Financial Results for the Six Months Ended
August 31, 2023
AEON DELIGHT CO., LTD.
Kazumasa Hamada,President and CEO, Group CEO
October 10, 2023

Contents

1

Financial Report for FY2/24 H1

2

Initiatives for H2 Onward to Achieve the Full-year Operating Income Target©2023 AEON Delight All Rights Reserved2

Consolidated Statement of Income
Sales and profits increased owing to the growing market share of existing customers and new customer
acquisition.
On the other hand, profits fell below the plan due to inadequate efforts to improve profitability amid
rising cost pressures.
(100 million yen)

FY2/23 H1(Ratio to sales)

FY2/24 H1(Ratio to sales)

Net sales

1,476(100.0%)1,615

Gross profit

196(13.3%)

SG&A expenses

130

Operating income

Ordinary income
Net income
attributable toowners of parent

Difference

Percentagechange(100.0%)

138

109.4%

208(12.9%)

12106.1%(8.8%)

135(8.4%)

5104.2%

66(4.5%)72(4.5%)

6110.0%

66(4.5%)74(4.6%)7112.1%43(2.9%)53(3.3%)9122.8%©2023 AEON Delight All Rights Reserved３

Sales by Segment
Sales increased in all seven business segments. Double-digit growth was achieved in the Construction
work, driven by increased orders for energy-saving-related works, and in Material/supplies sourcing
services, driven by increased orders for materials.

(100 million yen)

FY2/23 H1

FY2/24 H1Facilities
management

322

345

107.1%

Security services

241

254

105.4%

Cleaning services

337

352

104.2%

Construction work

233

288

123.4%

Materials/supplies
sourcing services

204

229

112.4%

Vending machineservices4749

102.6%

Support services

8996

107.9%

1,476

1,615

109.4%

TotalPercentage change©2023 AEON Delight All Rights Reserved

４Profit by Segment
Profits increased in 5 businesses and decreased in 2 businesses.
Profits declined in Cleaning services and Support services, mainly due to lower profitability from higher laborand subcontracting costs.

(100 million yen)

FY2/23 H1

FY2/24 H1Facilities management

28.2

28.6

101.6%

Security services

14.4

15.8

110.0%

Cleaning services

33.2

27.9

83.8%

Construction work

14.0

23.7

169.3%

Materials/supplies
sourcing services

9.9

11.9

120.5%

Vending machineservices

5.5

6.7

121.6%

Support services

2.7

1.4

51.8%

108.3

116.4

107.5%

Total

Percentage change©2023 AEON Delight All Rights Reserved５Consolidated Balance Sheet(100 million yen)Aug. 2023

Difference

Current
liabilities

484

487

3

Noncurrent
liabilities

28

30

2

512

518

6

Shareholder’sequity

959

965

63

Total net assets

993

1,009

1521

Total liabilities
and net assets

1,506

1,527

21

Aug. 2023

Difference

1,295

1,313

18

Property, plantand equipment

6468

3

Intangible
assets6364

0Investments,
etc.

82

81

▲0Noncurrent
assets210

214

Total assets

1,506

1,527

Current assets

Liabilities andnet assets

Feb. 2023

Feb. 2023

AssetsTotalliabilities©2023 AEON Delight All Rights Reserved

６Consolidated Statement of Cash Flows(100 million yen)Aug. 2022

Aug. 2023

Difference(100 million yen)
60

営業ＣＦCF
Operating

投資ＣＦ
InvestingCF

財務ＣＦ
Financing CF

40

Cash flows fromoperating activities

94940

200

Cash flows frominvesting activities
Cash flows fromfinancing activities
Cash and cash
equivalents at theend of year▲59▲3227(20)(40)▲20▲45▲25(60)(80)

614576▲372022/8月期
FY8/232023/8月期
FY8/24©2023 AEON Delight All Rights Reserved

7Major Initiatives in FY2/24 Q2 ① Customer-oriented management
Promoted various initiatives set at the beginning of the period to expand market share.

Initiatives

Results・Through strengthening relationships with customers through accountmanagement, we increased the market share of existing customers by expanding

Further strengthen

the services and by contracting with the same customer to provide services toaccount sales

properties at other locations.
・Since our services and expertise are highly evaluated, we received new orders
from a wide range of facilities.

・Orders increased for energy-saving-related construction projects, where demand

Strengthen
construction works

is rising in line with higher energy costs.
・Orders for various types of work increased through aggressive proposals ofrenovation and repair work for facilities managed.

©2023 AEON Delight All Rights Reserved 8

Major Initiatives in FY2/24 Q2 ② Promotion of DX-１
Updated the Aeon Delight Platform, a data linkage platform, by adding new functions
To streamline sales activities and prevent opportunity losses

Additional functions
・Transaction analysis
tool byindustry/property use
・Tool to visualize theprogress of planned
repairs
Existing customers

Customer SupportCenterManaged facilities
Management andoperation information offacility

AEON Delight
Platform

Solutions that contribute tosolving issues

Account
Manager
Customer
Information/Industry
Information

Potential customers

Collect and analyze various data andprocess them into valuable
information©2023 AEON Delight All Rights Reserved 9

Major Initiatives in FY2/24 Q2 ② Promotion of DX-２
To build a sustainable business model, we developed the Area Management
system and promoted the reform of facility management operations.

● Development of "area management“
Labor-saving at 39 new facilities(312 facilities in total)
Reallocated more than 43 specialist personnel(cumulative total of 210)
*Area Management
A facility management model in which multiple facilities are managed on
an area-by-area basis, mainly through remote control and patrol services.

● Reform of facility management operations
Utilization of digital devices enables automation ofroutine operations (facility inspections, preparationof reports, etc.) and visualization of power
consumption
Introduced at 86 new facilities (257 facilities intotal)● DX of facility administration operations throughuse of cameras (top) and sensors (bottom)©2023 AEON Delight All Rights Reserved 10

Major Initiatives in FY2/24 Q2 ③ Group Management-1
Sales and profits increased for all domestic group companies thanks to the recovery inperformance of AEON DELIGHT CONNECT, a core company in the management ofsmall and medium-sized facilities, and AEON COMPASS, a travel-related business.

Company nameAEON DELIGHT
CONNECT CO., LTD.

AEON compass Co.,Ltd.

OutlineSales and profits significantly increased due to the expansion of contracts for cleaning andmaintenance operations and construction works by apparel chains, restaurant chains, andconvenience stores.

Sales and profits increased thanks to the strong performance of on-site management
services and corporate travel business along with the recovery of human flow.

Kankyouseibi Co., Ltd.

Sales increased due to an increase in energy-saving-related construction works, but profits
decreased due to higher labor costs.

Hakuseisha CO., LTD.

Profits decreased due to higher labor costs, etc., while sales remained at the same level as
the previous fiscal year.

Ask Maintenance Co., LtdIn April, we made the company, which operates a cleaning business mainly in the Kyushu
region, a wholly owned subsidiary. Both sales and profits increased due to growth in neworders, contributing to the Group's performance from the first half of the year.
©2023 AEON Delight All Rights Reserved 11

Major Initiatives in FY2/24 Q2 ③ Group Management-2
In overseas business, sales increased to 113.3% YoY, but operating profit decreased to 92.3% YoY.
China: Sales increased as the business expanded steadily through expanding the market share of existing customers andnew customer acquisitions. On the other hand, profit decreased due to the impact of rising personnel costs andother factors.
ASEAN: Higher sales in countries where we operate. On the other hand, profit decreased due to the impact of the rise in laborcosts associated with the revision of the Employment Law in Malaysia.
(Net sales/(Operating income

China

100 million yen)

Malaysia

VietnamIndonesia

Operating income/100 million yen)

200

12173

150

153

97.9

7.3

100

650

30Net sales

Operating income0Net sales

FY2/23 H1* Fiscal year of overseas businesses ends in December. Figures are simple totals of operating companies.

Operating income

FY2/24 H1©2023 AEON Delight All Rights Reserved

12

Contents

1

Financial Report for FY2/24 H1

2

Initiatives for H2 Onward to Achieve the Full-year Operating Income Target©2023 AEON Delight All Rights Reserved

13Progress Toward Planned Targets for FY2/24

H1: Operating income fell below the target
H2: Aim to achieve the target through various measures (refer to the next page)

FY2/24 Forecast(Ratio to sales)(100 million yen)

FY2/24 H1 Result(Ratio to sales)

Net sales

1,615(100.0%)

3,100(100.0%)

52.1%

Operating income

72(4.5%)160(5.2%)

45.4%

Ordinary income

74(4.6%)160(5.2%)

46.3%

Net income attributableto owners of parent

53(3.3%)104(3.3%)

51.2%

Difference©2023 AEON Delight All Rights Reserved

14

Initiatives for H2 Onward to Achieve the Full-year Operating Income Target
Amid rising cost pressures, we will continue to work on measures to improve profitability whilestrengthening sales activities to secure sales in excess of the plan.
Items

Major initiatives•

Increase sales

Further increase orders for energy conservation-related work, such as LED lighting
and replacement of air conditioning and heat source equipment.

•Strengthen proposals for small-scale repairs by cites to maintain "safety and security"and "aesthetics" of facilities.

• Facilities management: In addition to reviewing unit labor costs associated with laborsaving in area management and on-site operations, begin cost structure reform byreviewing unit labor costs for operations and bringing some maintenance operations
in-house.

Improve profitability• Security services: Promote rationalization of unit prices through labor saving and pricenegotiations through entry and closure management and systemization of store closure
operations.
• Materials/supplies sourcing services: Promote appropriate reflection of cost increases
in various materials in selling prices.
©2023 AEON Delight All Rights Reserved

15

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

Basic Policy
Customeroriented
management

KPI (End-FY2/24)
Ratio of sales inside/outside the AEON Group
60%:40% (total)
Operating income margin of 6.0%*1,
sustaining the standard of ROE 12% (full-year)
through increasing operating income
Number of facilities introducing area management:

Promotion of360 (total)

FY2/24 Q2

End-FY2/22

62.6%：37.4%

64.4%：35.6%

Operating income margin: 4.0%*1

Operating income margin: 5.0%*1

ROE: －％*2

ROE 11.7％

312 facilities

178 facilities

210 staffs

115 staffs

ー*2Started improvement ofbusiness processes in the head
office divisionsー*2

52.1 billion yen

9.7％*17.8％

ー*2

Started support from ourfinancial and accounting
department for all domesticgroup companies

DX
Reduction in number of on-site staff through area
management: 180 (total)
Allocation of 20% of staffs in the headquarters tofront office by consolidating head office functions
Net sales of 65.0 billion yen consolidated with groupcompanies in Japan

Groupmanagement

Net sales ratio of Asia businesses over 8.0%*1(Former Revenue Recognition Standard)
Shift to shared services for domestic group financeand accounting departments (full-year)

Items in blue indicate improvements.
*1 Calculation based on the former revenue recognition standard*2 Renewed for the full year©2023 AEON Delight All Rights Reserved16

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

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

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

Based on information available up to the date of publication (October 10, 2023)
These forecasts have been prepared and are subject to change due to various factors going forward.