Financial Results for the Fiscal Year Ended February 28, 2023

AEON DELIGHT CO., LTD.
Kazumasa Hamada, President and CEO, Group CEOApril 11, 2023

Contents

1

Financial Report for FY2/23

2

Initiatives for FY2/24©2023 AEON Delight All Rights Reserved2

Consolidated Statement of Income
Sales increased due to expansion of market share within existing customers, new customer
acquisition, and expansion of contracts for various types of construction projects.
operating income and ordinary income increased YoY

The impact of COVID-19 and the Ukraine crisis on operating income was -1.1 billion yen, exceeding the initial forecast (-0.8 billion yen).
(100 million yen)
Percentage
FY2/22 (Ratio to sales)
FY2/23 (Ratio to sales)
Vs. FY2/20
DifferencechangeNet sales

2,837[3,176](100.0%)3,037[3,392](100.0%)

199
[215]

107.0%[106.8%]111.4%[109.9%]Gross profit394(13.9%)

414(13.6%)

19

104.9%

107.4%

SG&A expenses

237(8.4%)

256(8.4%)

18

107.8%

113.5%

Operating income

157(5.5%)

158(5.2%)

0.8

100.5%

98.8%

Ordinary income

157(5.6%)

160(5.3%)

2.1

101.4%

100.4%Net income
attributable toowners of parent

106(3.8%)

101(3.3%)

▲5.1

95.2%

108.6%[Former Revenue
Recognition Standard]©2023 AEON Delight All Rights Reserved3Quarterly Trends
In FY2/2023, although the performance for the first half struggled, sales and profits
increased significantly in the second half due to new contracts and energy-saving-related
construction in line with rising energy costs.
[Year-on-year change]

Net売上sales

150%

90%

100.9%

100.6%

115.3%

128.7%

112.3%

88.0%
70.6%

70%
50%

income123.1%

130%
110%Operating
営業利益

Q1
第1四半期

Q2
第2四半期

Q3
第3四半期

Q4
第4四半期

©2023 AEON Delight All Rights Reserved

4Sales by Segment
Sales increased in all 7 businesses YoY. Compared to FY2/20, sales increased in 5 businesses
excluding vending machine services and support services businesses.
(100 million yen)
FY2/22

FY2/23

PercentagechangeVs. FY2/20

Facilities management

615
[615]

647
[646]

105.3%[105.1%]111.2%[111.0%]

Security services

472

494

104.7%

110.8%

Cleaning services

669

683

102.1%

109.6%

Construction work

430

520

121.1%

124.5%

396
[564]

415
[596]

104.8%[105.6%]116.7%[116.7%][Former Revenue
Recognition Standard]

93[263]94[269]

101.4%[102.2%]84.9%[85.4%]

Support services

160

180

112.6%

96.3%

2,837
[3,176]

3,037[3,392]107.0%[106.8%]111.4%[109.9%][Former Revenue
Recognition Standard]

Materials/supplies
sourcing services[Former Revenue
Recognition Standard]

Vending machine
Services

Total[Former Revenue
Recognition Standard]©2023 AEON Delight All Rights Reserved5

Profit by Segment
Profits increased in 4 businesses and decreased in 3 businesses.

The major factors are as follows.
Security services：Decrease in orders for safety cameras, Cleaning services：Decrease in orders for alcohol-disinfecting cleaning,
Materials/supplies sourcing services：Increase in purchase cost
Vs. (100 million yen)
Percentage change
FY2/22
FY2/23
FY2/20

Facilities
management

54.9

58.1

105.7%

109.8%

Security services

34.3

32.7

95.5%

108.0%

Cleaning services

81.0

70.1

86.5%

100.7%

Construction work

35.8

40.8

113.9%

106.9%

Materials/supplies
sourcing services

25.6

19.9

78.1%

80.3%

Vending machineservices

6.0

10.8

178.0%

77.6%

Support services

4.4

4.6

104.9%

111.2%

Total

242.3

237.3

97.9%

101.3%©2023 AEON Delight All Rights Reserved

6Consolidated Balance Sheet(100 million yen)

AssetsFY2/22

FY2/23Difference

Liabilities andnet assets

FY2/22

FY2/23Difference

Current assets

1,210

1,295

85

Current
liabilities

43848445

Tangible fixedassets

7064▲5Fixedliabilities

3528▲7Intangible fixed
assets

5663

7474

512

37

Investments,
etc.

91

82

▲8Shareholder’sequity

929

959

30

Fixed assets218

210▲7Total net assets

95499339

Total assets

1,428

1,506

77

Total liabilities andnet assets

1,428

1,506

77

Totalliabilities©2023 AEON Delight All Rights Reserved

7

Consolidated Statement of Cash Flows(100 million yen)
FY2/22
Cash flows fromoperating activities

125

Cash flows frominvesting activities▲3

Cash flows fromfinancing activities
Cash and cash
equivalents at theend of year

FY2/23Difference

88

▲37

(100 million yen)

150

Operating
営業ＣＦ
CF

Investing
投資ＣＦCF

Financing
財務ＣＦCF

10050▲45675▲107▲61599▲103▲16▲750(50)
(100)
(150)

FY2/22

FY2/23©2023 AEON Delight All Rights Reserved8

Achievements in FY2023 and Issues for FY2024
Basicpolicies

ResultsIssues for FY2024

Customeroriented
management

・Expanded market share among existing customers
by strengthening account-based marketing・Contribution to energy cost reduction
・Introduced power visualization tools to 171
facilities

・Further strengthen account management
・Strengthen response to rising energy costs
・Strengthen Construction Work business to meetthe growing needs of customers

Promotion ofDX• Started using AD platforms to improve theefficiency of sales activities and the quality ofwork.
• Reduced staffing at a total of 95 facilities
nationwide through the deployment of areamanagement, securing 52 personnel resources• Improved profitability at facilities with labor saving

・Promote use of AD platforms
・Accomplishment of “area management”
and make further DX to improve productivity

Group
Management

・Steadily expanded its business in China
・Business in ASEAN recovered due to economic
recovery from the COVID-19 crisis.

・Recovery in the performance of domestic
subsidiaries, which remained sluggish partly
due to the impact of the global situation suchas COVID-19 and the Ukrainian crisis©2023 AEON Delight All Rights Reserved9Medium-term Management Plan: Progress of KPIs (Key Performance Indicators)
Delay of 1 to 2 years in realizing the effects of some measures, partly due to the impact of the situation
exceeding expectations (e.g., COVID-19 and Ukraine crises)
KPI (End-FY2/24)

End-FY2/23

End-FY2/22

63.4%：36.6%*

64.4%：35.6%

Operating margin of 6.0%*. Maintain ROE level of 12%

Operating income margin: 4.7%*

Operating income margin: 5.0%

(full year) through improvement of operating margin.

ROE: 10.5％

ROE: 11.7%

Number of facilities with area management introduced:

273 facilities

178 facilities

167staffs

115 staffs

Continued improving businessprocesses in headquarter

Began improving businessprocesses in the head officedivisions54.5 billion yen*

52.0 billion yen

9.8％*

7.8%

Conntinued providing support
from our finance and accounting
department for all domestic groupcompanies

Started supporting share-based

Basic policies
Customeroriented
management

Promotion ofDX

Ratio of sales inside and outside the Aeon Group:
60%：40%360 facilities
Reduction of 180 on-site staffs through area
management
Reallocation of 20% of headquarters staffs to direct
departments through consolidation of functions
Full-year sales of domestic group companies: 65 billion
yen*

Group

Overseas sales ratio: over 8%*

Management
Convert domestic group finance and accounting
departments to shared services (full year)* Former revenue recognition standard

services for all domestic groupcompanies©2023 AEON Delight All Rights Reserved10Business Expansion in Asia
In China, Sales and profits increased due to expansion of share within customers
and acquisition of new customers.
Sales and profits increased in ASEAN as the economy recovered from COVID-19.

[Overseas business] Net sales: 133.9 % YoY; Operating income: 121.7 % YoY*
Overseas Business: Net Sales / Operating Income (100 million yen)
(Net sales)

中国
China

マレーシア
Malaysia

Vietnamベトナム

Indonesia
インドネシア350

Operating income

営業利益（中国）(China)

営業利益（アセアン）(ASEAN)

25331

300250(Operating income)Operating income

19247

152015200
150

1010055000Net sales

Operating income

FY2/22*Figures are simple totals for operating companies.

Net salesOperating income

FY2/23©2023 AEON Delight All Rights Reserved

11

Contents

1Financial Report for FY2/23

2

Initiatives for FY2/24©2023 AEON Delight All Rights Reserved

12

Positioning for FY2/24
We will continue our efforts in accordance with the 3 basic policies and carry out thetransformation towards a new growth strategy toward the post-COVID era,accompanied by major environmental changes.

FY2/23 Results(Ratio to sales)

FY2/24 Forecasts(Ratio to sales)

3,037(100.0%)

3,100(100.0%)

102.0%

Operating income

158(5.2%)

160(5.2%)

101.2%

Ordinary income

160(5.3%)

160(5.2%)

100.0%Net income attributable toowners of parents

101(3.3%)

104(3.3%)

102.4%(100 million yen)

Net sales

Percentage change©2023 AEON Delight All Rights Reserved

13Customer-oriented Management ① Initiatives to Expand Market Share

Expand market share by further contributing to customer success

Further strengthen account management

１ Expand share within customers
 Accurate understanding of issues through strengthening relationships
with customers

Construct and propose customized solutions for each customer

Strengthen Construction Work business to meet the growing needs of customers

2 Strengthen construction management
 Aggressive proposal activities for management properties
Meet the growing needs of customers (both in quality and in quantity)
including energy-saving construction.
©2023 AEON Delight All Rights Reserved15Customer-oriented Management ② Respond to rising energy costs
Leveraging the know-how cultivated in the field of facility
management to actively offer energy-saving proposals

Aggressive energy-saving proposals,
especially to customers who are large
consumers of electricity.
••••

Changing to LED lighting/upgrading
Upgrading air conditioning systems
Sales of non-CFCs showcases
Introduction of energy management tools, etc.

Helping customers reduce their environmental impact and energy costs©2023 AEON Delight All Rights Reserved

16Customer-oriented Management ② Expansion of Healthcare Solutions
Develop solutions to improve the hygiene standards of facilities by utilizing theknow-how gained through infection preventive measures in various facilities.

In conjunction with the developmentof "sanitary cleaning" for medicalrelated facilities, we strengthened
cleaning proposals, including
quarantine measures, foraccommodation facilities.

Ensuring the “safety and security” of facilities, including infection control©2023 AEON Delight All Rights Reserved

17Promotion of DX ① Promote Utilization of AD Platform
Establish a system for unified management of major systems and analysis andprocessing of voluntary data, creating a data-driven (data-based decision-making andaction) internal system

Management andoperation information offacility

AEON Delight Platform
Existing customers

Managed facilities
Collect and analyze various dataand process them into valuable
informationSolutions that
contribute tosolving issues

CustomerInformation/Industry
Information

Account manager

Potential customers©2023 AEON Delight All Rights Reserved17

Promotion of DX ② Strengthen implements for the accomplishment of “area management”
Promote the transformation of facility management operations as well as
the development of area management● Labor-saving at 87 new facilities(360 facilities in total)
Aiming to reallocate more than 13 specialist
personnel (cumulative total of 180), develop"area management" targeted in the mediumterm management plan
● Improve on-site productivity byautomating routine operations (facilityinspections, report preparation, etc.)●CSC of the Kanto Branch Office, which
has strengthened facilities©2023 AEON Delight All Rights Reserved18

Group Management ① Initiatives by Group Companies in Japan
Aiming for growth as the AEON Delight Group, formulate strategies for eachindividual company and clarify functions and roles within the Group
Company name

Initiatives

AEON DELIGHT CONNECT

Target companies that operate small and medium-sized shops across thecountry, creating dominance in each region

Hakuseisha

Establish competitive advantage in facility management operations atdepartment stores (Deepen facility management operations and ancillary
operations and strengthen business foundations)Kankyouseibi

Strengthen cooperation with AEON Delight, strengthen sales structure,and formulate and implement sales strategies for each area

AEON COMPASS

Expand travel-related business, capture event-related demand andexpand service areas in business travel support©2023 AEON Delight All Rights Reserved

19Group Management ② Initiatives to Form a Regional Economic Zone
Acquired Ask Maintenance Co., Ltd., which operates A building maintenancebusiness centered on cleaning in the Kyushu region, as a wholly owned
subsidiary

Net sales: 1.6 billion yen,
Operating income: 31 million yen(FY3/22)● Headquartered in Kumamoto City, operating
throughout the Kyushu region● Services for various types of facilities, includingcommercial facilities, hospitals, and government
properties● Became the first operator in Kyushu to acquire
the Eco Mark for cleaning services

Expand business base in Kyushu.
Integrate the technologies and know-how
cultivated by both companies to further improve
quality and improve management efficiency● Operating areas of Ask Maintenance©2023 AEON Delight All Rights Reserved20

Group Management ③ Business expansion in Asia (China)
Driving overseas business in Asia's largest growth area
● AEON Delight Jiangsu
・Expanded share within the Aeon Group,
strengthen sales to tenants, and expand
outsourcing

・Strengthened sales to Japanese companies
outside the Aeon Group/expand customer base.
Further leveraging this to strengthen sales toother foreign-affiliated companies● Wuhan Xiaozhu

・Strengthened service quality through quality
management and human resource development
・Expanded contracts in residential properties,
hospitals, and schools

Aggressively implement M&A and investments required to acquire expertise and expand
business domains©2023 AEON Delight All Rights Reserved21

Group Management ③ Business expansion in Asia (ASEAN countries)
Strengthening management base for medium- to long-term growth

Expand business and strengthen quality
management in Malaysia, Vietnam,
Cambodia, and Indonesia©2023 AEON Delight All Rights Reserved

22

Dividends
Dividends have increased for
Aiming for

18 consecutive years since FY2/06.

19 consecutive years of dividend increase

85 yenPlan to pay
per share for FY2/23 as forecasted at thebeginning of the fiscal year(Actual payout ratio: 41.8%)

For FY2/24, based on the assumption that the performance
forecasts will be achieved,
Plan to pay dividends of86 yen(Payout ratio: 40.1%)©2023 AEON Delight All Rights Reserved23

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
(Rounded down to the nearest 10 million only in part of p.3 and p.6)
◇ Percentages have been rounded off to one decimal place

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

Department in charge of IR:
Public Relations & Investor Relations
TEL 03-6895-3892
Please contact us on our website.
https://www.aeondelight.co.jp

Based on information available up to the date of publication (April 11, 2023)
These forecasts have been prepared and are subject to change due to various factors going forward.