Financial Results for the Six Months Ended
August 31, 2016

Ippei Nakayama, President and CEO
October 6, 2016©2016 Aeon Delight All Rights Reserved

Contents

１

Financial Report for the First Half of FY2/17

２

Initiatives for the Priority Management Issues

3

Initiatives for the Second Half of FY2/17©2016 Aeon Delight All Rights Reserved1Consolidated Income Statement
Increase in sales and profits, and profits reached a new record high.
FY2/16 2Q
Summary of consolidated
profit and loss statement(Unit: 100 million yen, %)ResultPct. to netsales(%)

FY2/17 2Q

YoY Change

ResultPct. to netsales(%)

Difference

YoY (%)Net sales

1,427

100.0%

1,514

100.0%

86106.0%

Gross profit

185

13.0%

195

12.9%

9105.1%

SG&A

1047.3%1107.3%5105.4%

Operating income

81

5.7%

85

5.6%

3104.7%

Ordinary income

81

5.7%

85

5.6%

3104.5%

Net income
attributable to ownersof parent

463.3%

533.5%

6114.1%©2016 Aeon Delight All Rights Reserved

2

Sales by Segment
Increase in sales in six businesses
Double digit growth in Cleaning services ;114.4% YoY, owing partly to the contribution of sales
by Hakuseisha

Consolidated(100 million yen)

FY2/16 2Q

FY2/17 2Q

ResultResult

YoY (%)

Facilities management

243

254

104.3%

Cleaning services

233

267

114.4%

Security services

186

204

109.7%

Construction work

262

265

101.3%

Support services

8694108.8%

Materials/supplies sourcing services

245

258

105.4%

Vending machine services

169

169

99.7%

1,427

1,514

106.0%

Total sales©2016 Aeon Delight All Rights Reserved3Consolidated Balance Sheet
Liabilities and netassets(100 million yen)

End ofFY2/17 1H

YoYDifferen
ce

448

481

33

Fixedliabilities

2528

2

Totalliabilities

473

510

36

Shareholder’sequity

810

851

40

5

Total net assets

8408773774

Total liabilities
and net assets

1,313

1,387

74

End of
FY2/17 1H

YoY
Differen
ce

1,056

1,125

69

Current
liabilities

Tangible fixed
assets7077

6Intangible
fixed assets

10399▲4Investments,
etc.

8184

2

Fixed assets

256262

Total assets

1,313

1,387

Assets(100 million yen)

End of
FY2/16

Current assets

End of
FY2/16©2016 Aeon Delight All Rights Reserved

4Consolidated Cash Flow StatementAssets(100 million yen)

FY2/162Q

FY2/172Q

50

YoY
Difference

営業ＣＦ
Operating CF

投資ＣＦ
Investing CF

財務ＣＦFinancing CF

4030

Cash flows fromoperating activities

104737

Cash flows frominvesting activities▲222143

20
100

Cash flows fromfinancing activities
Cash and cash
equivalents at the end ofyear▲13▲103(10)(20)

128251122(30)FY2/16 2Q

FY2/17 2Q©2016 Aeon Delight All Rights Reserved

5Contents

1

Financial Report for the First Half of FY2/172

Initiatives for the Priority Management Issues

3

Initiatives for the Second Half of FY2/17©2016 Aeon Delight All Rights Reserved

6Efforts for Dealing with Priority Management Issues

Environment

Deflation in the domestic
economy has not been
overcome

EffectCost reduction inenterprises

Initiative

IFM

Lower price strategy ofenterprises

Domestic labor shortage

Decline in domestic
population

Labor saving
Stagnation in
the domestic FM market

Growth of the Asianmarket

Shift to Asia
Growth of Asian enterprises
and the FM market©2016 Aeon Delight All Rights Reserved72-1 IFM (Integrated Facility Management)
We will support client companies in improving
competitiveness using the FM strategy which isbased on the client company’s management
strategy.

IFM

TargetedCustomers(Management Strategy)

Management Domain

To become acustomer’s FM
partnerManagement Division(General Affairs andAdministration)

A full range of services frommanagement to operation

Integrated service

IFM
AEON Delight (FM Proposal)
VendorManagement
Evaluation andGuidance

Formulation andManagement ofImprovement PlanBCP

Cost Reduction
Planning

Operation Domain

AEON Delight, Affiliated Companies and Collaborating Firms©2016 Aeon Delight All Rights ReservedDormitoryAdministration

Uniform

Conference
Room
Preparations

MICE

BTM

On-siteDeliveryHousekeeping

Catering

Personnel andGeneral Affairs
OfficeWorkplace

Vending
Machines

Materials

Building
Construction

EnergyConservation

Security

Cleaning

Equipment

Workplace proposals andexecution,equipment management,
cleaning, security, building
construction, materials, vending
machines, etc.

Facilities
Budget Control

EnergyManagement

Support for designingfacility strategies82-2 Labor Saving
1

Save personnel and labor by improving work efficiency and operational efficiency(1) Formulate an original cleaning manual for facilities considering the characteristics of eachfacility(2) Utilize smartphone application in equipment management(3) Implement multitasking via attendants

2

Save personnel and labor via technological innovations(1) Introduce a floor coating agent with enhanced durability(2) Introduce a cleaning robot (experimental stages)

Improve productivity by utilizing the app“Butsugyo-tsuu”(3) Adopt IoT for equipment inspections
Currently testing a simple cleaning robot
at the AEON Mall Makuharishintoshin

An attendant playing an active role in public facilities
We are planning it for a new management style for facilities.
©2016 Aeon Delight All Rights Reserved9

2-3 Shift to Asia
Expanding Business in China
Aim to be listed among the top 10 in the Chinese property management industry in 2018!!

Customer Strategies(1) Mid to high-end facilities requiring high quality services(2) Acquire FM business customers with focusing on redeveloping areas
Initiatives■ Standardize cleaning business by analyzing operation units■ Advanced measures for Security Services Act in China■ Focus on educating and training personnel for sustainable growth
Continue training visits to Japan for executive staff (4th time),and develop personnel through academic-industrial collaboration with Suzhou Industrial
Park Institute of Vocational Technology and Hubei University©2016 Aeon Delight All Rights Reserved102-3 Shift to Asia
Expanding Business in China (Customer Strategy)
1

Mid to high-end facilities requiring high quality services■ 5 important major markets to conquer:
Mid to high-end residences  Mid to high-end shopping centers  Retirement homes, hospitals,
and nursing facilities  High-end factories  Transportation infrastructure

Examples of properties the company was entrusted with2Acquire FM business customers with focusing on redeveloping areas
Get involved in the planning of a redevelopment project, New City High Speed
Rail Project, which will span 28 square kilometers, by establishing a jointcompany in Suzhou©2016 Aeon Delight All Rights Reserved112-3 Shift to Asia
● Locations already ventured● Locations with plans to venture● Major locations

From spots to areas
Building bases in major areas isprogressing smoothly.
M&A to expand into new business areas isunder consideration.
(100 million yen)25

■AD China (including Tianjin)■ AD Jiangsu ■ Wuhan Xiaozhu20Wuhan
Xiaozhu

Northern and Eastern
China AreaShanghai

15105

Central and SouthernChina Area02015

AD Jiangsu

2016◆ China: Changes in Semi Annual Sales for Each Company©2016 Aeon Delight All Rights Reserved

12

Contents

1

Financial Report for the First Half of FY2/17

2

Initiatives for the Priority Management Issues

3

Initiatives for the Second Half of FY2/17©2016 Aeon Delight All Rights Reserved

13Measures for 2H of FY2/17
YoY sales target

Priority measures(million yen)＋82

Nonconsolidated

Implementation of priority measures for sales activity, construction andmaterials/supplies sourcing services

Sales activity

Acquisition of new contracts＋15

Construction

Construction for tenant changes and interior construction at commercial
facilities＋50

Materials/supplies sourcing

Consolidation of materials and supplies sourcing of Aeon Group companies,
Packaging materials for Top Value＋17（Domestic subsidiary）
Strong sales in business support services, including the event business andrental conference rooms＋4

KAJITAKU

Strengthening of sales activity to major customers＋9

Hakuseisha

Contribution from consolidation of Hakuseisha＋35

AEON Compass（Overseas subsidiary）Overseas

Increase in sales in overseas countries where the company does business(China, Malaysia, Vietnam)

Others＋20＋3©2016 Aeon Delight All Rights Reserved

14

Business Forecast for FY2/17

FY2/17
Summary of Consolidated
income statement(100 million yen, %)FY2/16

Pct. tonet sales
（％）

YoY
(%)

3,050

100.0%

108.5%

2,810

100.0%

Operating income

175

5.7%

104.7%

167

5.9%

Ordinary income

175

5.7%

104.9%

166

5.9%

Net income attributableto owners of parent

1003.3%103.5%

963.4%Net sales

ResultResult

Pct. tonet sales（％）©2016 Aeon Delight All Rights Reserved

15

Shareholder Return
Aim for twelve consecutive years of increased dividends since FY2/06
Fiscalyear

FY2/05

FY2/06

FY2/07

FY2/08

FY2/09FY2/10FY2/11

FY2/12

FY2/13

FY2/14

FY2/15

FY2/16

FY2/17

Dividend(Yen)

8.0

9.0

15.0

17.5

22.0

27.0

39.0

40.0

46.0

48.0

50.0

52.0

55.0

Payoutratio (%)

38.4

28.0

19.8

15.9

17.9

19.6

27.4

30.3

32.1

30.9

30.1

28.3

28.9

Dividend
配当金（Yen）

Commemorative
記念配当dividendDividend forecast

配当予想（円）(yen)Payoutratio (%)
配当性向（％）（％）

6055

40.05030.040275302010089

FY2/052004

FY2/06
2005

1517.522273440464850

20.05228（※）

10.00.0

FY2/07 FY2/08
2006
2007 FY2/09
2008

FY2/10 2010
FY2/11 2011
FY2/12 FY2/13
FY2/14 2014
FY2/15 FY2/16
20092012 20132015 FY2/17
2016*Interim dividend of 28 yen includes the commemorative dividend of 1 yen.

©2016 Aeon Delight All Rights Reserved16

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,
and performance 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 specificallystated otherwise.
◇ 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 Yoshiyuki 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 (October 5, 2016). The
business forecasts may be revised due to various factors that may arise in the future.

©2016 Aeon Delight All Rights Reserved