Financial Results for the Three Months Ended
May 31, 2018

July 4, 2018

Key Points of Financial Results for FY2/19 1QPerformance■ With a "labor shortage" becoming an issue, we have been working to improve productivity both in Japanand overseas, and sales and earnings increased, and all-time high earnings were reported.
Sales: ¥76.4 billion, 101.3% YoY, Operating income: ¥4.6 billion, 113.6% YoY

Initiatives■ In Japan, promoted demonstration experiments utilizing sensing technology for labor-saving at largecommercial facilities. Moreover, also implemented labor-saving measures at onsite-type service locations
by promoting operational efficiencies and standardization. Expanded the sales opportunities for mediumand small-sized facilities by reassigning personnel to patrol-type service locations.
■ In China, established AeonDelight DeepBlue Technology (Shanghai) Co., Ltd. in April through a joint
investment with Deepblue Technology (Shanghai) Co. Ltd., which has strengths in AI (artificial intelligence)research and development.
With using AI, IoT and robotics technology, this company, as an R&D center, will promote automation andoperational efficiency of facility management in a cross-border manner.

Expansion of customers■ In Japan, started providing services for research and development centers of public research institutes,
office buildings of pharmaceutical manufacturers, offices of foreign manufacturers, and hospitals, etc.
■ Steadily expanded customers in overseas countries (China and ASEAN countries).
©2018 AEON delight All Rights Reserved2Consolidated Income Statement
Sales and earnings increased, and all-time high earnings were reported thanks
to the efforts for expanding sales opportunities and improving productivity.
(100 million yen)
FY2/181Q (Ratio to sales)

FY2/191Q (Ratio to sales)

Net sales

755 （100.0%）764 （100.0%）

9101.3%Gross profit

97 （13.0%）

102 （13.4%）

4104.4%SG&A

57（7.6%）55（7.3%）▲197.8%Operating income

40（5.4%）46（6.1%）5113.6%

Ordinary income

41（5.5%）46（6.1%）5113.4%

Net income attributableto owners of parent27（3.7%）29（3.8%）1104.9%Difference

Percentagechange©2018 AEON delight All Rights Reserved

3

Sales by Segment
YoY increase in 6 segments. Construction work is affected by the impact of the postponement ofvarious construction projects by major customers, etc.
FY2/18 1Q

FY2/19 1Q

PercentagechangeFacilities management

131

141

107.1%

Security services

110

110

100.7%

Cleaning services

137

142

103.7%

Construction work

117

105

89.6%

Materials/supplies
sourcing services

126

129

102.1%

Vending machineservices

8081101.1%

Support services

52

55

106.0%

Total

755

764

101.3%(100 million yen)©2018 AEON delight All Rights Reserved

4Profit by Segment (Preliminary)Profits increased in 4 segments. Sales of construction work decreased and profits increased due to change in
portfolio and improvement of profitability.
Security services were affected by increase in outsourcing cost. Vending machine services have been shifting
its revenue model.
Percentage

FY2/18 1Q

FY2/19 1Q

change11.2

14.7

131.7%

Security services

7.7

7.2

93.4%

Cleaning services

15.7

16.8

107.2%

Construction work

9.1

9.8

108.5%

Materials/supplies
sourcing services

7.1

7.4

104.6%

Vending machineservices

4.2

4.1

99.4%

Support services

6.3

5.9

93.6%

Total

61.4

66.3

107.9%

Facilities management（100 million yen）

*Segment earnings…Operating income by segment calculated by excluding internal transaction by segment and corporate expenses(corporate common expenses not specified by segment)©2018 AEON delight All Rights Reserved5

Initiatives by Segment
Facilities
management

In addition to acquiring new contracts, undertaking periodic inspections of fire prevention
equipment, conducting load tests for emergency generators, and expanding contracts formalfunction and defect repair works to support the compliance response capabilities of customers.

Security services

To secure the labor force, continuously implement work style reforms, including improvementof the work environment. Promoting the systematization of services such as entrance/exit
management and security patrols for labor saving.

Cleaning services

In addition to acquiring new contracts, promoting the development and sales of eco-friendly
equipment. Continued to implement labor-saving measures in order to improve productivity morethan before.

Construction work

Actively proposing renovation work to replace tenants in shopping centers. To improve
productivity, conducting careful examination of various construction estimates.

Materials/supplies
sourcing services

Increasing contracts for packaging materials of Aeon PB products. In order to strengthen ties
with our clients, started testing the introduction of inventory management systems to help cost
reduction of our clients.

Vending machineservices

Expanding installation of digital signage advertisements by broadening the scope of our activities inareas such as installations of WAON-enabled-type equipment, the broadcasting of advertisements,
disaster information displays, and content planning using QR code, etc.

Support services

Contributions from consolidated subsidiaries, including KAJITAKU CO., Ltd., which provides
housework support services and store support services.

©2018 AEON delight All Rights Reserved

6Consolidated Balance Sheet（100 million yen）
Liabilities andnet assets

FY2/191QAssets

FY2/18

FY2/191Q

Current assets

1,202

1,209

7

Current
liabilities

434426▲8Tangible fixedassets

10099▲0Fixedliabilities

2726▲0Intangible
fixed assets

8078▲1462453▲9Investments,etc.

8583▲1Shareholder’sequity

959

972

13

Fixed assets

266261▲4Total net assets

1,005

1017

12Total assets

1,468

1,471

2

Total liabilitiesand net assets

1,468

1,471

2

Difference

Totalliabilities

FY2/18Difference©2018 AEON delight All Rights Reserved

7Quarterly Performance for the Past Three Years：Sales
Quarterly sales（100 million yen）
800

754 755

764

759

762

714

720

718

719

600

2016年度FY2/172017年度FY2/18400

FY2/192018年度200

1Q（100 million yen）

2Q

2947

2958

2228 2238

2000

04Q

Total quarterly sales

3000

1000

3Q

1514

2016年度FY2/171518

2017年度FY2/18754 755 764

FY2/192018年度
1Q

2Q

3Q

4Q

©2018 AEON delight All Rights Reserved

8Quarterly Performance for the Past Three Years：Operating income
Quarterly operating income（100 million yen）
6040394046454847394138

2016年度FY2/172017年度FY2/1820

2018年度FY2/1901Q

2Q（100 million yen）

3Q

Total quarterly operating income

200172 168
124 126150
85100500

4Q

3940

1Q

2016年度FY2/1788

2017年度FY2/1846

2018年度FY2/192Q

3Q

4Q©2018 AEON delight All Rights Reserved

9(Reference) Initiatives for the Fiscal Year Ending February 2019

Strengthening of IFM (Integrated Facility Management) Proposal
Use IFM to promote reforms of indirect
department/general affairs functions thathave growing demand due to shortage ofhuman resources
Customers(Management strategy)

Management Domain

Management Division

Grasp customers’ needs for outsourcing

To our customers’ IFM partner(General affairs, purchase…)

AEON Delight (IFM proposal)
Energy management/facility budget control/cost reduction
Work place
plan/BCP/formulation and management of improvement
plan/vender management, evaluation and training/outplacement

RPA※BTM

Operation Domain
Establish an effective portfolio●An optimum combination of internal andoutsourcing●Improve productivity and profitability

AEON Delight, affiliated companies and collaborating firms

Integrated services

IFM

MICE

Equipment/cleaning/security/energy conservation/building
construction/materials/vending machines/housekeeping
Catering/in-house delivery/uniform/dormitory operation/human resources andgeneral affairs work

*RPA (Robotic Process Automation) Robotic operational efficiency. Mainly takes care of white-collar work at back-office©2018 AEON delight All Rights Reserved

11Store Design and Interior Construction
Made a company specialized in store designing a wholly owned subsidiaryto strengthen the upstream of value chain and expand orders for interior
construction in Japan and abroad
Made U-COM Co., Ltd. with substantial
track records in commercial facilities inJapan and abroad a subsidiary

Previous major services

Strengthen organization

Research andplanningStore designing×Supervision

Production andconstruction

Aftermaintenance

Restoration workand compartment
formation

Total support from research and planning to after maintenance

Expand orders in Japan and abroad©2018 AEON delight All Rights Reserved 12

Business Expansion in Asia①China Business
Expand sales by two core companies and make a difference
through new business for further growth
Organic

Unexplored areas(Shandong, Guangdong)Catering

Renovation

Attract a huge market

Store design andinterior construction+ M&As aimed at shifting and creating business structure©2018 AEON delight All Rights Reserved 13

Business Expansion in Asia②ASEAN
Existing areas (Malaysia, Vietnam)
Promote alliance strategies with local leading
companies[1Q topics]
Malaysia
Received orders for the country’s largest resortrelated company’s facilities
VietnamReceived orders for the Japanese public office

Newly-developed areas (Cambodia, Indonesia)
Expand into Cambodia as a branch office of AD Vietnam
Consider an area strategy through M&As of localcompanies©2018 AEON delight All Rights Reserved

14

Breakdown of YoY Increase in Operating Income
FY2/19 operating income ¥18.5 billion Up ¥1.68 billion YoYItems

YoY change (100 million yen)

① IFM (Expansion of customers)

８② Store design and interior construction

3③ Business expansion in Asia

6

④ Labor-saving and cost improvement

7⑤ Growth of domestic subsidiaries

6①- ③ Total gross profit

30

YoY increase in SG&A

12

YoY increase in operating income

18©2018 AEON delight All Rights Reserved

15

Business Forecasts for FY2/19

FY2/19 Forecasts(Ratio to sales)(100 million yen)

FY2/18 results(Ratio to sales)

Net sales

2,958 （100.0%） 3,050 （100.0%）

Percentage change

103.1%

Operating income

168（5.7%）

185（6.1%）

110.0%

Ordinary income

172（5.8%）

185（6.1%）

107.0%Net income attributableto owners of parent

103（3.5%）110（3.6%）

106.6%©2018 AEON delight All Rights Reserved

16

Toward Realizing the Mid-Term
Management Plan
MarketCompetitive advantage
Labor-saving/highly efficientmodel for large facilitiesJapan

Patrol-type/highly profitablemodel for small andmid-sized facilities

Environment businessStore design andinterior construction

Asia

Highly efficient/highly profitable businessNew business domain

Accelerate growth rate

Smart FM©2018 AEON delight All Rights Reserved 17

Capital Policy
Consolidated payout ratio: Maintain around 30%
Capital efficiency: Maintain around 12% of ROE
EPS (Yen)
ＥＰＳ（円）（Yen）
260（%）
15.0

12.5

12.5

12.3

12.0

200

12.3

12.0

183.9
155.5

140

ＲＯＥ（％）

131.8

194.8

11.0
196.2

10.0

166.2

143.2

5.0

80

0.0
FY2/122011

FY2/132012

FY2/1４2013

FY2/152014

FY2/162015

FY2/172016

FY2/182017©2018 AEON delight All Rights Reserved18

Shareholder Return
Aim for 14 consecutive years of increased dividends since FY2/06（Yen）
Dividend
配当⾦70（％）

Commemo-rative
記念配当
dividend

Dividend forecast

Dividend payout

配当予想（円）(Yen)

配当性向（％）
ratio (%)

40.0

60

35.0

150

30.0

40

25.0

530
20
100

45.0

891517.5

FY2/05
2004 FY2/06
2005 FY2/07
2006 FY2/07
2007

2227

3440

4648

50

525461

63

20.0
15.0
10.0
5.00.0

FY2/082008

FY2/14 2014
FY2/15 2015
FY2/172017
FY2/182018
FY2/19FY2/12 2012
FY2/13 2013
FY2/09 2010
FY2/162016
2009
FY2/11 2011©2018 AEON delight All Rights Reserved19

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 Emiko Ishii
Delight Communication Dept.
TEL 03-6840-5712
Or visit our website at:
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This presentation has been prepared based on the information available as of the date of the presentation (July 4, 2018). The business
forecasts may be revised due to various factors that may arise in the future.