Financial Results for the Nine Months Ended
November 30, 2022

AEON DELIGHT CO., LTD.
January 12, 2023

Contents1

Financial Report for Q3 of FY2/23

2

Initiatives for Q4 of FY2/23©2023 AEON Delight All Rights Reserved2Consolidated Statement of Income (Cumulative Q3)
Sales increased but profits decreased YoY. The performance lagged behind initial forecasts,
but are on a recovery track in Q3 (see next page).
COVID-19 and the Russia/Ukraine crisis had a 860 million yen of negative impact on our operating income.

FY2/22 Q3(Ratio to sales)

Net sales[Former Revenue
Recognition Standard]

2,152 （100.0%）［2,407］

FY2/23 Q3(Ratio to sales)

2,268［2,530］(100.0%）Difference

Percentagechange(100 million yen)Vs.
FY2/20 Q3

105.4%
110.3%
115［123］ ［105.1％］ ［108.8％］

Gross profit

298（13.9%）302（13.4%）

4

101.5%

104.4%

SG&A expenses

179（8.4%）

194（8.6%）

14

108.3%

115.2%

Operating income

118（5.5%）

108（4.8%）▲1091.3%

89.4%

Ordinary income

119（5.5%）

110（4.9%）▲992.1%90.3%

84（3.9%）71（3.2%）▲1384.3%

97.2%

Net income
attributable toowners of parent* Figures for change, difference, and comparison with the FY2/20 Q3 are reclassified under the new revenue recognition standard and compared under the same standard
for the same period of the previous year and the same period of FY2/20.
Figures in square brackets are comparisons with the same basis under the old revenue recognition standard.
* (Ratio to sales) is calculated based on the new revenue recognition standard.

©2023 AEON Delight All Rights Reserved3Consolidated Statement of Income (Q3)
Operating income increased by 123.1% YoY due to an increase in new contracts and an increasein orders for various types of construction projects.

(100 million yen)

Net sales[Former Revenue
Recognition Standard]

FY2/22 Q3(Ratio to sales)

FY2/23 Q3(Ratio to sales)

Difference

686（100.0%）
［768］

791
［877］

(100.0%）115.3%
118.8%
104［108］ ［114.2％］ ［116.7％］

106（13.5%）64（8.2%）42Gross profit

93（13.6%）

SG&A expenses

59（8.7%）

Operating income

34（5.0%）Ordinary income

34（5.0%）Net income
attributable toowners of parent

29（4.3%）

PercentagechangeVs.
FY2/20 Q313114.0%

115.5%

5108.8%112.7%（5.3%）

7123.1%

120.1%

43（5.6%）9127.3%124.5%

28（3.6%）▲196.2%

129.2%* Figures for change, difference, and comparison with the FY2/20 Q3 are reclassified under the new revenue recognition standard and compared under the same standard
for the same period of the previous year and the same period of FY2/20.
Figures in square brackets are comparisons with the same basis under the old revenue recognition standard.
* (Ratio to sales) is calculated based on the new revenue recognition standard.
4©2023 AEON Delight All Rights Reserved

Sales by Segment
Sales increased in all 7 businesses due to expansion of market shareamong existing customers and development of new customers.

(100 million yen)

FY2/22 Q3

FY2/23 Q3Percentage changeVs.
FY2/20 Q3

Facilities Management[Former Revenue
Recognition Standard]

464
［464］

490
［487］

105.4%［104.9％］110.7%［110.1％］

Security services

354

369

104.2%

110.8%

Cleaning services

504

511

101.3%

109.9%

Construction work

336

382

113.4%

119.3%

301
［427］

309
［442］

102.8%［103.5％］114.6%［114.8％］69［197］70［202］101.9%［102.4％］85.4%［85.3％］

120135111.7%

95.0%

2,152
［2,407］2,268［2,530］105.4%［105.1％］110.3%［108.8％］Materials/supplies
sourcing services[Former Revenue
Recognition Standard]

Vending machineservices[Former Revenue
Recognition Standard]

Support services
Total[Former Revenue
Recognition Standard]©2023 AEON Delight All Rights Reserved

5Profit by Segment

Profits increased in 3 businesses and decreased in 4 businesses.
The major factors are as follows.
Security services：Decrease in orders for safety cameras, Cleaning services：Decrease in orders for alcohol-disinfecting cleaning
and upfront investments accompanied by development of new customers, Construction work：Decrease in orders for minor
repairs, Materials/supplies sourcing services：Increase in purchase cost
Vs. (100 million yen)
Percentage change
FY2/22 Q3
FY2/23 Q3
FY2/20 Q3

Facilities
management

40.3

42.6

105.7%

105.7%

Security services

25.9

23.0

88.9%

104.5%

Cleaning services

61.7

50.3

81.6%

95.2%

Construction work

28.6

27.1

94.9%

95.4%

Materials/supplies
sourcing services

19.3

14.5

75.3%

74.8%

Vending machineservices

4.1

7.9

191.0%

83.4%

Support services

3.3

4.1

126.9%

95.0%

183.4

169.9

92.6%

95.9%

Total

©2023 AEON Delight All Rights Reserved

6Consolidated Balance Sheet(100 million yen)

Assets2022/22022/11Difference

Current assets

1,210

1,281

71

Tangible fixedassets

7071

0

Intangible
fixed assets

5664

Investments,etc.

91

Fixed assets

Total assets

Liabilities andnet assets

2022/22022/11Difference

438

483

44

Fixed liabilities

3532

▲27

Total liabilities474516

4284

▲6

Shareholder’sequity929941

11218

220

1

Total net assets

954985

30

1,428

1,501

73

Total liabilities
and net assets

1,428

1,50173

Currentliabilities©2023 AEON Delight All Rights Reserved

7

Major Initiatives in FY2/23 Q3 ① Customer-oriented management
Expanded market share by strengthening the sales structure and proposing energy
management and other solutions based on customer issues

Initiatives

Enhance sales
structure

Details
・Strengthened account sales with the aim of expanding market sharewithin customers

・Strengthened regional sales by branches and offices

・Promoted energy saving at facilities through the use of LED lighting,Responded to risingenergy costs

updating of air conditioning equipment, and sales of CFC-free cases
・Planned more advanced energy management for each facility andintroduced power visualization tools to 38 facilities©2023 AEON Delight All Rights Reserved8

Major Initiatives in FY2/23 Q3 ② Promotion of DX
Accelerated the development of "area management", a new facility management
model, to build a sustainable business model

Reorganized area branch system under all 8domestic branch offices as the reorganization
plan in April 2022.
Designed areas based on customer needs andfacility/regional characteristics, and developed anationwide "area management" system.
At the same time, we have made progress inautomating inspection operations through theintroduction of cameras and sensors andconsolidating operations at customer support
centers, resulting in the following results.

●Customer support centers with remotemonitoring functions are set up under the control of
8 branch offices nationwide.

Labor-saving at 91 new facilities(269 facilities in total)
Aim to redeploy 41 specialized personnel(156 in total)
to capture new opportunities to gain revenues©2023 AEON Delight All Rights Reserved9Major Initiatives in FY2/23 Q3 ③ Group Management-1 (Domestic Group Companies)

Sales increased but profits decreased for all domestic group companies.
Struggle to respond to rising costs despite sales growth in a harsh environment

Company nameAEON COMPASSAEON DELIGHT
CONNECT

Hakuseisha

Kankyo Seibi

Outline・Profits significantly recovered by steadily responding to demandfor recovering business trip and physical events, which are onthe rise.
・Building maintenance subsidiaries continued to face achallenging business environment due to the cancellation andpostponement of customers' capital investment plans in line withchanges in the business environment, a shortage/delayed
procurement of materials and equipment associated with
COVID-19 and the situation in Ukraine, etc., while some sales
increased, but they struggled to cope with rising costs.

©2023 AEON Delight All Rights Reserved

10Major Initiatives in FY2/23 Q3 ③ Group Management-2 (Business Expansion in Asia)
Sales and profits increased in both China and ASEAN businesses
China: Promoted expansion of share within customers and acquisition of new customers through M&A
ASEAN: Sales increased significantly in all countries where we operate as the economies of each country
began to recover.
Net sales in overseas business were 135.9% YoY, operating income was 108.6% YoY*Changes in net sales/operating income in overseas business (100 million yen)
（Net sales）

China

Malaysia

Vietnam250

Indonesia

Operating income

241.4

12.5

200

11.5

177.7

（Operatingincome）
1512150

9100650300
FY2/22 Q3*Figures are simple sum of operating companies.

FY2/23 Q3©2023 AEON Delight All Rights Reserved

11Major Initiatives in FY2/23 Q3 ④ Skill Contests
Becoming a group of experts in facility management with partner companies.
We held the Fourth AEON Delight Skill Contest.

[Photos of contests]

From left: The facilities management contest, The cleaning services contest, The security services contest

These events allowed AEON Delight companies as well as partner companies (cleaning, security)
in Japan and other countries to share their skills and their successful activities.

Skills x Human capabilities = Specialists©2023 AEON Delight All Rights Reserved12

Major Initiatives in FY2/23 Q3 ⑤ Acquisition of Treasury Stock and Employee Stock Grants

In addition to acquisition of treasury stock, we have decided to grant stock to employees,
who are important stakeholders.

■ Acquisition of up to 1.5 million shares from October 5, 2022 to October 4, 2023
(Acquired 349,300 shares as of December 31, 2022)＋■ To commemorate the 50th anniversary of our founding, we have decided to grant
stock to employees through the Employee Stockholding Association- Grant of 30 shares of our stock to members of Employee Stockholding Association(as of the end of February 2023)
To increase awareness of participation in management, commitment to future
performance, and loyalty©2023 AEON Delight All Rights Reserved

13

Contents

1

Financial Report for Q3 of FY2/23

2

Initiatives for Q4 of FY2/23©2023 AEON Delight All Rights Reserved

14

Initiatives for Q4In addition to reducing SG&A expenses by 10% compared to forecasts, aim toaccumulate operating income by executing various measures

Items

Major Initiatives

・Further reinforce energy-saving proposals, including use of LED lighting,

Increase net sales

replacement of air conditioners, and sales of CFC-free cases
・Strengthen proposals for small-scale repairs to maintain the "safety and security"and "aesthetics" of facilities
・Facilities management business: Promote the reduction of facilities management staff
stationed in conjunction with the expansion of area-management

Improve profitability

・Security services business: Promote labor savings by systemizing entry and closure
management and store closure operations
・Materials/supplies sourcing services business: In addition to streamlining logistics
costs, continue to strive to reflect rising costs in appropriate selling prices©2023 AEON Delight All Rights Reserved

15

Business Forecasts for FY2/23(100 million yen)

FY2/22 Result(Ratio to sales)
New revenue recognition standard

2,839 （100.0%）
Net sales
Former revenue recognition standard

3,176 （100.0%）

FY2/23 Forecast(Ratio to sales)

Percentage change

New revenue recognition standard

3,100 （100.0%）

109.2%

Former revenue recognition standard

3,470 （100.0%）

109.3%

Operating income

157（5.0%）

170（5.5%）

108.3%

Ordinary income

157（4.9%）

170（5.5%）

109.0%Net income attributableto owners of parent

106（3.4%）

107（3.4%）

100.0%* Figures (Ratio to sales) for FY2/22 are based on the former revenue recognition standard, and figures for FY2/23 arebased on the new revenue recognition standard.
• Estimated impact of COVID-19 on operating income in FY2/23: -800 million yen (-1.2 billion yen in FY2/22)(excluding the impact of the Ukraine crisis)©2023 AEON Delight All Rights Reserved

16Progress in KPIs (Key Performance Indicators) of the Medium-Term Management Plan
Basic
PolicyCustomeroriented
management

Promotion ofDXGroupmanagement

KPI (End-FY2/24)

Progress in FY2/23 Q3

End-FY2/22

Ratio of sales inside/outside the AEON Group
60%:40%(total amount)

64.0%：36.0%

64.4%：35.6%

Operating income margin of 6.0%,
sustaining the standard of ROE 12% (full-year)
through increasing operating income

Operating income margin:
4.8%
ROE －％※

Operating income margin:
5.0%
ROE: 11.7％

Number of facilities introducing area management:
360 (total)

269 facilities

178 facilities

Reduction in number of on-site staff through areamanagement: 180(total)

156 staffs

115 staffs

Allocation of 20% of staffs in the headquarters tofront office by consolidating head office functionsー※

Began to improve businessprocesses in the head officedivision

Net sales of 65.0 billion yen consolidated withgroup companies in Japanー※52.1 billion yen

Net sales ratio of overseas businesses over 8%

10.6％

7.8％

ー※

Started providing support from ourfinance and accounting
department for all domestic groupcompanies.

Shift to shared services for domestic group financeand accounting departments (full-year)
Items in blue indicate improvements.
*Some indicators were updated on a full-year basis.

©2023 AEON Delight All Rights Reserved17

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 6, 11 are rounded down to the nearest 10 million yen.
◇ Percentages have been rounded off to one decimal place
IR Contact : President’s Office, PR・IR GroupTEL 03-6895-3892

AEON DELIGHT CO., LTD.
(Securities Code: 9787)

Please contact us on our website.
https://www.aeondelight.co.jp/english/

Based on information available up to the date of publication (January 12, 2023)
These forecasts have been prepared and are subject to change due to various factors going forward.