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【Financial Summary】(1) Net sales : ¥142.7 billion (+¥8.7 billion, 106.5% YoY)i.
Net sales increased YoY in 6 businesses
ii. Double digit growth in construction work business and support businessiii. The increase is mainly derived from increase in customers outside the AEON Group,
establishment of new AEON Group stores,renovation of existing stores and growth of subsidiary KAJITAKU Co., Ltd.
(２) Gross margin : ¥18.5 billion (+¥1.3 billion, 107.6%YoY）
i.
Earnings increased thanks to increase in sales (+¥1.1 billion YoY)
ii. Earnings increased thanks to improvement in gross margin (+¥200 million YoY)
(3) Operating income: ¥8.1 billion (+¥410 million, 105.4% YoY)i.
SG&A increased due to increase in personnel expenses for recruiting strategic humanresources, system expenses and prior investment related to new orders
ii. Income increased as planned, although SG&A exceeded the growth rate of gross margin(4) Ordinary income: ¥8.1 billion (+¥410 million, 105.4% YoY)
(5) Net income: ¥4.6 billion (+¥300 million, 106.9% YoY)
【Reference】Comparison with forecasts (forecast for cumulative second quarter of FY2/16)
Net sales : ¥142.7 billion, 103.5% to the ¥138.0 billion forecast
Operating income: ¥8.1 billion, 101.5% to the ¥8.0 billion forecast
Ordinary income: ¥8.1 billion, 101.7% to the ¥8.0 billion forecast
Net income: ¥4.6 billion, 104.0% to the ¥4.5 billion forecast

3【Net sales by Segment】(1) Facilities management
Sales increased owing to orders from outside the AEON Group including hospitals etc. and from new AEON stores
According to the amendment of act, promote the CFC management services and expanded the office to over 1,300(2) Cleaning services
Sales increased owing to increase in new orders, as well as the facilities management. Established a framework forhygiene control services for medical facilities and started using these services to capture new business(3) Security services
Sales increased owing to increase in new orders, as well as the facilities management. Strong customer response to theattender service, an additional security service for AEON facilities.
(4) Construction work
Increase in orders for construction works such as revitalization, restoring and energy saving construction. Improve
profitability by elaboration of construction estimates and appropriate time management(5) Materials/supplies sourcing services
Started business with new customers and expand business with existing customers(6) Vending machine services
Expect lower sales in FY2/16 due to completion of installation of a large number of vending machines in FY2/15. For
reform including business structure and profit structure, started signage vending machine advertisement business anddeveloped character designed vending machine(7) Support services
Consolidated subsidiary KAJITAKU expanded its sales of household service for individual houses “KAJICloud” by 1.5x
and contributed to the Group’s growth45【① Expanded customers outside the AEON Group】
1H Sales from new customers outside the AEON Group were ¥4.5 billion, 142% YoYExpanded orders from target large facilities with approaching from hygiene control services* Hygiene control
Started preparations for this new business in FY2/14 as new strains of influenza, thenorovirus and other infection problems emerged. A new hygiene control service that adds toconventional cleaning, which emphasizes an attractive appearance, infection prevention
activities like disinfection and dust removal.

■ Use technologies and knowhow, cultivated from commercial facilities, in various use
facilities
1. Develop target facilities such as hospitals, hotels and universities
2. Develop services that fit each application of facilities
3. With using its strength, reduce customers’ anxiety about shifting to the servicei.
Trust and reliability as the largest company in the industry
ii. Human resources including over 16,000 qualified technicians and securing capability
iii. A nationwide network that can respond quickly to an emergency

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【① Expanded customers outside the AEON Group】*Above pictures are part of examples of new customers① Orders for total service of facility management increased because more people
including corporations and institutions increased awareness of reviewing theirfacilities from both its quality and costs② Backed by favorable wind from customers demand, increased orders from
hospitals by hygiene control services, and also increased customers which had
not been core customers such as hotels, universities, laboratories, distribution
centers and factories.
③ Most priority issue is securing human resources
To acquire new customers, securing human resources is the urgent necessity7【② Expanded overseas business steadily】
1H Sales from overseas business were ¥5.1 billion, 155% YoY
Sales significantly increased in China, Malaysia and Vietnam by developing businessfoundations in each county. Expect full-year overseas sales of exceeding ¥10 billion.

(1) China
Some real estate development projects have been postponed because of China’s economic
downturn, but there was only a minimal effect on the Aeon Delight Group.
Changes in the real estate market have little effect on major subsidiaries in China because
public-sector business is a large share of sales. A new Aeon Mall contract isalso contributing to the growth in China.
(2) Malaysia
Accelerated development of customers by enhancing service supply system. Started
business tie-up for cleaning service with local large company in October, this enables thecompany to expand orders from AEON stores which became the largest retailer in Malaysia(3) Vietnam
Opened 3rd AEON store in October in Hanoi (AEON Mall Long Bien). Opened branch office inHanoi (April) enables the company to offer the services in other areas of Hanoi. Strengthen
sales activities to Japanese companies mainly in South Ho Chi Minh and North Hanoi.

8【Delight Way – Effect of the Tianjin Explosion】① Three properties managed by Aeon Delight, including the Aeon MallTianjin Teda (about 2km from the explosion), were damaged by theexplosion on August 12.
② Despite being affected themselves by this tragedy, Aeon Delight
employees in China protected the facilities of customers and worked hardto restore operations.
③ Customers where damage was significant were very impressed with thededication and hard work of the Aeon Delight workforce.

9【③ Grew consolidated domestic subsidiaries】(1) KAJITAKU Co., Ltd.
Sales of “KAJICloud” by KAJITAKU, engages in operation of household
services which expand its demand mainly in urban areas, significantlyincreased.
(Sales for FY2/161H: ¥3.3 billion, about 1.3x YoY)
(2) AEON Compass Co., Ltd.
AEON Compass, engages in domestic and overseas travel businessmainly for corporate customers, progressed well thanks to high operation
rate of rental conference rooms in Tokyo, Osaka and Nagoya etc.

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【④ Initiatives for improving environmental value】① Growth of CFC management servicesi.
The April 2015 enactment of Japan’s amended Fluorocarbon Management Act tightened
restrictions on companies that remove CFCs.
ii. Started training CFC removal technicians in FY2/15
iii. A leader in the Japanese market for CFC management services, backed by a nationwide
network with more than 500 certified technicians*Individuals registered with the Japan Refrigerants and Environment Conservation Organization(2) More progress with hygiene control servicesi.
Strengthened disinfection and virus detection and analysis capabilities; measurements ofairborne dust and other particles
ii. Worked on establishing evaluation standards using ATP measurements* (for visualization ofquality)→ A new service for spaces that require the highest levels of hygiene including clean rooms,operating rooms and other locations of hospitals*Adenosine triphosphate (ATP) is an enzyme that is present in all living cells. ATP is quantified
by measuring light produced through its reaction with an enzyme. The existence of ATP showsthat bacteria and other contaminants remain. This measurement method is used to check thecleanliness of instruments and devices at medical institutions and other locations.

11【Consolidated Balance Sheet】(1) Total assets: ¥129.3 billion (+¥3.3 billion, 102.6% YoY)
• There is no noteworthy fact about assets and liabilities structure, investment and fundraising. There is slight change in net assets due to posting of net income
from operating activities and distribution of dividends.
(2) Changes in assets: Current assets +¥3.6 billion, fixed assets -¥300 million• Current assets: Accounts receivables including note and accounts receivable-trade andelectronically recorded monetary obligations increased by ¥4.2 billion,
and deposit of subsidiaries and affiliates increased by ¥800 million, although cash anddeposits decreased by ¥2.4 billion.
• Fixed assets: Sold holding securities partially(3) Total liabilities: -¥100 million• Accounts payable including notes and accounts payable-trade and Electronically recordedmonetary obligations increased by ¥2.4 billion andcurrent liabilities and others decreased by ¥2.4 billion.
(4) Changes in net assets: +¥3.5 billion• Retained earnings increased by ¥3.3 billion owing to posting of ¥4.6 billion of net income
for 1H and distribution of ¥1.3 billion of dividends(5) Shareholders’ equity ratio• Shareholders’ equity ratio increased by 1.1 points from the previous year results of 59.8%
to 60.9%12

【Consolidated Cash Flow Statement】(1) Operating CF: ¥1.0 billion (-¥6.7 billion YoY)i.
Net cash provided by operating activities was ¥1.0 billion, mainly by posting of income
before income taxes and minority interests of ¥8.2 billion, increase in accounts receivablesof ¥4.1 billion and accounts payables of ¥2.5 billion and payment of income taxes of ¥3.6billion
ii. Down ¥6.7 billion YoY because of timing of settlement date for notes, etc.
(2) Investing CF: -¥2.2 billion (+¥1.7 billion YoY)i.
Net cash used in investing activities was ¥2.2 billion, mainly for purchase of property, plantand equipment and intangible fixed assets of ¥1.3 billion and payments for and collection ofdeposit of subsidiaries and affiliates of ¥800 million.
ii. Up ¥1.7 billion YoY because of decrease in deposits of subsidiaries and affiliates.
(3) Financing CF: -¥1.3 billion (-¥0 billion YoY)
• Net cash used in financing activities was ¥1.3 billion, mainly for payment of dividends(4) Balance of cash and cash equivalents: ¥12.8 billion (-¥1.7 billion YoY)
• Cash and cash equivalents were decreased by ¥2.6 billion YoY to ¥12.8 billion

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【FY2/16 Measures for expanding operating income 】(1) Operating income increased ¥400 million in 1H, almost in line with the full-yearplan for FY2/16 of ¥17 billion (+¥1.2 billion YoY)
(2) Expect to secure operating income of over +800 million YoY in 2H

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【Business Forecast for FY2/16】(1) Business forecasts remained unchanged from the initial forecasts(2) Net sales: ¥280 billion, Operating income: ¥17 billion, Ordinary income: ¥17 billion,Net income: ¥9.4 billion(3) Maintain 12% of ROE

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【Shareholder Return】(1) Dividends for FY2/16: Plan to pay ¥26 of interim dividend and ¥26 of yearend dividend on the assumption that the company will achieve the businessforecasts, totaled ¥52.
(2) Target over 20% of consolidated dividend payout ratio with aiming to pay
dividends stably(3) Internal reserves will be proactively used for investment in innovation, ITand development of human resources for sustained growth and improving
quality16

1718【① Establish competitive advantages Reforms in cleaning service】

Redefine cleaning services in order to establish a competitive edge
(1) Improve worker shortage and productivity (New cleaning robot technologies)
i. Conduct demonstration tests with a company developing a cleaning robot
ii. Aim for improvements by using small cleaning teams and other measures
Increase efficiency by improving cleaning equipment currently used andincreasing communications with job sites(2) Environmental responsibility
i. Start using a water-soluble floor coating with outstanding luster, durability
and safety
ii. Replace chemical cleansers with cleaning products having a small
environmental impact(3) Scientific cleaning (numerical confirmations, visualization of improvements)
i. Scientifically check change in cleanliness before and after cleaning
ii. Use numerical visualization of issues to establish a PDCA cycle for
improvements
iii. Make continuous improvements in operating efficiency

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【① Establish competitive advantages Build new facility management platform】(1) Equipment management platformi.
Use remote control with wireless sensors for efficient constant supervision ofequipment
ii. Use accumulated equipment management data (big data) and Aeon Delight
expertise for proposals to optimize energy conservation and all other aspects ofoperations
iii. Use centralized data management to expand from supplying individual services tothe provision of total facility management packages
iv. Cut costs, lower the environmental load and improve convenience for customers(2) Initiatives to improve servicesi.
Current services• BEMS: Started offering an improved BEMS in September that makes time andlocation comparisons easy
• CFC removal: Aiming for growth by using the nationwide network for services toreduce greenhouse gas emissions
ⅱ. New services• Next-generation remote control: Demonstration test started in October at Aeon
Makuhari• Electricity sale PPS: Now studying a scheme for this service20【(3) Further expand the business in Asia】

Create environmental value in Asia. Contribute to solving environmental issues by
providing comprehensive FMS.
Consider M&A for enhancing local business foundation.
Completed establishing business foundation in China, but “enhance” it for furthergrowth
Expand the business in ASEAN countries for “establishing” business foundation(1) China“Enhance” business foundation
i. Enhance governance system by establishing holdings structure
ii. Expand business further by M&A strategy(2) ASEAN“Establish” business foundation
i. Expand orders from outside the AEON Group by strengthening its sales activities,in addition to AEON Groupii. Seek new target country21

【③ Secure human resources and improve quality 】

We regard the human resources and its quality as an essential management issues.
Make the growth foundation more firmly by strengthening initiatives from a mid-and-longterm points of view.
(1) Recruiting activities to support sustained growthi.
Secure talents for management, global business in Asia and professionals in growthfieldii. Secure field staffs who can receive orders from new customers
 Increasing activities to hire people with experience, including older workers(2) Higher quality to improve customer satisfactioni.
Extensive training centered on ISO for managers of all service centers Develop supervision skills for improving quality and the ability to respond to a crisisi.
Visualization of service quality – Create a method for the scientific assessment ofresults. Establish standards for the entire industry

22【Our goal】
The Aeon Delight Group is dedicated to “creation of environmental value,” the group’s
corporate philosophy, by conducting business activities mainly in Asia.

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