AEON DELIGHT CO. LTD. (9787)
Summary Report of Consolidated Financial Results for the Q1 FY2011

Summary Report of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending February 28, 2011
July 6, 2010
Listed company name:AEON DELIGHT CO., LTD.

Listed exchanges: Tokyo Stock Exchange andOsaka Securities Exchange (First Section)

Stock code:
Representative:

9787(Title)President and CEO

URL http://www.aeondelight.co.jp(Name) Yuiken Tsutsumi

Contact:(Title)General Manager
Delight Communication Dept.

(Name) Masatoshi Sashie TEL +81-6-6260-5632

Planned date for filing of quarterly
financial statements:

Planned date for commencement ofdividend payments

July 14, 2010―

(Amounts of less than one million yen have been rounded down)

1. Consolidated Results for the First Quarter of the Fiscal Year Ending February 28, 2011 (from March
1, 2010 to May 31, 2010)(1) Consolidated Operating Results (cumulative)(Figures expressed in percentages represent year-on-year percentage changes.)

Net Sales

Operating Income

Ordinary Income

Net Income

Millions of yen

Millions of yen％

Millions of yen

％

2,457

0.4

1,366

1.6

2,447

－

1,344

－

Millions of yen％

34,686

(5.6)

2,442

0.1

36,758

－

2,439

－

Three months ended
May 31, 2010
Three months ended
May 31, 2009％

Net Income per
Share

Diluted Net Income
per Share

Yen

Yen

34.43

34.37

33.89

33.85

Three months ended
May 31, 2010
Three months ended
May 31, 2009
(2) Consolidated Financial Position

Total Assets
As of May 31, 2010
As of Feb. 28, 2010
(Reference) Shareholders’ equity

Net Assets

Shareholders’Equity Ratio

Net Assets per
Share

Millions of yen

Millions of yen％

Yen

48,776
48,67032,27731,36465.9
64.2

809.72787.84As of May 31, 2010: 32,121 million yen As of February 28, 2010: 31,253 million yen

2. Dividends(Record Date)
Year Ended February 28, 2010
Year Ending February 28, 2011
Year Ending February 28,
2011(Forecast)End of the
1st Quarter

Dividends per Share
End of the
End of theYear-end
2nd Quarter
3rd Quarter

Annual

Yen

Yen

Yen

Yen

Yen

－
－

12.00

－

15.00

27.00

17.00

－

22.00

39.00

Note 1: Adjustments to dividend forecast made during the first quarter of fiscal 2011: None
Note 2: Dividend forecast at the end of 2nd quarter of FY2011 includes the commemorative dividend of
5 yen per share, under the premise of the merger with CERTO Corp. effective as of Sept. 1,
2010.

1

AEON DELIGHT CO. LTD. (9787)
Summary Report of Consolidated Financial Results for the Q1 FY2011

3. Forecast of Consolidated Results for the Year Ending February 28, 2011 (from March 1, 2010 to
February 28, 2011)(Figures expressed in percentages represent year-on-year percentage changes.)
Operating
Ordinary
Net Income
Net sales
Net Income
IncomeIncomeper Share
Millions ofyen％Millions ofyen％Millions ofyen％Millions of
yen

Yen

％

Six months ending
73.000
0,2
5.000
2,4
5.000
2,9
2.600
0,3
65,54
August 31, 2011
181.000 29,0
Full year
12.050 20,9 12.105 22,1
6.470 18,4
142,00Note 1: Adjustments to consolidated results forecast made during the first quarter of fiscal 2011: None
Note 2: The consolidated results forecast is made under the premise of the merger with CERTO Corp.
effective as of September 1, 2010. The forecast made is the sum of AEON DELIGHT full-year
forecast and the second-half of CERTO Corp. forecast. Forecast for net income per share is
calculated with the number of shares issued due to the merger.
4. Other Remarks(1)

Changes in significant subsidiaries during the period (changes in specified : None
subsidiaries resulting in a change in the scope of consolidation)[Newly included: － (Company name:) Excluded: － (Company name:

)]

(2)

Application of simplified accounting methods and accounting methods: Yes
specific to the preparation of quarterly consolidated financial statements[Note: For more details, please refer to "4. Other Remarks" in the <Qualitative Information and
Financial Statements> section on page 5.](3)

Change in accounting principles and procedures and the methods of presentation used in the
preparation of quarterly consolidated financial statements (matters to be described in the section
for "changes in significant items that constitute the basis for preparing quarterly consolidated
financial statements”)
1)
Change arising from revisions of: Noneaccounting standards
2)
Change due to reasons other than
: Nonethose described in “1)” above[Note: For more details, please refer to "4. Other Remarks" in the <Qualitative Information and
Financial Statements> section on page 5.](4) Number of shares outstanding (common stock)1) Number of shares outstanding at end of period (including treasury stock):
As of May 31, 2010:
41,400,000 As of February 28, 2010:
shares41,400,000
shares2) Number of treasury shares at end of period:
As of May 31, 2010:
1,729,838
shares1,729,838
shares

As of February 28, 2010:

3) Average number of shares during the period (quarterly cumulative):Three months ended
39,670,162 Three months ended May
May 31, 2010:
shares 31, 2010:

39,666,908
shares* Information concerning proper use of financial forecasts and other special instructions
The financial forecast given on the previous page has been prepared on the basis of the information
available at the time this report was published. Actual results may differ from those forecast due to various
factors that may arise in the future.
For information on financial forecasts, please refer to “3. Qualitative Information on Consolidated Financial
Forecast” in the <Qualitative Information and Financial Statements> section on page 4.

2

AEON DELIGHT CO. LTD. (9787)
Summary Report of Consolidated Financial Results for the Q1 FY2011<Qualitative Information and Financial Statements>
1. Qualitative Information on Consolidated Operating Results
During the first quarter (March 1, 2010 to May 31, 2010) of fiscal 2011, there was partial economic
recovery as the result of various economic policy measures, with the decrease in corporate capital
investment coming to a halt. However, customers still have strong inhibitions against renewing capital
investments and remain highly conscious of cutting costs. As a result, the business environment for
the AEON DELIGHT Group (the “Company”) continues to be difficult.
Within this business environment, the Company began to provide new services at facilities for various
purposes, including over 100 amusement facilities operating nationwide, an international exhibit halland police-related facilities in the Kinki area, and government buildings, etc., for courthouses.
In terms of environmental business measures, in response to the Revision of the Rationalization in
Energy Use Law that came into effect in April 2010, the Company developed and began to offer as a
new service Ad-TEMS (Aeon Delight Total Energy Management Service).
At the Company's research and training facilities, Aeon Delight Academy Nagahama, which opened in
March 2010, a varied learning curriculum consisting of training concerning construction technology forsolar energy generation systems, which is gaining attention as a new form of energy, in addition topractical technological training using actual equipment and management training was provided forover 2,000 employees as part of efforts to further improve technology and innovate services.
Overseas, the wholly owned subsidiary, Beijing AEON Co., Ltd., started operations at Beijing Aeon
Store 2 which opened on May 28, 2010 at the JUSCO Chao Bei Joy City Store (Chao Yang Joy City
Shopping Center). In addition, preparations were advanced for starting operations in Guangdong
during the first half of the fiscal year and in Tianjin this autumn.
As a result, the Company posted consolidated net sales of 34,686 million yen (94.4% year-on-year). A
trend of gradual improvement is apparent when sales are compared with the 3rd quarter of theprevious fiscal year (101.9%) and 4th quarter of the previous fiscal year (103.8%), due in part toenvironmental businesses including CO2 reduction and personnel reinforcements for internal
equipment construction.
In terms of improving profitability, the Company posted operating income of 2,442 million yen (100.1%
year-on-year) and ordinary income of 2,457 million yen (100.4% year-on-year). These figures were up
year-on-year thanks to measures continued from the previous fiscal year including the horizontal
integration of the Company’s new cleaning service models and promotion of improved efficiency
through “working style” at patrol centers in the facilities administration business. Net income was
1,366 million yen (101.6% year-on-year) after recording an extraordinary loss of 71 million yen formerger-related expenses.
Results by business segment are described below.
Net sales were 10,416 million yen (96.7% year-on-year) for facility management services, 8,254
million yen (93.8% year-on-year) for security services, and 10,737 million yen (97.2% year-on-year)
for cleaning services. However, reluctance against capital investment continued to be strong and net
sales came in at 4,004 million yen (83.3% year-on-year) for construction work, and for the Building
Management sector overall net sales were 33,413 million yen (94.3% year-on-year).
Net sales from other operations stood at 1,273 million yen (96.1% year-on-year).
The Company has created the “Comprehensive Facility Management Service Business(Comprehensive FMS Business)” in order to respond to the new needs of customers that will comewith future generations based on the strengths and know-how fostered through playing the importantrole of managing facilities, which are very important assets of customers. In this business, we provide
value by accepting consignments from customers to take care of all of their non-core business in order3

AEON DELIGHT CO. LTD. (9787)
Summary Report of Consolidated Financial Results for the Q1 FY2011

to provide an environment that allows customers to focus on work that is essential for their businessstrategy and improve their competitive position.
In order to bring these measures into full effect, a merger contract was entered with CERTO (effective
September 1, 2010). Upon approval of the Board of Directors meeting held on May 20, 2010, theComprehensive FMS Business Promotion Office was established on May 20, 2010. Currently,
expansion of a new service lineup and specific approaches for acquiring new customers are being
considered toward the creation of the Comprehensive FMS Business. In addition, the Company isstarting mutual proposals for customers that already have business relations with both companies,
conducting activities for early exploitation of synergies, and promoting the establishment of aManagement Integration Promotion Committee.
2. Qualitative Information on Consolidated Financial Position
Total assets as of May 31, 2010 increased by 105 million yen (0.2%) compared with the balance atthe end of fiscal 2010 to 48,776 million yen.
This increase is attributable mainly to an increase of 146 million yen in trade notes and accounts
receivable, a decrease of 188 million yen in goodwill amortization, and an increase of 182 million yen
due to the mark-to-market accounting of investment securities.
Liabilities as of May 31, 2010 decreased by 807 million yen (4.7%) compared with the balance at theend of fiscal 2010 to 16,498 million yen. This decrease is attributable mainly to a decrease of 1,014
million yen in income taxes payable, an increase of 908 million yen in provision for bonuses, and adecrease of 544 million yen in other current liabilities.
Net assets as of May 31, 2010 increased by 913 million yen (2.9%) compared with the balance at theend of fiscal 2010 to 32,277 million yen.
This increase is attributable mainly to an increase of 1,366 million yen in retained earnings due toposting of net income for the first quarter, and a decrease of 595 million yen in retained earnings due
to dividend payments.
As a result, the shareholders’ equity ratio as of May 31, 2010 increased by 1.7% to 65.9%, comparedto 64.2% at the end of fiscal 2010.
Cash FlowsThe balance of cash and cash equivalents (hereinafter referred to as “cash”) at May 31, 2010
decreased by 97 million yen (1.2%) compared to the balance at the end of fiscal 2010 to 7,775 million
yen.
Summarized below are cash flows and their underlying factors for fiscal 2011.
(Cash flows from operating activities)
Net cash provided by operating activities during the first quarter was 570 million yen. The major
factors contributing to the net cash inflow were income before income taxes of 2,386 million yen in thefirst quarter, and a 908 million yen provision for the allowance for bonuses, which were partially offset
by corporate income tax payments of 2,087 million yen and a decrease of 564 million yen in otheraccounts payable.
(Cash flows from investing activities)
Net cash used in investing activities during the first quarter was 53 million yen. The principal factors
behind the net cash outflow were an outflow of 203 million yen for the acquisition of tangible andintangible fixed assets, and an inflow of 111 million yen for the disposal of tangible fixed assets.
(Cash flows from financing activities)
Net cash used in financing activities during the first quarter was 613 million yen. The major factor
contributing to the net cash outflow was the dividend payments of 591 million yen.
3. Qualitative Information on Consolidated Financial Forecast
Regarding its earnings projection for the fiscal year ending February 28, 2011, AEON DELIGHT’s
forecast released on April 14, 2010 remains unchanged.

4

AEON DELIGHT CO. LTD. (9787)
Summary Report of Consolidated Financial Results for the Q1 FY2011

4. Other Remarks(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting ina change in the scope of consolidation): None
(2) Simplified accounting methods
Method for estimating credit losses on general receivables
Since the difference between the actual credit loss ratio as of May 31, 2010 and the ratio
computed at the end of fiscal 2010 was deemed insignificant, the actual credit loss ratio at the endof fiscal 2010 was used in estimating credit losses.
(3) Application of accounting methods specific to the preparation of quarterly consolidated financial
statements: None
(4) Changes in accounting principles and procedures, and the methods of presentation used in the
preparation of quarterly consolidated financial statements: None5

AEON DELIGHT CO. LTD. (9787)
Summary Report of Consolidated Financial Results for the Q1 FY2011

5 <Consolidated Financial Statements>(1) <First Quarter Consolidated Balance Sheet>First three months of FY2011
ended May 31, 2010

(millions of yen)
FY2010 ended Feb. 28,
2010

7,866
16,430
6,027
(127)

7,964
16,2845,899(122)

30,19730,026

1,201
284
1,243

1,185
284
1,271

2,729

2,741

11,106589

11,295629

11,696

11,924

2,233
2,062
(143)

2,050
2,068
(141)

4,152
18,57848,776

3,977
18,644
48,670AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets

Total assets

6

AEON DELIGHT CO. LTD. (9787)
Summary Report of Consolidated Financial Results for the Q1 FY2011First three months of FY2011
ended May 31, 2010

FY2010 ended
Feb. 28, 2010

Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Liquidation of claims credit loans payable
Provision for reward for business performance
Provision for directors' bonuses
Other

9,090
40
25
1,176
1,646
25
3,649

8,974
55
25
2,191
738
101
4,194

Total current liabilities

15,655

16,281

Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Other

25
465
39
312

31
577
65
350

Total noncurrent liabilities

842

1,024

16,49817,306

3,238
2,964
26,137
(461)

3,238
2,964
25,366(461)

31,87831,107

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

246
(3)

149
(3)

Total valuation and translation adjustments

242

145

Subscription rights to shares

156

110

32,27731,364

48,776

48,670Liabilities

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

Total net assets

Total liabilities and net assets

7

AEON DELIGHT CO. LTD. (9787)
Summary Report of Consolidated Financial Results for the Q1 FY2011(2) Consolidated Statements of Income<First Quarter>
First three months
of FY2010(March 1, 2009 –May 31, 2009)(millions of yen)First three months
of FY2011(March 1, 2010 –May 31, 2010)

Net sales
Cost of sales

36,75831,456

34,686
29,378Gross profit

5,302

5,308

Selling, general and administrative expenses

2,862

2,865

Operating income

2,439

2,442

Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Other

7
14
5
9

7
14
10
20

Total non-operating income

36

53

5
8
―
14
28

1
13
11
12
38

2,447

2,457

18
8

―
―

Total extraordinary income

26―

Extraordinary loss
Impairment loss
Other
Total extraordinary losses

―
3
3

71
―
71

Income before income taxes and minority interests

2,471

2,386

Income taxes-current

1,053

1,105

Income taxes-deferred

38

(85)

1,092

1,020

34

―

1,344

1,366

Non-operating expenses
Interest expenses
Compensation for accident expenses
Loss on cancellation of company housing
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of allowance for doubtful accounts
Surrender profit of insurance

Total income taxes
Minority interests in income
Net income

8AEON DELIGHT CO. LTD. (9787)
Summary Report of Consolidated Financial Results for the Q1 FY2011(3) <Consolidated Statements of Cash Flow>

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for directors' retirementbfitInterest and dividends income
Interest expenses
Decrease (increase) in notes and accounts receivable-trade
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Decrease (increase) in accounts receivable-other
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investments in subsidiaries resulting in change inflid tiPayments for deposit of subsidiaries and affiliates
Collection of deposit of subsidiaries and affiliates
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Liquidation of claims credit loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange-rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9First three months
of FY2010(March 1, 2009 –May 31, 2009)(millions of yen)First three months
of FY2011(March 1, 2010 –May 31, 2010)

2,471
171
221
961
6
(9)
(21)
5
69
504
(607)
(18)
(87)
3,668
22
(2)
(2,328)
1,359

2,386
155
188
908
(111)
(25)
(22)
1
(232)
115
(564)
(46)
(117)
2,635
23
(1)
(2,087)
570

48
(113)
10
(27)
284
(22,500)
25,000
52
2,755

―
(122)
111
(81)
―
(18,500)
18,500
38
(53)

(100)
(22)
(1,125)(476)(4)(1,729)
3
2,388
6,970
9,358

(15)
(6)
―
(591)
(1)
(613)
(0)
(97)
7,873
7,775

AEON DELIGHT CO. LTD. (9787)
Summary Report of Consolidated Financial Results for the Q1 FY2011(4) Note on the going concern assumption: None
(5) Note on significant changes in shareholders’ equity: None10