Financial Results for the Fiscal Year Ended
February 29, 2020

AEON DELIGHT CO., LTD.
Kazumasa Hamada, President, Group CEO
April 10, 2020

Contents0

Response to the New Coronavirus Infections

1

Financial Report for the Fiscal Year Ended February 20202

Progress of Recurrence Prevention Measures for
Inappropriate Accounting by a consolidated subsidiary KAJITAKU

3

Initiatives for the Fiscal Year Ending February 2021

©2020 AEON Delight All Rights Reserved2Response to the New Coronavirus Infections (1)We are putting into practice actions that prioritize the health and safety of all our
employees - including our partner companies - above all else so that we can continue toprovide services to our customers.

Efforts to protect our employeesWe are managing the physical condition of all
our employees - including our partnercompanies - and taking measures to prevent
infection of the new coronavirus .

We are promoting staggered working hours andtelecommuting.

Response for customers (managed properties)

 Preventative cleaning with alcohol

We are implementing preventative cleaning withalcohol at our managed properties focused on
stores of the AEON Group.



We are taking a prompt and appropriate
response in cooperation with partner companies
who have expertise in this area in facilities where
it has been confirmed there are those who havetested positive for the new coronavirus .
©2020 AEON Delight All Rights Reserved3Response to the New Coronavirus Infections (2)We are also carrying out our mission
as an environmental value creation company in Wuhan
Efforts of Wuhan Xiaozhu Property
Management Co., Ltd.
AEON is continuing to operate five stores
locally - Jinyintan, Jingkai, Xicheng, Jinqiao
and Gemdale - to protect the lives and lifestylesof our customers on a daily basis.
We are supporting store operations as an FM
company.

 Response at a local AEON mallIn addition, we involved in preparations for theconstruction of a temporary medical facility
locally. We also implemented advance cleaning
and indoor setting of medical teamaccommodation hotels in a limited time (within
48 hours).
We have been awarded the title of “Real EstateManagement Service Company Possessing
Advanced Infection Prevention Capability”
by the Jiangxia District of Wuhan.

*The impact on consolidated financial results in FY2019 from the new coronavirus was minimal.
We will give the calculation of the impact on our business results in FY2020 later.
©2020 AEON Delight All Rights Reserved

4

Contents0

Response to the New Coronavirus Infections

1

Financial Report for the Fiscal Year Ended February 20202

Progress of Recurrence Prevention Measures for Inappropriate Accounting by KAJITAKU

3

Initiatives for the Fiscal Year Ending February 2021

©2020 AEON Delight All Rights Reserved

5Introduction - About KAJITAKU Co., Ltd., which had an inappropriate accounting problem

On February 4, 2020, we established Actia Corporation as a new subsidiary to focus on theHousekeeping Support Business through the Incorporation-type Company Split

Establish core competencies byconcentrating management resources on
the housekeeping support market,
which is expected to grow in the future
Aiming to grow as a company
specializing in housekeeping support formaking a clean start
The Store Support Business will stop receiving new orders and proceed withthe restructuring procedures including business split and sell-offs
while conducting existing contracts as KJS Corporation (formerly KAJITAKU Co., Ltd.)*With respect to the accounting issues of our consolidated subsidiary KAJITAKU, please refer to the "Measures to Prevent
Recurrence of Inappropriate Accounting at Our Consolidated Subsidiary KAJITAKU CO., Ltd." dated July 22, 2019.
©2020 AEON Delight All Rights Reserved

6Consolidated Statement of Income
Sales and profits increased, with profits reached a record high, but fell short of the business
forecasts due to a lack of new property acquisitions and delay in productivity improvement
measures.
(100 million yen)
FY2/19(Ratio to sales)

FY2/20(Ratio to sales)

Difference

PercentagechangeNet sales

3,029 （100.0%）

3,085 （100.0%）56

101.9%

Gross profit

354 （11.7%）385 （12.5%）

31108.8%

SG&A expenses

224（7.4%）

225（7.3%）

1

100.7%

Operating income

130（4.3%）

160（5.2%）

29

122.8%

Ordinary income

133（4.4%）

159（5.2%）

25

119.4%Net income attributableto owners of parent

64（2.1%）

93（3.0%）

29

145.7%©2020 AEON Delight All Rights Reserved

7[Reference] Income Statement excluding KAJITAKU (Same Scale Comparison)
Net sales increased due to the expansion of new customers and the growth of overseas subsidiaries.
Operating income increased, driven by security, cleaning, vending machines, and support businesses.

(100 million yen)

[Reference]

FY2/19(Ratio to sales)

FY2/20(Ratio to sales)

Difference

PercentagechangeNet sales

2,974 （100.0%）

3,041 （100.0%）66

102.2%

Gross profit

384 （12.9%）

390 （12.8%）

5

101.4%

SG&A expenses

214（7.1%）

218（7.1%）

3

101.8%

Operating income

170（5.7%）

172（5.7%）

1

100.8%©2020 AEON Delight All Rights Reserved

8

Sales by Segment
Sales increased in 5 businesses.
Cleaning services: Indonesia's SJS acquired in the previous fiscal year contributed to the growth.
(100 million yen)

FY2/19FY2/20

Facilities management

563

582

103.4%

Security services

444

446

100.4%

Cleaning services

581

623

107.2%

Construction work

414

418

100.9%

Materials/supplies
sourcing services

510

511

100.2%

Vending machineservices

319

315

98.7%

Support services

194

187

96.5%

(Reference)
Excluding KAJITAKU

139

143

102.5%

3,029

3,085

101.9%

Total

Percentage change©2020 AEON Delight All Rights Reserved

9Profit by Segment
Increase profits in 3 businesses. Earnings model of vending machine services has changed.
Purchase costs for facilities management services were increased.
Construction work was affected by failure to meet sales target. Materials/supplies were affected by lower sales to major
customers.
(100 million yen)

FY2/19FY2/20

Facilities management

55

52

95.2%

Security services

28

30

105.4%

Cleaning services

66

69

104.1%

Construction work

39

38

95.7%

Materials/supplies
sourcing services

27

24

89.6%

Vending machineservices11

13

119.9%

Support services

△22

4

-%

(Reference)
Excluding KAJITAKU

17

16

91.9%

Total

207

234

112.6%

Percentage change©2020 AEON Delight All Rights Reserved

10Consolidated Balance Sheet(100 million yen)

AssetsFY2/19FY2/20Difference

Current assets

1,072

1,123

50

Tangible fixed
assets

101

96

▲4

Intangible
fixed assets

81

71

▲9

Investments,
etc.

85

76

▲8

Fixed assets

267

245

▲22

Total assets

1,340

1,369

28

Liabilities andnet assets

FY2/19FY2/20Difference

Current
liabilities

514

488

▲25

Fixed
liabilities

71

67

▲3

585

556

▲29

Shareholder’sequity

727

789

62

Total net assets

755

812

57

Total liabilities
and net assets

1,340

1,369

28

Total
liabilities©2020 AEON Delight All Rights Reserved

11Consolidated Cash Flow Statement(100 million yen)
FY2/19FY2/20DifferenceCash flows fromoperating activities

123

73

▲50

Cash flows frominvesting activities

122

138

15

Cash flows fromfinancing activities▲196

Cash and cash
equivalents at theend of year

434(100 million yen)
OperatingCF
営業ＣＦ

InvestingCF
投資ＣＦ

Financing
財務ＣＦCF

150
100
50
0
(50)

▲33

162

(100)
(150)

611

177

(200)

FY2/19FY2/20©2020 AEON Delight All Rights Reserved

12

Major initiatives for FY2/20
１

Safety● Aggressive proposal activities to support the development of disaster prevention and disaster mitigation
systems● In response to natural disasters such as typhoons No. 15 and No. 19, support activities were conducted incooperation with Aeon Group companies.
● Held an internal contest for each business (facilities management, security, and cleaning) with the aim of
becoming a group of facility management professionals.

2

Labor shortage● Introduced integrated facility management services using Open Network System ( Building Automation )to Aeon Fujiidera SC in order to build AD Platform.
● Started a new project with SECOM CO., LTD to strengthen non-onsite management to expand service
provision to small and medium-sized offices.

3

Environment● Demonstration of renewable energy power supply utilizing blockchain technology started in October toward
the establishment of energy management services.
● Received the Chairman's Award of the Energy Conservation Center of Japan in the 2019 Energy
Conservation Grand Prize for energy saving activities with introducing air conditioning control systems tocommercial facilities.
©2020 AEON Delight All Rights Reserved

13

Business expansion in Asia
Double-digit growth in both sales and operating income in the Overseas Business (*)
Overseas Business: Sales and Operating Income (100 million yen)
（Net sales)

China

Malaysia

VietnamOperating income（Operating
income）

197

200
160

Indonesia

20

16

159

120

16
12

11

80

8

40

4

0

0
Net sales

Operating income

FY2/19* Figures are simple totals of results of operating companies.

Net sales

Operating income

FY2/20©2020 AEON Delight All Rights Reserved

14

Contents0

Response to the New Coronavirus Infections

1

Financial Report for the Fiscal Year Ended February 20202

Progress of Recurrence Prevention Measures for
Inappropriate Accounting by a consolidated subsidiary KAJITAKU

3

Initiatives for the Fiscal Year Ending February 2021

©2020 AEON Delight All Rights Reserved

15

Strengthening Group Governance

Strengthening of group governancein light of inappropriate accounting at KAJITAKU
Under the newly established Group Compliance Headquarters, we are promoting initiatives
to "Creating a corporate culture that does not cause frauds" and "Establishment of fraud
prevention mechanisms" throughout the AEON Delight Group.

Creating a corporate culture that does not cause frauds

×
Establishment of fraud prevention mechanisms

Strengthening the Group's management foundationfrom the viewpoints of corporate culture and structure©2020 AEON Delight All Rights Reserved

16Progress in preventing recurrence of the inappropriate accounting at KAJITAKU
To accelerate the growth strategy of the Aeon Delight Group, strengthen the group
governance system and steadily implement measures to prevent recurrence

Strengthening of the Group's governance system
 Accelerating the entire AEON Group’s growth strategy as well as establishing
3 pillars of group governance(①Growth strategies of each company, ②Budget control, ③Internal control system)

 Establishment of Group Compliance Division
 Establishment of Recurrence Prevention Committee

Implementation of measures to prevent recurrence at Actia (formerly KAJITAKU)Reform and strengthen the management systemRaise awareness of compliance among management and all employees

Establish a system to foster a healthy organizational culture*For details of the measures to prevent recurrence, please refer to the "Measures to Prevent Recurrence of Inappropriate Accounting at Our
Consolidated Subsidiary KAJITAKU CO., Ltd." dated July 22, 2019.
*For the schedule of the implementation of measures to prevent recurrence, please refer to the " Financial Results for the Six Months Ended
August 31, 2019 (p. 17-18)" dated October 9, 2019.

©2020 AEON Delight All Rights Reserved 17

Contents0

Response to the New Coronavirus Infections

1

Financial Report for the Fiscal Year Ended February 20202

Progress of Recurrence Prevention Measures for
Inappropriate Accounting by a consolidated subsidiary KAJITAKU

3

Initiatives for the Fiscal Year Ending February 2021

©2020 AEON Delight All Rights Reserved

18

Position and plan figures for FY2/21
Year of laying the foundation for the realization of the “AEON DELIGHT Vision 2025*”(100 million yen)

Net sales

FY2/20 Result(Ratio to sales)

FY2/21(Forecast)

Percentage change

3,085 （100.0%） 3,150 （100.0%）

102.1%

Operating income

160（5.2%）

165（5.2%）

103.1%

Ordinary income

159（5.2%）

165（5.2%）

103.4%Net income attributable toowners of parents

93（3.0%）

100（3.2%）

107.0%* Estimated data considering the impacts of the new coronavirus* For more information about Aeon Delight Vision 2025, please refer to the "Financial Results for the Fiscal Year Ended February 28,
2019 (p. 22-25)" dated June 28, 2019.
©2020 AEON Delight All Rights Reserved

19

The Impacts of the Spread of New Coronavirus
The impacts is expected to be approximately *1.5 billion yen in terms of operating profit.

※ Estimated on the assumption that the effects will last until the end of the first halfof the fiscal year such as canceling events and temporary closure of the AEON groups’
stores along with the state of emergency declared on April 7 th .
Businesses at Risk for COVID-19
Vending Machine Services：Sales will drop because of the temporary closure of
the AEON groups’ stores.
Businesses Related to Events (Security Services and AEON compass Co., Ltd.): Theirsales will decline due to cancelling events and travels.
OthersConstruction Work Services: Little impacts by the virus and that become theleading market for our sales by adjusting the schedules of construction

We are attempting to do as much to contribute to our customers by supporting
their infrastructures with our growth services, security services(not for events),
cleaning services, materials/supplies sourcing services and so on.
©2020 AEON Delight All Rights Reserved

20Scenario for achieving operating income budget
Aim to achieve the operating income budget by increasing market shareand improving productivity(100 million yen)

180

140

KAJITAKU(KJS/Actia)
Operating loss (estimation):
500 million yen

Operatingincome:16 billion yen

KAJITAKU
Operating loss:
1.2 billion yen

Accumulated
operating income:1.3 billion yen

Operating income
budget:16.5 billion yen

Impact of the newcoronavirus infection:
1.5 billion yen

100

60

FY2/20FY2/21©2020 AEON Delight All Rights Reserved21Causes of the Failure to Reach Our Operating Income Target in FY2020 and Measures for FY2021

CausesDeterioration in facility
management profitability anda delay in measures against
thisDeterioration in cleaning
profitability and a delay inmeasures against thisMeasures for FY2020
We will accelerate efforts to reduce the number of resident staff posts at facilities withthorough standardization and centralization of some operations. We will look to radicallyreform business processes to match the acceleration in the introduction of open network
systems.

We will promote the elimination of low-profit properties at the branch office level. We will
look to improve productivity - including at our partner companies - by expanding the
introduction of cleaning robots and conducting improvement activities at the site level.

Insufficient building
construction work contracting

We will strengthen our contracting structure focused on the large markets of Kanto andKansai. We will increase participation in projects from the design stage and look to
expand the contracting of large construction work projects.
Furthermore, we will organize the service network with the cooperation of consolidated
subsidiaries and partner companies

Deterioration in materialrelated profitability

We will continue to work on reducing distribution costs in addition to increasing newcustomers and proposing high value-added products (e.g., environmental materials).

Impact of the Kajitaku casegreater than expected

We will reduce the impact of the negative factors by promptly working on procedures toreorganize our storefront support business in addition to growing AQUTIA, the newly
established division specialized in housework support.

©2020 AEON Delight All Rights Reserved

22Issues to be Addressed and Measures

Issues to be Addressed

Countermeasure Expand market share by existing customers
through strengthening account sales activity

Expand market share Business expansion in Asia

Increase productivity

 Streamlining of head office and branch office
functions Cost reduction through unification of building
maintenance materials by the Purchasing
Department

Increase market share to improve productivity through the steady
implementation of the above measures in conjunction with theresolution of issues in FY2/20.
©2020 AEON Delight All Rights Reserved 23

Business Expansion in Asia ①-1 China Initiatives in Aeon Delight Jiangsu
Expand facility management from points (properties) to plane (cities)
Suzhou urban development strategy“1 core, 4 districts”

May 2016 Established a JV company with local top class real estate
investment & development company.
Participated in Gaotie Xincheng Project, spanning 28 square
kilometers in northern Suzhou

Focused on FM management contracts for properties
within the area, contributing to business results

2020 Based on the above know-hows, we areparticipating in new urban development projects
Promote FM on a city basis (rather than by property) to form a regional economic zone
including Aeon stores©2020 AEON Delight All Rights Reserved 24

Business Expansion in Asia ①-2 China Initiatives in Wuhan Xiaozhu
With the restoration of urban functions in Wuhan City, we aim to achieve a smooth
resumption of operations and to recover the negative impact of the new coronavirus by
diversifying operations.

 A soft landing to normal business conditions
 Diversification of business to recover negative impact
 Expand the catering business, which is in high demand Entry into the road cleaning service
 Seeking new services in the areas of housekeeping and nursing carethat have a high degree of affinity with the medium-to-high-end
residences we manage©2020 AEON Delight All Rights Reserved 25

Business Expansion in Asia ②ASEAN
We planed to expand market share in the countries where we operate
and research new operating area. However, we are investing the impacts of the new coronavirus.

(Ref) Policies of expanding market share by each area

Area (local subsidiaries)*We are investigating the impacts of the new coronavirus.

PolicyMalaysia(Aeon Delight Malaysia)

Expanding market share within the AEON Group

Vietnam.
(Aeon Delight Vietnam)

Expanding market share within the AEON Group, while
expanding new contracts targeting offices andindustrial parks

Indonesia(Sinar, Journey, Sarana)

In addition to the contract with AEON Mall, we are
expanding new contracts to include offices, schools andfactories

Common to all areas

Expanding new contracts targeting Japanese companies
and hospitals through collaboration with AEON DELIGHT(Japan)©2020 AEON Delight All Rights Reserved 26

Mid- to Long-term Initiatives ① Expanding market share - Establishing new strengths

Establish new strengths and expand market share in Asia as a whole● Designing the best FM services for offices, factories, hospitals, and otherfacilities by strengthening marketing while leveraging the know-how cultivated incommercial facilities.
● By strengthening the sales structure by customer, we will evolve into a partner thatcan work together to solve the problems faced by companies and organizations
that own facilities, based on their management strategies.

We provide comprehensive services to our customers (companies andorganizations) for their facilities in Asia.

©2020 AEON Delight All Rights Reserved 27

Mid- to Long-term Initiatives (2): Productivity Improvement - Transition to SLA Contracts

We will transition from contracts with a certain number of workers deployed to
SLA contracts* in anticipation of patrol shifts.
 AD Platform Conceptual Diagram
Customers

AD platform based on an open
network system and DX ofvarious tasks

Local system, etc.
External information(weather, disaster, etc.)

Propose optimal solutions toevery kind of issues

AD Platform
Collection and accumulation of data ⇒ Analysis and processing ⇒ Optimal solution

Improvement in efficiency and quality

Decentralized administration system “Delight Viewer”[Service provision structure]
Our subsidiaries

Partner companies
Strategic partners

From resident/property-level
facility management
to patrol/area-level facility
management (patrol shifts)*SLA (Service Level Agreement) Contract:
This is a contract form with a commitment toworkmanship (results) instead of specifications(e.g., frequency or number of workers).

©2020 AEON Delight All Rights Reserved 28

Mid- to Long-term Initiatives (2): Productivity Improvement - Labor-saving Model
Construction Efforts
We will reduce resident staff posts with remote control in anticipation of patrol shifts.
We will start this initiative at our branch office in Hokkaido.

Customer facility

Our service baseWe implement remote control and central monitoringof movements in the facility at a monitoring station.

We will go to thefacility quickly in an
emergency.

This realizes efficientand flexible facility
management.
©2020 AEON Delight All Rights Reserved 29

Building a Foundation to Support Sustainable Growth① Promotion of diversity and inclusion- Promote diversity as a growth strategy② Development of global human resources- Introduced the "Management Trainee System" for young human resources
By experiencing work in different cultures at an early stage of their careers,
we develop international human resources with a broad perspective.

③ Finding young human resources- Establish the Human Resources Development Committee to find young
human resources
Placement in appropriate posts according to ability regardless of age©2020 AEON Delight All Rights Reserved 30

Shareholder Return

Dividends have increased for 15 consecutive years since FY2/06.
16 Consecutive Years of Dividend Increase

For FY2/20, we increased the dividendby 2 yen from the previous fiscal year, to

65 yenFor FY2/21, based on the assumption that the performance
forecasts will be achieved,

Plan to pay dividends of

70 yen,up 5 yen from FY2/20 with consolidated dividend payout ratio of 35% (*)* Net income attributable to owners of parent: 10 billion yen©2020 AEON Delight All Rights Reserved 31

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 Ishii
Delight 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 (April 10, 2020)
These forecasts have been prepared and are subject to change due to various factors going forward.