Financial Results for the Six Months Ended
August 31, 2017

Ippei Nakayama, President and CEO
October 5, 2017

Contents（１） Financial Report for the First Half of FY2/18（２） Initiatives for Management Issues（３） Initiatives for the Second Half of FY2/18©2017 Aeon Delight All Rights Reserved2

FY2/18 1H Topics( 1 ) Expansion of IFM* to Asia

*IFM: Integrated Facility Management① Established sales office in Shanghai (April)② Established IFM Global Sales Promotion Headquarters (June)③ Started consulting business by a subsidiary General Services, Inc.

( 2 ) Utilization of Technology① Established Technology Solution Division (June)② Introduced facility open network system into Japan③ Evolved vending machines (digital signage, settlement function)( 3 ) Business expansion in Asia
① China: Increased orders from targeted mid to high-end facilities©2017 Aeon Delight All Rights Reserved3Consolidated Income Statement
Thanks to the promotion of group management structure, domestic and overseas subsidiaries
contributed to the growth. Sales and earnings increased, and all-time high earnings were reported.
(100 million yen)
FY2/17 1H(Ratio to sales)

Net sales

FY2/18 1H(Ratio to sales)

Difference

Percentagechange1,514 （100.0%） 1,518 （100.0%）4

100.3%

Gross profit

195 （12.9%）200 （13.2%）

4102.5%

SG&A

110（7.3%）

112（7.4%）

1101.7%

Operating income

85（5.6%）88（5.8%）3103.5%

Ordinary income

85（5.6%）88（5.8%）3104.4%

Net income attributableto owners of parent

53（3.5%）55（3.7%）2104.3%©2017 Aeon Delight All Rights Reserved

4

Business Expansion in Asia
Changes in overseas sales for 1H(million yen)
7000

China中国

Malaysia
マレーシア

Vietnam
ベトナムOverseas 1H sales were 104.1% YoY
Operating income grew 2.3 times YoY*China■ Managed more mid to high-end facilities, which6000

are the primary target■ Shifted to a highly profitable business structure
by changing the business portfolio■ Increased new orders from several large
properties in the second half

5000
4000

Malaysia
3000■ Expanded service lineup to include store

renovations and other activities

2000

Vietnam1000
0FY2/152014
1H

FY2/162015
1H

FY2/172016
1H

FY2/182017
1H■ Expanded new customers such as theJapanese embassy in Hanoi, in addition tolarge-scale commercial facilities*Numbers are sums of the performance of individual companies.
©2017 Aeon Delight All Rights Reserved5

Sales by Segment
YoY increase in 5 segments. Support services grew mainly owing to the IFM business in theprevious fiscal year.
(100 million yen)
Construction work is affected by the partial segment reorganization.
PercentagechangeFY2/18 1H
FY2/17 1H

Facilities management

254

261

102.8%

Cleaning services

267

274

102.6%

Security services

204

217

106.8%

Construction work265

241

90.7%

Support services

94101

107.2%

Materials/supplies
sourcing services

258

251

97.2%

Vending machineservices169

170100.6%

Total

1,514

1,518

100.3%* Executed partial reorganization between each of the cleaning, security, construction, and support segments(Waste material commissions support ⇒ Cleaning, installation of safety camera equipment , construction works projects ⇒ security)©2017 Aeon Delight All Rights Reserved

6Consolidated Balance Sheet（100 million yen）

FY2/17

FY2/181H

Current
liabilities

44045413

Fixedliabilities

3329▲3474484

10

Shareholder’sequity

885

92741▲2Total net assets

920

9644353

Total liabilities
and net assets

1,395

1,44853Assets

FY2/17

FY2/181H

Difference

Current assets

1,124

1,18056

Tangible fixedassets

9094

3Intangible fixedassets

9086▲4Investments,etc.

8987▲1Fixed assets

270268

Total assets

1,395

1,448

Liabilities andnet assets

Totalliabilities

Difference©2017 Aeon Delight All Rights Reserved

7

Consolidated Cash Flow Statement(100 million yen)

AssetsFY2/171H

FY2/181H

Difference(100 million yen)
Operating
営業ＣＦCF60

Cash flows fromoperating activities

4749

140

Cash flows frominvesting activities

21▲15▲3620

Cash flows fromfinancing activities▲10▲16▲50

Cash and cash
equivalents at the end ofyear

25132776(20)FY2/17 1H

Investing
投資ＣＦ
CFFinancing
財務ＣＦ
CF

FY2/18 1H©2017 Aeon Delight All Rights Reserved

8

Contents（１） Financial Report for the First Half of FY2/18（２） Initiatives for Management Issues（３） Initiatives for the Second Half of FY2/18©2017 Aeon Delight All Rights Reserved

9Aeon Delight’s Vision for 2025
By 2025, Japan’s severe labor shortage along with the evolution andincreasing use of technologies will fundamentally alter the way of property
management.

Vision for 2025
Become an IFM company that maximizes customer
profits through technology

Use technology for structural business reforms
Create a next-generation property management model©2017 Aeon Delight All Rights Reserved

10Create Next-generation Property Management Model
Surveillance system screens in use at large-scale commercial facilities in Japan

Remote surveillance and automatic control of a climate control
system for large-scale commercial facilities by the open network
systemBy using a platform with open innovation, this operating
structure allows updating next-generation property
management models by adding a variety of technologies
and systems.

©2017 Aeon Delight All Rights Reserved

Business Structural Reform: Micro-markets
Micro-markets that use advanced technologies (fully automated workplace shops)
Started a demonstration test in August at Aeon Mall Funabashi©2017 Aeon Delight All Rights Reserved

12

Contents（１）Financial Report for the First Half of FY2/18（２） Initiatives for Management Issues（３）Initiatives for the Second Half of FY2/18©2017 Aeon Delight All Rights Reserved13

Measures for 2H of FY2/18
YoY changes inGross profit

Priority measures
Non-consolidated

Implementation of priority measures for sales activity, construction andmaterials/supplies sourcing services

Sales
activity

Acquisition of new orders

Construction

Construction for tenant changes, interior construction at commercial
facilities, and closely examining estimate calculations

Materials/
supplies sourcing

Consolidation of materials and supplies sourcing of Aeon Group
companies, Packaging materials for Top Value+300 million yen（Domestic subsidiary）

AEON Compass

Business support services, including the event business andrental conference rooms

KAJITAKU

Strengthening of sales activity to major customers, Expansion of "KajiCloud" sales

AZSExpansion of construction contracts for small stores

Hakuseisha

Recovery in profitability+

180 million yen（Overseas subsidiary）

Overseas

China： Expansion of orders from mid to high-end facilities inredevelopment areas

220 million yen+©2017 Aeon Delight All Rights Reserved14

Expand contracts for renovation
Steadily expand contracts for store designing

SPORTS AUTHORITY Yuraku-cho Infos Store (Opened on September 1, 2017)©2017 Aeon Delight All Rights Reserved

15

Business Forecasts for FY2/18(100 million yen)

Net sales

FY2/17 Results（Ratio to sales）

2,947 （100.0%）

FY2/18 Forecasts（ Ratio to sales ）Percentage change

3,050 （100.0%）

103.5%

Operating income

172（5.9%）180（5.9%）

104.3%

Ordinary income

173（5.9%）180（5.9%）

103.6%Net income attributableto owners of parent

102（3.5%）

107（3.5%）

104.5%©2017 Aeon Delight All Rights Reserved

16Shareholder Return
Increased dividends for 12 consecutive years since FY2/06 and aim for 13 years of growth(yen)

(%)

70

Dividend
配当金

Commemorative
記念配当
dividend

Dividend
配当予想（円）
forecast (yen)Dividend yield
配当性向6045.06115040.035.030.04025.0520.03046204850525415.040341015817.5

2210.0275.0900.0
FY 2/05 FY 2/06 FY 2/07 FY 2/08 FY 2/09 FY 2/10 FY 2/11 FY 2/12 FY 2/13 FY 2/14 FY 2/15 FY 2/16 FY 2/17 FY 2/18
2004
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017©2017 Aeon Delight All Rights Reserved17

Thank you for your attention.
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, and performance ofAEON DELIGHT.
◇ These statements are based not only on past performance, but also on assumptions based on information currently available tothe 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 stated otherwise.
◇ 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.
(Stock code: 9787)

IR Contact Yoshiyuki KyomotoGroup Strategy Div.
TEL 043-351-2563
Or visit our website at:
ｈｔｔｐ：//ｗｗｗ．ａｅｏｎｄｅｌｉｇｈｔ．ｃｏ．ｊｐ

This presentation has been prepared based on the information available as of the date of the presentation (October 4, 2017). The business
forecasts may be revised due to various factors that may arise in the future.

RreferenceMid-term Management Plan (FY2/18-FY2/20) Three basic policies
Recognition of current situation
Future forecasts

Declining labor force ・aging society

Shift in economic
center of gravity(from Europe and the United States⇒ emerging countries)

Revolutionary
evolution oftechnology utilization

Expected impacts to us

Our mid to long-term policy○Domestic labor shortage○Companies focus on corebusiness○Progress of urbanizationin emerging countries

ＩＦＭ

Asia

○High quality FM needs○Emergence of
new business model○Competition withdifferent industries

TechnologyFY 2/20

TargetOperating income/Ordinary incomeNet sales（100 million yen） ■ Operating income（100 million yen）

3,600

3,800

■ Net income

250

220200

172

3,300

2,947

150

2,800

1002,30050

1,8000FY2/172016（Results）

Growth rate
(vs. end-FY2/17)

FY2/182017

FY2/192018

FY2/20 （FY）
2019

128102

FY2/172016（Results）

FY2/182017

FY2/192018

FY2/20 （FY）
2019

Net sales

Operating income

Net income

122.1%

127.5%

125.0%