Financial Results for the Six Months Ended
August 31, 2021
AEON DELIGHT CO., LTD.
Kazumasa Hamada,President and CEO, Group CEO
October 6, 2021

Contents

1Financial Report for Q2 of FY2/22

2Initiatives for 2H of FY2/22©2021 AEON Delight All Rights Reserved2Consolidated Statement of Income
Sales and profits increased and progressed well against the plan aided by new customer development and market share
expansion among existing customers.
Compared to the same period of FY2/20, sales also increased and operating profit reached almost the same level.
The positive impact of COVID-19 on disinfection cleaning and quarantine related materials offset the negative imapct on operating income in
1H, resulting in break even.
(100 million yen)

FY2/21 Q2(Ratio to sales)

FY2/22 Q2(Ratio to sales)

Difference

PercentagechangeVs. FY2/20 Q2

Net sales

1,497 （100.0%）

1,639(100.0%）

141

109.5%

104.1%

Gross profit

182 （12.2%）

204（12.5%）22112.2%

103.5%

SG&A expenses

107（7.2%）

120（7.3%）

12112.1%

107.8%

Operating income

75（5.0%）84（5.1%）9112.4%

98.1%

Ordinary income

74（5.0%）84（5.2%）9113.2%

98.1%

Net income attributableto owners of parent

39（2.6%）55（3.4%）16140.9%

107.3%©2021 AEON Delight All Rights Reserved 3

Sales by Segment
Sales increased in all seven businesses; compared to the same period in FY2/20, sales
increased in five businesses excluding the Vending machine services and the Support services.
(100 million yen)

FY2/21 Q2

FY2/22 Q2PercentagechangeFacilities management

290

310

106.6%

104.7%

Security services

216

236

109.0%

106.6%

Cleaning services

304

341112.1%

110.3%

Construction work

221

247

112.0%

107.2%

Materials/supplies
sourcing services

266

287

108.2%

111.1%

Vending machineservices

120

135

112.3%

84.2%

Support services

7780

104.1%

83.5%

1,497

1,639

109.5%

104.1%Total

Vs. FY2/20 Q2©2021 AEON Delight All Rights Reserved 4

Profit by Segment
Profits increased in six businesses excluding the Vending machine services.
Cleaning services contributed to the growth through its COVID-19-related services.
(100 million yen)

FY2/21 Q2

FY2/22 Q2PercentagechangeFacilities management25.4

26.2

102.9%

94.0%

Security services

15.9

17.0

106.8%

120.5%

Cleaning services

34.3

42.7

124.7%

121.8%

Construction work

20.8

22.5

108.1%

103.5%

Materials/supplies
sourcing services

12.8

13.6

106.1%

100.5%

Vending machineservices

3.5

3.5

98.8%

50.1%

Support services

▲1.0

2.5

-

100.4%

Total

111.9

128.2

114.5%

105.1%

Vs. FY2/20 Q2©2021 AEON Delight All Rights Reserved 5

Consolidated Balance Sheet(100 million yen)

AssetsFY2/21

FY2/22Q2Current assets

1,1001,178

78

Current
liabilities441463

22

Tangible fixedassets

9484▲10Fixedliabilities

4136▲4Intangible
fixed assets

5554▲0482

500

17Investments,etc.

115

101

▲14Shareholder’sequity

86689932

Fixed assets

265240▲25

Total net assets

88291936

Total assets

1,365

1,419

53

Total liabilities
and net assets

1,365

1,419

53

Difference

Liabilities andnet assets

Totalliabilities

FY2/21

FY2/22Q2Difference©2021 AEON Delight All Rights Reserved 6

Consolidated Statement of Cash Flows(100 million yen)(100 million yen)
FY2/21Q230FY2/22Q2

Operating CF
営業ＣＦ

Investing CF
投資ＣＦFinancing
CF財務ＣＦ

Difference
15

Cash flows fromoperating activities

9178

Cash flows frominvesting activities▲51▲4470(15)(30)

Cash flows fromfinancing activities▲34▲249

Cash and cash
equivalents at theend of year

533

58349(45)(60)

FY2/21 Q2

FY2/22 Q2©2021 AEON Delight All Rights Reserved 7

Major Initiatives in FY2/22 Q2 ① Response to COVID-19 Infections
Aiming to create a society in which epidemic prevention is a part of daily habit, wewill continue to take various epidemic prevention measures, such as preventing
contact and droplet infections.

Installed carbon dioxide meter at more than
400 Aeon stores to date to improve ventilation
systemJointly develop a network-type carbon dioxide
monitoring system with a manufacturer tofurther promote ventilation

Introduced to a total of 58 Aeon stores andstadiums©2021 AEON Delight All Rights Reserved 8Major Initiatives in FY2/22 Q2 ② Strengthen organizational sales force<Customer-oriented Management>

Expand market share bystrengthening organizational sales force● Strengthen account sales- Promote understanding of customers and target industries by account managers- Increase market share among existing customers by improving customer
satisfaction● Visualize and strengthen sales activities- Visualize the sales activities of each sales staff- Improve organizational sales force by analyzing the process of closing deals©2021 AEON Delight All Rights Reserved 9Major Initiatives in FY2/22 Q2 ③ Selected as a DX-certified operator<Promotion of DX>

Selected as a DX-certified operator
by the Ministry of Economy, Trade and Industry in June 2021

We have received the "Digital
Transformation Certification" by theMinistry of Economy, Trade and Industry asa company ready to promote DX in
response to the basic matters of the Digital
Governance CodeAmid the labor shortages, we will continue
to provide "safety and security" throughservices that integrate "humantechnologies" and "pure technologies" andutilize our expertise through DX.
©2021 AEON Delight All Rights Reserved 10

Major Initiatives in FY2/22 Q2 ④ Development of Area Management<Promotion of DX>

Accelerating the development of a new facility management model, "Area Management," toefficiently provide services that leverage the expertise in facility management● Achieved labor saving and unmanned
operation at a total of 123 facilities
through remote support by customer
support center (CSC) and labor-saving onsite operations utilizing various systems
and sensors● Approximately 100 specialists werereassigned to new consignment properties,
sales and construction centers

Kanto Branch CSC・Collecting customer information and voices
・Remote control/centralized monitoring of movement ofpeople within the facility

Amid labor shortages, we have expanded theprovision of "safety and security" to morecustomers by securing human resources
through area management©2021 AEON Delight All Rights Reserved 11

Major Initiatives in FY2/22 Q2 ⑤-1 Consolidation of head office functions (improvement of productivity)<Promotion of DX>

Centralized the headquarters functions toimprove productivity through improving theefficiency of headquarters operations andimplementing work style reforms.
The operations at the headquarters started
on September 1, 2021.
Renovation by the company's interior
design department to create a smart officebased on the concept of "Active Work
Design" to maximize the capabilities ofeach employee.

©2021 AEON Delight All Rights Reserved 12

Major Initiatives in FY2/22 Q2 ⑤-2 Consolidation of head office functions (strengthen communication)<Promotion of DX>

Constantly connected to all eight domestic branches.
Established a network environment to enable
immediate communication with Group companies inJapan and overseas.
Established a network environment to enable
immediate communication with Group companies inJapan and overseas.

Kanto Branch CSC on the 3rd floor, which functions
as an alternative base for the Crisis Management
Center in the event of a disaster

The head office shares real-time information ineach region and supports problem solving asneeded.

Distribution studio (left)
Webinar room (right)
Becoming an information basefor facility management©2021 AEON Delight All Rights Reserved 13

Major Initiatives in FY2/22 Q2 ⑥ Business Expansion in Asia
＜Group management＞
We have steadily expanded our business in China. To expand contracts with Japanese factories, AD Jiangsu
made a leading local company its subsidiary.
In the ASEAN region, we support customers' business continuity in the midst of a severe business environment
caused by the impacts of COVID-19 in many countries.
In overseas, net sales were 125.9% YoY and Operating income was 121.4% YoY*Overseas Business: Net Sales / Operating Income (100 million yen)
(Operating income)(Net sales)
China

Malaysia

VietnamIndonesia

Operating income

12012118.6

90

94.2
8.7

97.1
60

630

300

FY2/21 Q2* Figures are simple totals of results of operating companies.

FY2/22 Q2©2021 AEON Delight All Rights Reserved 14

Major Initiatives in FY2/22 Q2 ⑦ Formulation of the Basic Sustainability Policy
Aiming to realize Vision 2025, we will enhance the driving force to resolve social
through ESG management based on both business, and the environment and society.

Basic Sustainability Policy
AEON Delight's management philosophy is "We will continue to create "environmental value" for ourcustomers and local communities." Based on this management philosophy, together with our many
stakeholders, we will contribute to the resolution of social issues and the realization of a sustainable society bycreating "environmental value" in all situations.
・We will strive to create a safe, secure, hygienic, and healthy user environment in and around our facilities.
・By providing solutions that meet society's expectations, we will contribute to the realization of a carbonfree society, the conservation of biodiversity, and the promotion of resource recycling.
・We will comply with laws and social norms, build relationships of mutual trust with our business partners,
and conduct fair business activities throughout the supply chain.
・We will respect the human rights of each individual and create a vibrant organizational culture in which
diverse human resources can demonstrate their abilities.
・As a corporate citizen, we will engage in social contribution activities aimed at a better environment andsociety.

In accordance with this policy, we will implement initiatives with an awareness ofsustainability in all of our business models, growth strategies, and business activities.
©2021 AEON Delight All Rights Reserved 15

Contents

1

Financial Report for Q2 of FY2/22

2Initiatives for 2H of FY2/22©2021 AEON Delight All Rights Reserved 16

Progress against planned figures for FY2/22
Progress against the operating income plan is 50%.

Aim to achieve the planned figures by implementing various measures (see next section)(100 million yen)

FY2/22 1H Result(Ratio to sales)

FY2/22 Forecast(Ratio to sales)

Net sales

1,639 （100.0%）

3,250 （100.0%）

50.4%

Progress rate

Operating income

84（5.1%）165（5.2%）

50.9%

Ordinary income

84（5.2%）

165（5.2%）

50.9%

Net income attributableto owners of parent

55（3.4%）105（3.2%）

52.4%*Estimated impact of COVID-19 and the former KAJITAKU Business on operating income in FY2/22
・COVID-19: -500 million yen (FY2/21: -1.5 billion yen)・Former KAJITAKU: -300 million yen (FY2/22: -1.0 billion yen)©2021 AEON Delight All Rights Reserved 17

Measures to achieve the full-year budget (sales expansion)
IssuesMeasures●Expand market share outside the AEON Group・Expand market share among existing customers through accountsales that have already started to produce positive results in 1H.
・Promote new customer development by strengthening industryspecific sales.

Sales
expansion●Construction business・Increase the number of contracts for renovation work by improving
the certainty of contracts through strengthening sales andoptimizing construction specifications and processes.

●Materials-related business・ Strengthen sales and marketing to become a top supplier of acomprehensive range of materials handled by the AEON Group.

©2021 AEON Delight All Rights Reserved 18

Measures to achieve the full-year budget (improvement of profitability)
IssuesMeasures●Building Maintenance Business Division(Facilities management)
・Improvement of productivity of facility staff through area
management and utilization of CSC.
・Review of outsourcing costs by consolidating contractors.

(Security services)

Improvement ofprofitability

・Continue to optimize unit prices by introducing systems forlaborsaving and through price negotiations.

(Cleaning services)・Strengthen cooperation with partner companies to build an
economic zone.

●Staff Division
・Improve productivity by streamlining the head office functions andpromoting new work styles such as remote work and online
meetings.

©2021 AEON Delight All Rights Reserved 19

(Reference) Progress in KPIs (Key Performance Indicators) of the Medium-Term Management Plan

Steadily promote key measures by monitoring KPIs
Basic Policy
Customeroriented
management

KPI (End-FY2/24)
Ratio of sales inside/outside the AEON Group
60%:40%Operating income margin of 6.0% ,sustaining the standard of ROE 12% (full-year)
through increasing operating income

Promotion ofDX

Number of facilities introducing area management: 360
Reduction in number of on-site staff through area
management: 180
Allocation of 20% of staffs in the headquarters to front

Progress in FY2/22 Q2

End-FY2/21

65.8%：34.2%

64.3%：35.7%

Operating income margin:
5.1%
ROE: ー※Operating income margin:
5.1%
ROE: 14.1%

123 facilities

ー

About 100 staffs

ーー※ーー※

52.8 billion yen

7.2％

6.7%ー※

ー

office by consolidating head office functions
Net sales of 65.0 billion yen consolidated with groupcompanies in JapanGroupmanagement

Net sales ratio of Asia businesses over 8%
Shift to shared services for domestic group finance andaccounting departments (full-year)

Items in blue indicate improvements.
*Some indicators were updated on a full-year basis.

©2021 AEON Delight All Rights Reserved 20

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◇ Figures are rounded down to the nearest 100 million yen.
*Figures on page 5, 14 are rounded down to the nearest 10 million yen.
◇ Percentages have been rounded off to one decimal placeAEON DELIGHT CO., LTD.
(Securities Code: 9787)

IR Contact : Emiko Ishii
President’s Office
TEL 03-6895-3892
Please contact us on our website.
https://www.aeondelight.co.jp

Based on information available up to the date of publication (October 6, 2021)
These forecasts have been prepared and are subject to change due to various factors going forward.