Supplementary Information on the Financial Results
for the Three Months Ended May 31, 2015

July 8, 2015
©2015 Aeon Delight All Rights Reserved

FY2/16 1Q Financial Highlights
Changes in the business environment■ Among major medical institutions, universities and some major manufacturers,
there are increasing trends toward revamp of installation management from the standpoints of quality
and cost, and greater demand for comprehensive facility management (FM) services.
■ Employee supply-demand is tightening, and for definite acceptance of new inquiry properties,
securing human resources and reinforcement of education and training systems are matters of urgency.
■ For FM services, demand continues to be exceeding the supply in China and ASEAN countries

Financial summary■ Sales and earnings increased and achieved the highest income backed by increasing needs for FM
services (Net sales 70.5 billion yen, 106.1% YoY / Operating income 3.6 billion yen, 102.4% YoY)
■ Acquired new customers outside the AEON group including 21 medical-related facilities etc.
(doubled the number of hospital bed YoY)
■ To further bolster competitive advantages in the hygiene control segment, implemented measure to
make cleaning quality more visible. In the energy solutions segment, measures are going forward tobring in and develop remote control systems using IoT.
■ For overseas business, expand customer base by providing services to 155 facilities in China,
122 facilities in Malaysia and 171 facilities in Vietnam mainly for individual orders

2©2015 Aeon Delight All Rights Reserved

FY2/15 1Q Financial Summary
Sales and earnings increased and were all-time highs due to steady increase of orders forlarge facilities and business growth of subsidiaries including overseas subsidiaries.
100 million yen

FY2/16 1Q

AmountFY2/15 1Q

Pct. to net
sales (%)

YoY (%)

Amount(actual)Pct. to net
sales (%)

Net sales

705

100.0

106.1

664

100.0

OperatingincomeOrdinary
income

36

5.1

102.4

35

5.3

36

5.2

102.6

35

5.4

Net income

20

2.9

103.1

20

3.03

©2015 Aeon Delight All Rights Reserved

Net Sales by Segment
Net sales of each six businesses increased YoY. Double increase in construction work businessand support business. Vending machine business implemented the measures for provision ofnew value, while the sales volume in the whole industry is decreasing.
100 million yen

FY2/16 1Q actual
Net sales

Composition
ratio (%)

FY2/15 1Q actual
YoY (%)Net sales

Composition
ratio (%)

Facilities management

121

17.2

107.8

112

16.9

Cleaning services

116

16.5

106.5

109

16.5

Security services

93

13.2

104.2

89

13.4

Construction work

130

18.5

110.1

118

17.8

Materials/supplies
sourcing services

120

17.1

103.1

117

17.6

Vending machine services

81

11.5

97.3

83

12.5

Support services

426.0

121.6

34

5.2

4

©2015 Aeon Delight All Rights Reserved

Initiatives Results by Segment
Facilities
management
Cleaning services

Increased shares in the hospital nursing market by providing the unique hygiene control
services for medical-related facilities. Implemented the continuous quality improvement ofcleaning services

Security services

Contracts for permanent and temporary security at newly opened facilities expanded, as
did attendee welcoming services within facility security. 35 shops have brought in thelatter.

Construction work

To increase customer drawing power, promoted proposals to corporations looking toinvest in commercial facilities. Contracts are expanding well, centering on invigoration ofexisting shops and on maintenance and repair construction

Materials/supplies
sourcing services

Orders from both new and existing customers are increased. Continued to promote
the initiatives for profitability improvement by reducing procurement and distribution
costs with using electronic negotiation systems

Vending machineservices

While the YoY sales volume in the whole industry is decreasing, established new division
specialized in customer cultivation. Developed and expanded the sales of private brandbeverages for bending machine. Advertised digital signage vending machines.

Support services

5In addition to new consignments, those for Freon control agency work under the "Law
Related to Freon Control" expanded in and after April. Energy management systemdevelopment is going forward.

Expanded sales of housework services “KAJICloud” by KAJITAKU Co., Ltd.
(Up 148.2% YoY) Expansion of living support services contributed to the sales growth.

©2015 Aeon Delight All Rights ReservedConsolidated Balance Sheet： FY2/16 1Q
100 million yenFebruary 28,2015
End of FY2/15

May 31, 2015
1Q

Difference

Current
assets

1,0441,0472Fixedassets

215

216

0Tangible fixed
assets

43440February 28,2015
End of FY2/15

May 31, 2015
1Q

Difference

Currentliabilities

466462△4Fixedliabilities

1918△0Totalliabilities

485

480

△5Intangible fixed
assets109108△0Investments,
etc

62

63

0Total net assets

774783

8Total assets

1,260

1,263

3Total liabilities andnet assets

1,260

1,263

36
©2015 Aeon Delight All Rights ReservedConsolidated Cash Flow Statement： FY2/16 1Q
100 million yen
Major factors for increase/decrease(100 million yen)

【 Operating cash flows 】 △17
Income before income taxes

36Decrease (increase) in accounts receivable△37

Increase (decrease) in accounts payable

26

Decrease (increase) in consumption tax payable△11【 Investing cash flows 】 26
FY2/2015 1Q

7

FY2/2016 1Q

FY2/2015
1Q

FY2/2016
1Q

ChangeCash flows from operating activities

29△17△47

Cash flows from investing activities

1126

14

Cash flows from financing activities△12△13△0

Cash and cash equivalents at theend of year

148

149

0

Increase (decrease) indeposit of subsidiaries and affiliates forconsumption

34【Financing cash flows】 △13
Dividend payment△13©2015 Aeon Delight All Rights ReservedQuarterly Net Sales for the Past Three Years
100 million yen

Quarterly net sales

Total quarterly net sales
100 million yen

8©2015 Aeon Delight All Rights ReservedQuarterly Operating Income for the Past Three Years
Quarterly operating income
100 million yen

Total quarterly operating income
100 million yen

170
80

9

©2015 Aeon Delight All Rights Reserved

Initiatives from 2Q Onward：Strengthen Competitive Advantages■ Strengthen business competitivenessHygiene control

・ Make cleaning quality more visible. Building evaluation standards for infection control at
medical facilities
・ Implement on-site quality improvement continuously
・ Challenge for innovation in the cleaning industry： Develop cleaning robots

Energy solution

・Introduce and operate unique telecontrol system capable realizing energy
and cost saving through comprehensive management of various equipments
introducing IoT (Internet of Things)

Asia

China ：Enhance the local management structure . In Jiangsu, aim to expand customers outside
the AEON group driven by offering services to increasing AEON stores.
Malaysia： Accelerate the efforts to further increase contracts by AEON group. To meet the needs
for energy saving, promote the facility management-integrated energy saving services
Vietnam：Expand the business area by establishing new office (Hanoi office)■ Enhance the organizational framework
Recruit more people,
strengthen educationand training system

Improve the service quality

10・ Strengthen recruiting activity for securing human resources.
Established “Education Division” (as of June 1) to enhance the development and training
system as a source of competitiveness・ Established “Quality Assurance Division” (as of June 1) to maintain andimprove service quality and prepare for introducing IOS to FM©2015 Aeon Delight All Rights Reserved

(Reference)Initiatives for FY2/16

Positioning of FY2/16“Favorable conditions and great opportunities”-- Following wind for AEON delight in a management environment
FY2/16 is year to decide the match: Capture market share in Japan and Asia

≪Perceptions of the domestic management environment≫≪Perceptions of the management environment in China≫(1) Inflationary trends will change the management
environment. Though pressure will come from cost increases
and hiring difficulties, there are opportunities in our competitiveenvironment. Oligopolization in the market will enhance.

(1) Real estate market shifts point to waning condominium
demand, particularly in the major cities. The priority trend is awayfrom expansion and toward quality. In commercial facilities, energy
conservation is inevitable.

(2) At large facilities, tendencies toward bundled entrusting offacility management services are notable, increasing switchingof outsourcers (many inquiries from hospitals, universities,
large corporations)(2) Business areas will be expanded centering on companies thatjoin our Group by means of joint venture strategies. We aresearching for new energy conservation partners. The pace ofChina's commercialization is extremely high.

(3) Greater consciousness of emergency responses andsafety in abnormal weather and natural disasters≪Perceptions of the ASEAN management environment≫(4) Retail industry is experiencing a difficult struggle since last
year's consumption tax rate hike. Increase in investment
interest at commercial facilities.
(5) Full scale invasion of the industry by foreign major
companies and companies in other industries is nearing.
Competition will soon be characterized by facility management
by international standard specifications and by reform-driven
innovation.

15(1) The stages of FM business development vary by country.
Singapore and Malaysia are advanced countries in FM operations,and foreign companies in Europe and the U.S. have madeadvances there, but no company is overwhelmingly prominent.
(2) The business is undeveloped, and it is necessary to build anindustry top class business foundation before a competitive
landscape is fixed up.

Copyright ©2014 AEON DELIGHT CO., LTD. All Rights Reserved.

©2015 Aeon Delight All Rights ReservedFY2/16 Priority Measures① Expand customers outside the AEON Group① Supplement the new sales force ② M&A (facilities management subsidiaries of major companies)③ Focus on capture of hospital nursing facilities ④ Reinforce the sales of patrol centers⑤ Develop continuous sales ⑥ Expand the route of customer introductions from consulting companies② Establish competitive advantages① Secure labor power and cooperating companies② Added value creation, innovation
Hygiene control business ：Develop cleaning robots and put it into practical use
Energy solution business：R&D of next-generation facility management③ Expand the business in Asia
① China：Expand the business area, reorganization, create product models for energy conservation
packages by means of alliances② Malaysia：Cultivate customers with ESCO business. Promote to change the outsourcing contractor offacilities, operated by AEON group, to AEON delight. Increase contracts outside the AEON group.
③ Vietnam：M&A, Accelerate the growth by means of alliances, Establish Honoi Office©2015 Aeon Delight All Rights Reserved

Business Forecast for FY2/16(100 million yen)

Full-year forecast for FY2/16
Pct. tonet sales(%)

AmountNet sales

YoY (%)

2,800 100.0 105.0

FY2/15 actual
Pct. tonet sales(%)

Amount(Actual)

2,667

100.0

Operatingincome

170

6.1

107.2

158

5.9

Ordinary
income

170

6.1

106.6

159

6.0

Net income

94

3.4

107.7

87

3.3

©2015 Aeon Delight All Rights Reserved

Measures for Operating Income Expansion
FY2/16 Operating income ¥１７billion
Measures24

YoY +¥1.2billion
YoY change （billion）

Measure 1：Expand customers
outside the AEON Group

¥1-1.5 billion

Measure 2：Improve profitability of each business¥1-1.5 billion

Measure 3：Grow the subsidiaries’ businesses¥0.5 billion

Measure 4：Expand contract of AEON Group¥0.5 billion

1-4 Total: Increase in gross profit margin¥3-4 billion

YoY Increase in SG&A▲¥2 billion

YoY Increase in operating income¥1-2 billion

Copyright ©2014 AEON DELIGHT CO., LTD. All Rights Reserved.

©2015 Aeon Delight All Rights Reserved

Balance between Investment for Growth, Capital Efficiency and Shareholders’ return

Regard ＲＯＥ as an important indicator, and maintain １２％ level■ ROE：Emphasize the ROE as a management discipline for shareholders, with aiming point of 12% level■ Dividend ratio：Place the most importance on stable dividend, maintain 30% level of payout ratio for recent five years(ROE ％)(EPS yen)

250.0

EPS

12.6%

12.5%

12.3%

12.0%

ROE％

15.0%

Forecast

200.0

12.0%
166.2

150.0

9.0%

155.5

143.2
131.8

100.0

6.0%

50.0

3.0%

0.0

26

FY2/12
2011年度

2012年度FY2/132013年度FY2/14

FY2/152014年度FY2/16 E
2015年度E0.0%©2015 Aeon Delight All Rights ReservedShareholder Return
Aim for eleven consecutive years of increased dividends since FY2/05
FY2/04

FY2/05

FY2/06

FY2/07

FY2/08FY2/09

FY2/10FY2/11

FY2/12

FY2/13

FY2/14

FY2/15

Dividend

¥8.0

¥9.0

¥15.0

¥17.5

¥22.0

¥27.0

¥39.0

¥40.0

¥46.0

¥48.0

¥50.0

¥52.0

Payout
ratio

38.4％

28.0％

19.8％

15.9％

17.9％

19.6％

27.4％

30.3％

32.1％

30.9％

30.1％

29.1％

60

Dividend
配当予想
forecast

Commemorative
記念配当
dividend

Dividend
配当金45.0

Payout
ratio
配当性向

40.0

5035.04030.0

5

25.0

30
20
10089

2004年度FY2/05

2005年度FY2/0615
2006年度FY2/07

17.5
2007年度FY2/08222008年度
FY2/0927344046485052

20.0
15.0
10.0

5.0
2009年度FY2/102010年度FY2/11

2011年度FY2/12

2012年度FY2/132013年度FY2/142014年度FY2/152015年度FY2/160.0*On December 1, 2007, the company conducted a two-for-one stock split. The dividend amount assumes that the stock split was conducted at thebeginning of FY2/05.
*A commemorative dividend of 5.00 yen is included in the year-end dividend for FY2/11.

27©2015 Aeon Delight All Rights Reserved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.

(Stock code: 9787)

IR Contact Yoshiaki KyomotoGroup Strategy Div.
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 (July 8, 2015). The
business forecasts may be revised due to various factors that may arise in the future.

©2015 Aeon Delight All Rights Reserved