitation and Cleaning Specialists" that has completed its
own educational program©2021 AEON Delight All Rights Reserved

15

Major Initiatives in FY2/21 3Q ① Response to COVID-19 Infections<Safety and Security>

Anti-bacterial and virus film placed on 24,000 vending machines toprevent infections due to physical contact[Locations of anti-bacterial/virus film]
Selection buttons/screens, coin input and return slots,
payment return levers, product pick-up area; vendingmachines also use SIAA-certified products* SIAA: The Society of International sustaining growth for Antimicrobial Articles (SIAA) certifies products that meet requirements for
antimicrobial properties, safety and suitability.
©2021 AEON Delight All Rights Reserved16

Major Initiatives in FY2/21 3Q ① Response to COVID-19 Infections<Safety and Security>
Provide many methods for the prevention of contact infections in game arcades, movie theaters,
financial institutions and other locations[Anti-bacterial/virus coatings for game/amusement equipment]

Spray/application of safety coatings on
individual medal game machines

Application of seals that certify completionof safety coating procedures

Photo shows a Molly Fantasy indoor theme park operated by AEON Fantasy Co.,Ltd©2021 AEON Delight All Rights Reserved

17

Major Initiatives in FY2/21 3Q ② Technology Contests<Safety and Security>
Activities to upgrade specialized skills are continuing even during the COVID-19 crisis.
We held the Second AEON Delight Technology Contest.

[Photos of contests]

From left:
The facilities management contest was held at the AEON Delight Academy – Nagahama (November 11)
The cleaning services contest was held at locations in Japan and other countries linked by TV conferencing (November 19)
The security services contest was held at locations in Japan and other countries linked by TV conferencing (November 20)

These events allowed AEON Delight companies as well as partner companies (security) in Japanand other countries to share their technologies and explain activities that have been successful.

Technology skills x People skills = Specialists©2021 AEON Delight All Rights Reserved18

Major Initiatives in FY2/21 3Q ③ Speed Up Business Model Reforms<Labor shortage>

Build a business model combining human technologies with pure technologies
in order to provide services that can constantly upgrade customer satisfaction.

Tested and confirmed in Hokkaido.
● A demonstration trial for the automatedmanagement of store facilities by using
numerous systems and sensors at a model
store has confirmed the effectiveness of thisbusiness model.
● Started operating a Customer Support Center forthe development of services that originate withcustomers’ needs.
Decided to start automated services at the model store inNovember
Plan to expand the use of automated services to all areasof Hokkaido

The new Customer Support Center••Use customer information and feedback to create proposals withvalue for customers
Remote control/centralized surveillance of “movements” withinstores and other locations

Plan to use the test results to propose the useof automated services to major customers inother regions of Japan©2021 AEON Delight All Rights Reserved

19

Major Initiatives in FY2/21 3Q ④ Launch of Electricity Supply Service<Environment>

Started selling safe electricity at low prices to reduce energy costs at facilities

Securing routes to procure electricity at competitive prices
Started proposals for switching electricity to commercial facilities, office buildings, andmedical facilities in September.

Started providing electricity supply services at several facilities.
Reduce facility energy costs while improving equipment operation by facility
managers.

In the medium-to long-term, we will develop a system that enables proposals forthe use of renewable energy, and aim to minimize the environmental impact offacilities and contribute to the realization of a carbon-free society.
©2021 AEON Delight All Rights Reserved

20

Major Initiatives in FY2/21 3Q ⑤ Expansion of New Contracts
Started providing services at a wide variety of facilities<Example>
Head office of Bank of Iwate(Facilities management)

The Westin Tokyo (Facilities management)

Administrative bldg. of Osaka Nanko Truck
Terminal (Comprehensive management)

Rakuten Seimei Park Miyagi (Facilities management)

Oriental Suites Airport Osaka Rinku(Facilities management/Cleaning services)©2021 AEON Delight All Rights Reserved21

Major Initiatives in FY2/21 3Q ⑥ Business Expansion in Asia
In overseas business, sales were 102.6% YoY, operating income was 98.1% YoY(*)
Overseas Business: Net Sales / Operating Income (100 million yen)

(Net sales)(Operating income)

China

Malaysia

VietnamIndonesia

Operating income

160

16142.6

139.1
120

11.6

11.4

1280

840

400

FY2/20 3Q* Figures are simple totals of results of operating companies.

FY2/21 3Q©2021 AEON Delight All Rights Reserved

22

Contents

1

Impact of COVID-19 and Current Trends

2

Financial Report for 3Q of FY2/21

3

Initiatives for 4Q Onwards©2021 AEON Delight All Rights Reserved

23Reformed the Sales Structure to Expand Market Share

Aiming to increase market share with a customer-oriented sales structure＜New sales structure (as of Dec. 1)>
Sales Management

Appointment of Director and Executive
Vice President to promote companywide sales structural reform

Corporate Sales
Division

Customer Success
Division

AEON Group Sales
Division

Specialize in developing
new customers

Responsible for accountmanagement of existingcustomers and contributes totheir further growth (customersuccess)Responsible for expanding
market share in the AEON Group

Aim to further expand market share by strengthening the structure for new customer development
and assigning account managers to existing customers©2021 AEON Delight All Rights Reserved24

AEON Delight Group Reorganization Progress
Promoted group reorganization to realize Aeon Delight Vision 2025 with theseobjectives: ① strengthen governance, ② improve capital productivity, and③ clarify the functions and roles of each company■ December 2020
● Approved the absorption by AEON Delight of KJS Corporation (formerly KAJITAKU), which operates astore support business, on February 28, 2021 (tentative).
Withdrawal from the smart phone printing business and the picture palette business by the end of 2020.
AEON Delight will operate the copier business until the completion of the last contract for copiers currently
in use (2023).
● Approved the absorption by AEON Delight of U-COM Co., Ltd., which operates a design and interior
decoration business for stores, on March 1, 2021 (tentative).
This merger will strengthen the construction business by eliminating redundant activities and consolidating
resources (personnel engaged in design and other creative tasks).
● Liquidation of General Services Inc. (to be completed in April 2021 or afterward)
The liquidation of this company reflects the growth potential of the operations of General Services, which has
many accomplishments as a consulting firm, and the outlook for synergies between these operations withother businesses of the AEON Delight Group. This step will also give AEON Delight expertise concerning
consulting sales and services involving large-scale customers.

©2021 AEON Delight All Rights Reserved25

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◇ 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.
(Securities Code: 9787)

IR Contact : Emiko IshiiDelight Communication Department
TEL 03-6840-5712
Please contact us on our website.
https://www.aeondelight.co.jp

Based on information available up to the date of publication (January 13, 2021)
These forecasts have been prepared and are subject to change due to various factors going forward.