Financial Results
for the First Half of the Year Ending February 2009

October 8-9, 2008

AEON Delight Co., Ltd.
Yuiken Tsutsumi, President & CEO
1

1. Financial Results for 1H FY2008

2

Highlights

Record-high sales and profits✔ Topped beginning-of-year forecast to achieve YoY
sales/profit growth
Net sales: +8.1%, OP: +28.9%✔ Driven by strategic focus on “profits,”
Both gross and OP margins increased
Gross margin: 13.7%→14.4% OP margin: 5.8%→6.9%✔ First overseas foothold established in Beijing
Looking at Shandong
3(1) Statement of Income (Summary)Millions of Yen
Six months
ended Aug.
‘07

% to netsales

Six months
ended Aug.
‘08

% to netsales

YoY change(%)

Difference

Net sales

67,766100.0

73,265

100.0

108.1

5,498

Operatingincome

3,935

5.8

5,073

6.9

128.9

1,138

Ordinary
income

3,833

5.7

4,979

6.8

129.9

1,145

Net income

2,080

3.1

2,702

3.7

129.9

622

4

(2) Segment Sales◇ Brisk showings across the board, thanks toa greater emphasis on full-line services

1H FY2007
Other 2.3％
2.3％

Millions of Yen
Six months
Six months
YoY change
Difference
ended Aug. '07 ended Aug. '08(%)(1) Building Maintenance
Facility
Management (FM)Preservation of
security (PS)19,153

20,912

109.2

1,759

16,915

18,255

107.9

1,339

Cleaning

20,25820,684102.1

426

Construction

9,904

10,496106.0

591

Building MaintenanceTotal

66,232

70,348

106.2

4,116

(2) Other
Other Businesses(1)+(2)

1,533

2,916

190.2

1,382

67,76673,265

108.1

5,498

Construction
14.6％
14.6％
Cleaning
29.9％
29.9％

FM
28.3％
28.3％
PS
25.0％
25.0％

1H FY2008
Other 4.0％
4.0％

Construction
14.3％
14.3％
Cleaning
28.2％
28.2％

FM
28.5％
28.5％
PS
24.9％
24.9％

◇ “Other Businesses” include condominium management, land / building leases, technical training, andtemp staff services.
5(3) Balance Sheets (Summary)Millions of Yen

Year ended
Feb. '08

Six months
ended Aug. '08

Difference

Current assets

28,764

31,6282,864

Fixed assets

18,65318,459-194

Tangible fixed
assets

1,885

1,944

59

Intangible
fixed assets
Investments
and other assets

Total assets

6

Year ended
Feb. '08

Six months
ended Aug. '08

Difference

Current
liabilities

22,533

24,100

1,566Long-term
liabilities

2,395

933

-1,461

Total liabilities

24,92925,034

104

Shareholders'equity22,512

24,817

2,305

-24

234

259

22,48825,0532,564

47,41850,0872,669

Valuation andtranslation
adjustment

13,356

12,975

-381

3,411

3,539

127 Total net assets

47,41850,087

Total liabilities

2,669 and net assets

(4) Statements of Cash Flows
Millions of Yen
Six months ended
Aug. '07

Six months ended
Aug. '08

Year ended Feb. '08

2,711
-673
-3,096

3,906-1,664-2,646

6,472-2,190-6,094-1,058-402-1,811

9,469

7,657

9,469

8,410

7,255

7,657

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at
beginning of period
Cash and cash equivalents at end of
first half

Factors behind changes
Operating activities

Investing activities○ Net income before income taxes⇒ + ¥4,863 million○ Acquisition and sale of tangible
fixed assets⇒ - ¥138 million○ Acquisition of intangible fixed assets⇒ - ¥80 million○ Notes and accounts receivable⇒ - ¥1,458 million○ Notes and accounts payable⇒ + ¥2,189 million○ Income tax payment⇒ - ¥2,579 million○ Payment and refund of affiliates’
deposits for consumption⇒ - ¥1,500 million

Financing activities○ Return of funds for liquidation ofreceivables⇒ - ¥2,250 million○ Dividend payment⇒ - ¥396 million

7(5) New Projects
1. Non-AEON Group (New)

Pasar Makuhari

Ginga Mall Hanamaki

National Confectionary Exposition

AEON Odaka Shopping Mall

AEON Nayoro Shopping Mall

2. AEON Group (New)AEON Kamisato Shopping Mall

3. AEON Bank – Entrusted with the installation of ATMs instore branches8(6) New Projects in Japan
Higher penetration (in terms of floor area) intolarge commercial complexes!
New contracts won with
AEON LakeTown, Japan’slargest eco-shopping mall,and other large commercial
complexes

Improving our reputation as
a commercial facility management
expert led to contracts with
non-Group customers
9

2. Basic Strategies, Policies for 2H

10

(1) Expanding our Unified Group through M&A
Leveraging group strength to enhance “corporate value” andmove on to the next growth stage
Expert in training thenext generation ofengineers
Expert security
service provider
for commercial
complexes

Expert in back-office support

AEON Delight
Academy Co., Ltd.

AEON Delight
Towers Co., Ltd.

AEON Delight
Seres Co., Ltd.

AEON Delight
Security Co., Ltd.
A to Z Service Co., Ltd.

Professional in maintenance ofsmall commercial complexes

Expert in financial
facilities
management

Kankyouseibi Co., Ltd.

Leading the building maintenance business in northern
Kanto. Expert in community-based services
Stock acquired in October 2008

11(2) Overseas Strategies(1) Keeping up the momentumof AEON’s new opening plan,
expand from Beijing toShandong(2) Accelerate Asian strategies(other regions in China, SEA)Name
AEON Delight Beijing Building Maintenance Co., Ltd.
Location
Changpinku, Beijing
Representative Tetsuo Ohbayashi, Chairman & President
Established
November 2007
Ownership
100% owned by AEON Delight Co., Ltd.
Line of business Building management

AEON Beijing International Co.,
Co., Ltd.

Beijing, Shandong (North China)
12

Asian market

(3) Progress in the “Profit Focus” Strategy
1) “Change the way we work” “Enhance productivity”“Put the cleaning business at the core”– Experiment on direct-managed services began2) Consolidate subcontractors
3) Focus on customers who put a high priority on“Balance between quality and price”
Review of operations led to improved returns on
existing projects
利益率推移（2006年度～2008年度上期）
Profitmargin (FY2006 – 1H FY2008)
10

16
15

Gr o ss mar gin , 1 3 .7

Gr o ss mar gin , 1 4 .4

Gr o ss mar gin , 1 3 .7

14

9
8

13

7

％ 12

6

11
10

O P mar gin , 5 .8

Ne t pr o fit mar gin ,
3 .1

9
8

Ne t pr o fit mar gin ,3 .3

1H FY07

5

O P mar gin , 6 .9

O P mar gin , 6 .3

2H FY07

4
Ne t pr o fit mar gin ,3
3 .6
2
1H FY08

13(4) Steps toward Making Cleaning a Core Business
Programs in 2H/FY08
1Q

2Q

Set about creating AD’s
cleaning services model

Cleaning’s earnings
structure analyzed indetailData gathering

4Q

3Q
Build a newcleaning services model

Finalize AD cleaning
specs.
Compile manuals

Growth scenario
FY2008FY2009Experiment with directdirectmanaged services○ Validate a truly profitable model○ Establish manman-hour productivity
measures○ Establish AD’
AD’s cleaning services
model

14

FY2010
Expand share in commercial
complex services

Strategic outsourcing

Apply knowknow-how to other types offacilities

(5) Reducing Environmental Stress

Maintenance services friendly to the global
environment1) CO２ Reduction Dept. established sustainablereduction plans made possible by “visualizing”
operations
2) Energy-saving LED lighting
offered / introduced
Environmental stress reductionplans presented to largecommercial complexes

AEON Tomakomai Shopping center(near site of the G8 Summit)

Floor guide using LED light guiding panels

3) Electrical vehicles cllect shopping carts at AEON
LakeTown
Also reducing CO２ emissions from routine work
15(6) Customized Solutions
Versatile solution provider in demandContinued pursuit of safety, security, comfort, and cleanlinessPremium baby lounge
Basic concept

1) “Baby lounge” plan
Cleanlinessleanliness
Comfort and cleanliness meeting
3C+S
customer requirements
Convenience Comfortable“Premium baby lounge,” rather
Securitythan a mere “baby area”
2) Security guards on Segways
For efficient patrolling of large facilities
Safety and security for all customers
Segway electric vehicle16

(7) Quality Management

For greater “safety and security”
1) Special task force checks the quality of our services
at facilities around the country- Data sent to inspection team for analysis and verification- “Zero accident” campaign for improved quality

2) Manufacturers’ “5S” made into a “habit”
AD 5S campaign to eliminate “muri(overburdened), mura (uneven), andmuda (wasteful)” operations
Greater efficiency in routine work,
improved quality

整 理
Seiri

清 掃
Seisou清 潔
Seiketsu“Know-hows”
delivered

Eliminatemuri,
ムリ・ムラ・ムダ
mura,の追放
muda

整 頓
Seiton習 慣ShukanＡＤ５Ｓ

Higher work
efficiency
仕事の効率化
品質の向上
Improved
quality17(8) New HR Development Center for Higher Quality
Construction of an advanced training and researchfacility begun in the Nagahama Science Park
AEON Delight Academy
Nagahama (provisional name)◇ Symbol of AEON Group’s commitment to “global warming prevention”◇ Develop / train HRs through industry-government-university cooperation◇ R&D and practical application of chemical-free, energy-saving
technologies◇ Operations development, building an advanced management model

18

(9) CSR
1. CO２ counters donated to elementary/junior highschools
100 each to 7 schools aroundthe country
Total of 700 units donatedConverts various energy-consuming
activities into CO2 emission levels

Environmental
education for children

Class in session at elementary school

2. AEON Clean Campaign
Many
Many employees,
employees, including
including 15
15 directors,
directors, joined
joinedaa campaign
campaign at
at Kehi-no-Matsubara,
Kehi-no-Matsubara, Fukui
Fukui

19

(10) FY08 Earnings Forecast
Millions of Yen
Year ending
Feb. '09(revised
forecast)% to netsales

Beginning% to net Year ended % to net
of-yearFeb '08
sales
sales
forecast

YoY change
Amount%Net sales

147,000

100.0

145,000

100.0

137,519

100.0

9,481

106.9%

Operatingincome

9,900

6.7

9,100

6.3

8,330

6.1

1,570

118.8%

Ordinary
income

9,750

6.6

9,000

6.2

8,186

6.0

1,564

119.1%Net income

5,150

3.5

4,600

3.2

4,379

3.2

771

117.6%

20

(11) Profit Distribution

2.5 yen dividend increase in 1H,
backed by brisk performance
Dividend per share

Ordinary
dividend
Annualdividend(total)

FY2007 results

FY2008 forecast

1H

2H

1H

2H

¥7.5

¥10

¥10

¥10

¥17.5

¥20

※ Dividend for 1H/FY07 above is calculated on the assumption that stock split was executed at the beginning of FY07.

21

3. Progress in the Medium-term Management Plan

22

Financial Targets for FY2010
PL

Net Sales
x 1.6 vs. ‘06

Ordinary Income¥175.0 bn.+x 2.7 vs. ‘06

Net Income
x 2.6 vs. ‘06¥15.0 bn.

¥7.5 bn.

¥147.0 bn.
¥111.1bn.

¥9,750 mil.

¥73.2 bn.
(1H)
FY2006¥5,150 mil.
¥2,948 mil.

¥5,485mil.

FY2008(forecast)

(1)
(2)
(3)
(4)

FY2010(ending Feb. 2011)

Net sales
Ordinary income
Net income
EPS¥4,979 mil.
(1H)
FY2006

FY2008(forecast)

FY2010(ending Feb. 2011)¥2,700 mil.
(1H)
FY2006FY2010(ending Feb. 2011)

FY2008 forecast

FY2010 targets¥147,000 mil.
¥9,750 mil.
¥5,150 mil.
¥129.8¥175,000 mil.+¥15,000 mil.
¥7,500 mil.
¥189.1The sizes of the bars above are not to scale.
Figures for ordinary income, net income, and EPS above are median values.

23

Reference: Corporate Data

24

FY2008(forecast)(1) The Delight Way ― Management Principles ―AEON Delight continues to create“environmental value” for its customers.
Delight

Comfort

SafetyEnvironment

25(2) The Delight Way ― Vision ―A pioneer in “environmental value” creation,
constantly evolving safety and comfort.

26

(3) Profit and Loss Analysis
1. Five-year summary (graphs)
160,000
140,000
120,000
100,000
80,00060,00040,00020,0000137,519

Millions of Yen
6,000

12,000147,000

9,900

10,000111,170

8,330

65,323

5,576

6,000
4,000

2,949

2,504

2006.2

2007.2

2008.2

2,000
1,000

0

2009.2

2,998

3,000

2,000

2005.2

4,379

4,000

8,000

54,665

5,150
5,000

860

1,324

0

2005.2

2006.2

2007.2

2008.2

2009.2

2005.2

2006.2

Operating income

Net sales2007.2

Net sales
OperatingincomeOrdinary
incomeNet income

2009.2

Net income

2. Five-year summary (figures)
FY2004

20082

Millions of Yen
FY2005

FY2006

FY2007

FY2008 (forecast)

% YoY

% YoY

% YoY

% YoY

% YoY

98.1%

62,323 114.0%

111,170 178.4%

137,519 123.7%

147,000 106.9%

2,504 148.5%

2,949 117.8%

5,576 189.1%

8,330 149.4%

9,900 118.8%

2,511 148.0%

2,953 117.6%

5,485 185.7%

8,186 149.2%

9,750 119.1%

860 581.1%

1,324 154.0%

2,998 226.4%

4,379 146.1%

5,150 117.6%

FY2007

1H FY2008

54,66527(4) Key Management Indicators(Reference)

FY2005SixmonthsSix
21.00% months¥110.40¥68.12

EPS¥64.26¥151.17

ROE

8.29%

16.85%

ROA

10.70%

13.90%

17.10% months

5.54%

Ratio of ordinary income to net
sales

4.74%

4.93%

6.00%

6.80%

Ratio of net income to net sales

2.11%

2.70%

3.20%

3.69%

2.26 times

2.83 times

Shareholders' equity ratio

53.69%

39.87%

47.40%

49.87%Net assets per share¥825.28¥966.41¥566.90¥6.30

Total asset turnover28

FY2006Six

Six

2.90 times months

11.39%

1.50 times

(5) Employees
1. Number of employees
Year
GenderRegular employees

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008Year-end

Year-end

Year-end

Year-end

Year-end

1H end

Male

1,898

2,306

2,396

3,810

4,013

3,884

Female

100

157

184

367

378

272

1,998

2,463

2,580

4,177

4,391

4,156

Contract employees Male

887

745

606

1,094

1,379

1,351

Contract employees Female
for specialized
Subtotalduties

176

131

132

133

136

134

1,063

876

738

1,227

1,515

1,485

Part-time workers

3,332

2,499

2,444

2,834

2,652

2,547

6,393

5,838

5,762

8,238

8,558

8,188

Subtotal

Total

2. Average age
Year

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008Year-end

Year-end

Year-end

Year-end

Year-end

1H endAverage age

43.1

41.8

42.0

43.8

45.8

45.7

◇ The above data are current as of August 31, 2008. Numbers for part-time workers are calculated by dividing total monthly working hours by 172
hours.
The total number of employees is 10,766, with 5,125 part-time workers and 5,641 regular / contract / specialized-duty contract employees.

29(6) Shareholders / Stock Price
1. Major shareholders (Top 10)

2. Shareholders by type
Total number of shares outstanding: 414 million

Place
1

No. of shares owne Percentage
MYCAL Corp.

23,261,800

56.19

2

Japan Trustee Services Bank, Ltd.

1,796,300

4.34

3

AEON Delight Co., Ltd. (self-owned)

1,729,519

4.18

4State Street Bank and Trust Company

1,166,122

2.82

5

The Chase Manhattan Bank N.A. London SL Omnibus Account729,900

1.76

6

AEON Delight Employee Stock Ownership Association

617,600

1.49

7

Trust & Custody Services Bank, Ltd.

583,400

1.41

8

AEON Co., Ltd.

560,800

1.35

9

The Master Trust Bank of Japan, Ltd. (trust account)

550,100

1.33

10

Japan Trustee Services Bank, Ltd.

419,400

1.01

SelfSelfowned4.2%

Securities firms
0.3%

Financial
institutions
11.0%
Individuals
and others
8.7%
Foreigncorporations
16.7%

Other
Japanese
corporations
59.2%

3. Stock price (March 1, 2007 – August 31, 2008)
400,000

3,000
2,500
2,000

200,000

1,500
1,000
500

0
0
March 2007 2007年5月
May 2007
August 2007 2007年10月
October 2007 2008年1月
January 2008 2008年3月
March 2008 2008年6月
June 2008 2008年8月
August 20082007年3月
2007年8月◇ The above data is current as of August 31, 2008.
◇ As of December 1, 2007, AEON Delight executed a two-for-one stock split.

30

High

¥2,540/share(July 28, 2008)

Low(beforestock
split)¥3,000/share(March 5,
2007)

345,500
Largestshares (Junevolume20, 2008)

Disclaimer, etc.
■ This material contains certain statements describing thefuture plans, strategies, and performance of AEON Delight.
◇ These statements are not based solely on historical facts, but rather on
assumptions and estimates based on currently available information.
Because of this, AEON Delight’s actual performance may differ
materially from the assumptions and estimates supplied.

■ Unless otherwise stated, the following applies to data supplied.
◇ All numbers are on a consolidated basis.
◇ Any fraction below one million yen is disregarded.
◇ Percentages are rounded to one decimal place.
◇ The accounting period of AEON Delight ends on the last day
of February. This material is for the first six months of the year
ending February 28, 2009.

31

Thank you very much for your kind attention.
Comments and inquiries should be directed to the following:
AEON Delight Co., Ltd. (Stock code: 9787)
IR Contact

Masatoshi Sashie
Delight Communications Department
TEL +81-6-6260-5632
FAX +81-6-6260-5653
Or visit our website at:
http://www.aeondelight.co.jp※ When sending a fax, please include
your name and contact details.

This presentation has been prepared using the information available as of the dates of the presentation (October 8-9,
2008). The earnings forecast contained herein may be revised due to unforeseen factors that may arise in the future.

32