Supplementary Information on the Financial
Results for the Three Months Ended May 31, 2019

AEON DELIGHT CO., LTD.
July 5, 2019

Consolidated Income Statements(100 million yen)
Difference

Percentagechange790 （100.0%）26

103.5%

93 （12.2%）

96 （12.2%）

2

103.1%

SG&A expenses

55（7.3%）

58（7.4%）

2

105.0%

Operating income

37（5.0%）

38（4.8%）

0100.4%

Ordinary income

38（5.0%）

38（4.8%）

0100.2%Net income attributableto owners of parent

20（2.7%）

20（2.6%）

0100.2%

FY2/18 1Q(Ration to sales)

FY2/19 1Q(Ration to sales)

Net sales

763 （100.0%）

Gross profit©2019 AEON Delight All Rights Reserved 2

[Reference] Consolidated Income Statement excluding KAJITAKU (Same Scale Comparison)
Net sales increased due to the increase of new customers and the growth of overseas
subsidiaries.
Operating income decreased due to the impact of the delay in the reversal of allowances
for personnel expenses.

〈Ref.〉(100 million yen)

FY2/18 1Q(Ration to sales)

FY2/19 1Q(Ration to sales)

Net sales

743 （100.0%）775 （100.0%）

32

104.4%

Gross profit

97 （13.1%）

98 （12.7%）

1

101.3%

SG&A expenses

53（7.2%）

55（7.2%）

2

105.0%

Operating income

44（6.0%）

43（5.6%）▲1

96.9%

Percentage
Difference change*Please refer to the "Notice of Disclosure of Investigation Report by Special Investigation Committee and Future Response" dated June
28, 2019 for the matters regarding the accounting treatment by KAJITAKU, our consolidated subsidiary.

©2019 AEON Delight All Rights Reserved 3

Target for FY2/20(100 million yen)

FY2/19 Result(Ratio to sales)

FY2/20 Forecast(Ratio to sales)

Net sales

3,029(100.0%)3,150(100.0%)104.0%

Operating income

130(4.3%)

180(5.7%)

138.1%

Ordinary income

133(4.4%)

180(5.7%)

134.7%Net income attributableto owners of parent

64(2.1%)

108(3.4%)

168.4%

Percentage change©2019 AEON Delight All Rights Reserved 4

Target Achievement Scenario for Income
Aim to achieve the operating income target
by the growth of the parent company and domestic and overseas subsidiaries(100 million yen)

200

Operating income
excluding KAJITAKU
170

160

KAJITAKU
Operating loss forecast
5

Operating income
130

120

OperatingAccumulated
Income target
operating income
180
15Effect amount of
KAJITAKU
170

80“Major Initiatives by Area”
toward achieving the operating
income target are presented fromthe next section

40

0
FY2/19*Provisions are provided for losses on past transactions of KAJITAKU.

FY2/20©2019 AEON Delight All Rights Reserved 5

FY2/20 Key Initiatives by Area
Maintain strong trend and steadily expand FM businessin Japan, China and ASEAN

Japan● Establish Regional Economic Zones in each area to help solve the
3 society issues of safety, labor shortage, and the environment

China

ASEAN

● Accelerating business expansion through “One Aeon Delight Strategy”● Expanding business in Indonesia through SJS, which was acquiredin the previous fiscal year

©2019 AEON Delight All Rights Reserved 6

Major Initiatives for the Three Months Ended March 31, 2019１

Safety● Promoted direct management of maintenance and inspection services to enhance technicalcapabilities as a group of specialists in facility management● Research and development of power storage systems using renewable energy as part of BCP measures

2

Labor shortage● Verification of open systems for equipment using building automation to build AD Platform● Expanded orders by improving communication with customers in each region through management ofbranch offices● 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● Promoted demonstration of renewable energy power sharing using blockchain technology to establish
energy management services©2019 AEON Delight All Rights Reserved 7

Domestic : Establishment of Community-based Branch Office Management Structure

Realize management on a regional basis at the initiative of branch offices tocreate a Regional Economic Zones

Redefine the role of Branch Managers
along with restructuring branch office functions● Build a trusting relationships with customers, government, business communityand organizations as a manager● Create a regional economic zones and build a foundation for business growthin the region

Established a branch office management structure by
structural reform as of March 1, 2019©2019 AEON Delight All Rights Reserved 8

Domestic : Branch Management ① Expansion of Orders in Each Area throughImprovement in Communication
Expansion of orders through improvement in communication with customers in each area

Activate communication with customers
And expand orders for building maintenance business through stronger relationships(Example of Efforts in 2019) Organizational Restructuring of the Kyushu Branch・ Established a regional system by prefecture.
Kyushu-Minami Branch, which previously had jurisdiction over Kumamoto, Miyazaki, andKagoshima, was dissolved and "Sales Offices" were newly established in each prefecture.
・Promoted young human resources who were in charge at work-sites as Sales
Office Managers

Contact frequency increased and are well received by customers in each prefecture (also has
positive impact numerically)
Raised the morale of young human resources and led to organizational activation.
We will strengthen relationships with local subcontractors
Expand to other branch offices as a good example©2019 AEON Delight All Rights Reserved 9

Domestic : Branch Management ② Creation of Regional Economic Zones in
the Construction Work

Newly establish “Construction division” in Kanto and Kansai branch offices
Improve community-based contract system in cooperation with the existing easternJapan and western Japan Construction divisions

FY2/19 : Strengthened the structure of planning and designing field
Accuracy of contract for work improved at the proposal of upstream. Orders forlarge scale constructions expanded from the 2nd half

FY2/20 : Improve the structure capable of undertaking various renovation
works in close relation to the community
Expand orders for various renovation works by strengthening relationships
with local subcontractors

Making steady progress toward the creation of regional
economic community in the Construction work
©2019 AEON Delight All Rights Reserved 10

Domestic : Measures for labor shortages ① Establishment of a new facility management modelR&D aimed at building an AEON DELIGHT (AD) Platform● System that enables experts in various fields to efficiently provide services[Customer]

Image data from the facility information center
External Information (weather, disaster, etc.)

Proposing optimal solutions
for individual issues

Verification of open systems
for equipment utilizing
building automation, which isthe foundation of AD platform

AD Platform
Data collection andstorageAnalysis andprocessing by AI

Optimum solution

Practical application
Efficiency, quality improvement

Maintenance and inspection data from the distributed management system "Delight Viewer"

in FY2/20[Service network]

Partner companies and alliancepartners

AEON DELIGHT Group©2019 AEON Delight All Rights Reserved 11

Domestic: Efforts to resolve labor shortages-Strengthening non-on-site management

Promote initiatives to eliminate labor shortages in collaboration with Secom Co., Ltd.
Expanding service provision to small and medium-sized offices by strengthening nonon-site management

Collaboration began in April 2018. Building a labor-saving model for security
services in FY2/19.
Continue to verify further labor saving in facility management operations

Strengthen nonresident management with using strengths of both companies (SECOM:
Security, Aeon Delight: Facility Management) and expand services to small and mediumsized offices. Already started this project in the Kanto region.
©2019 AEON Delight All Rights Reserved 12

Domestic: Initiatives to Reduce Safety and Environmental Impact

Contributing to the Achievement of the Aeon Group Vision as a company
responsible for the “safety” and “environment” of facilities

AEON Group

Aeon
Manifesto on
the Preventionof Global
Warming(2008-2011)

AEON Eco Project (2012-2020)

Reducecampaign

Createcampaign

Protect
campaign

Our Company

Sales and installation of LED lighting,
Energy-saving operation of facilities

AEON
Decarbonize
Vision 2050

● Verification of Establishment of Energy
Management Services including the administration
and retail of renewableenergy● Verification of power storage utilizing renewableenergy as part of BCP©2019 AEON Delight All Rights Reserved 13

China: Accelerate business expansion through 1 Aeon Delight strategies
Expand contracts, mainly in the Yangtze River Delta region,
based on 1 Aeon Delight strategies
Acquired 2 core operating companies as wholly
owned subsidiaries in the previous fiscal year

① Aeon Delight brand Unifying Operations
Northern China

Changjiang Delta
andSurrounding area
Southern
China Area
AD Jiangsu
Wuhan Xiaozhu② Enhancing Quality and Brand Power③ In the Yangtze River delta andsurrounding areas Expanding contracts
for facilities targeted (*)* Priority targets: Medium-to-high-end shopping
centers, hospitals and nursing homes,
Infrastructure and Development, etc.

Expanding business tonorthern and southern China©2019 AEON Delight All Rights Reserved 14

ASEAN: Expand business in Indonesia through early realization of synergies with SJSExpand business in Indonesia, ASEAN's largest market

In the top class in the country's cleaning industry
in the previous fiscal year
PT Sinar Jernih Sarana
Was made into a consolidated subsidiary

Through the early realization ofsynergies with us Accelerating
Business Expansion in Indonesia©2019 AEON Delight All Rights Reserved 15

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
50

China

Malaysia

VietnamIndonesia

Operating income

Operatingincome
8

44
40

6

34
30
3

20

4

2
2

10

0

0
Net sales

Operating income
FY2/19 1Q*Figures are simple totals for group companies.

Net sales

Operating income
FY2/20 1Q©2019 AEON Delight All Rights Reserved 16

Sales by Segment
Increase sales in 5 businesses.
Double-digit growth in construction work due to increased renovation orders.
(100 million yen)
FY2/19 1Q
FY2/18 1Q
Percentage change
Facilities management

141

149

105.9%

Security services

110

111

100.6%

Cleaning services

142

154

108.1%

Construction work

105

120

114.4%

Materials/supplies
sourcing services

129

129

100.6%

Vending machine services

81

76

95.0%

Support services

54

48

89.7%

(Reference)
Excluding KAJITAKU

33

34

101.4%

Total

763

790

103.5%(Reference)
Excluding KAJITAKU

743

775

104.4%©2019 AEON Delight All Rights Reserved 17

Profit by Segment
Increase sales in 3 businesses. Achieved double-digit growth in construction work.
Vending machines are undergoing a transition to a revenue model.
(100 million yen)
Percentage change

FY2/18 1Q

FY2/19 1Q

Facilities management

14.7

14.3

97.0%

Security services

7.2

7.3

101.1%

Cleaning services

16.8

17.2

102.4%

Construction work

9.8

10.9

110.6%

Materials/supplies
sourcing services

7.4

7.1

95.8%

4.1

2.5

61.3%

Support services

▲2.7

▲1.2

-

(Reference)
Excluding KAJITAKU

3.8

3.8

99.7%

57.6

58.2

101.2%

64.2

63.3

98.7%

Vending machine services

Total(Reference)
Excluding KAJITAKU©2019 AEON Delight All Rights Reserved 18

Initiatives by Segment

Facilities
management

In addition to new contracts, focused on supporting customers' disaster prevention anddisaster mitigation systems, and expanded the implementation and contracts of periodic
inspections for fire prevention equipment, emergency generator load tests.

Security services

Amid the tightening labor market, negotiated prices with customers to optimize unit prices andimprove profitability.

Cleaning services

In addition to new contracts, performance of SJS, a cleaning business company in Indonesia that became aconsolidated subsidiary in the previous fiscal year, contributed to overall results. Moreover, promoted theintroduction of automated driving cleaning robots to save labor

Construction work

Significantly expanded the number of contracts for renovation work as we strengthened thestructure in the planning and design fields to improve the possibility of contract in the previous
fiscal year, and established a service provision system closely linked to local communities.

Materials/supplies
sourcing services

Expanded contracts for packaging materials for AEON's PB products "TOPVALU. Focusedon reducing logistics costs to improve profitability

Vending machineservices

Focused on expanding the installation of in-house blenders to improve sales efficiency.
Reviewed the service life of the blender after comprehensively considering the actual
replacement period and physical life.

Support services

Expanded the provision of outsourcing services related to the management and operation offacilities and surrounding areas, including business by consolidated subsidiaries©2019 AEON Delight All Rights Reserved 19

Consolidated Balance Sheet(100 million yen)

AssetsFY2/19FY2/201Q

Difference

Current assets

1,087

1,060

▲26

Current
liabilities

495

479

▲15

Tangible fixed
assets

101

99

▲1

Fixed
liabilities

95

84

▲10

Intangible
fixed assets

81

79

▲1

Total
liabilities

590

564

▲26

Investments,
etc.

75

83

7

Shareholder’sequity

727

731

4

Fixed assets

258

262

4

Total net assets

755

759

3

Total assets

1,346

1,323

▲22

Total liabilities
and net assets

1,346

1,323

▲22

Liabilities andnet assets

FY2/19FY2/20 Difference
1Q©2019 AEON Delight All Rights Reserved 20

Shareholder Return

Dividends have increased for 14 consecutive years since FY2/06.
15 Consecutive Years of Dividend Increase

For FY2/19, we increased the dividend by 2 yen from the previous
fiscal year, to63 yenFor FY2/20, based on the assumption that the performance forecasts will be achieved,
Plan to pay dividends of

65 yen,up 2 yen from FY2/19 with consolidated dividend payout ratio of 30% (*),* Net income attributable to owners of parent: 10.8 billion yen©2019 AEON Delight All Rights Reserved 21

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.
http://www.aeondelight.co.jp

Based on information available up to the date of publication (July 5, 2019)
These forecasts have been prepared and are subject to change due to various factors going forward.