Financial Results for the Fiscal Year Ended February 29, 2024

AEON DELIGHT CO., LTD.
Kazumasa Hamada, President and CEO, Group CEO
April 9, 2024

Contents

1

Financial Report for FY2/24

2

Initiatives for FY2/25©2024 AEON Delight All Rights Reserved 2

Consolidated Statements of Income
Sales increased due to market share expansion among existing customers and the new customer acquisition.
However, operating income and ordinary income declined, as the increase in gross profit was not enough toabsorb the rise in SG&A expenses, mainly due to the impact of the Cleaning business, whose profitability
declined significantly due to higher labor costs.
(100 million yen)

FY2/23(Ratio to sales)

FY2/24(Ratio to sales)

Net sales

3,037(100.0%)3,248

Gross profit414(13.6%)

SG&A expenses

256

Operating income

Difference

Percentagechange(100.0%)210106.9%

426(13.1%)

11

102.8%(8.4%)

273(8.4%)

17

106.8%

158(5.2%)

152(4.7%)▲5

96.3%

Ordinary income

160(5.3%)

154(4.8%)▲5

96.7%

Net income
attributable toowners of parent

101(3.3%)

107(3.3%)

5

105.5%©2024 AEON Delight All Rights Reserved

3

Sales by Segment
Sales increased in all 7 segments. Double-digit growth in the Construction work segment, which expanded
contracting for energy-saving-related construction, and the Materials/supplies sourcing services segment,
which expanded orders for various materials.

(100 million yen)

FY2/23

FY2/24

Facilities
management

647

695

107.3%

Security services

494

509

102.9%

Cleaning services

683

704

103.1%

Construction work

520

592

113.7%

Materials/supplies
sourcing services

415

463

111.5%

Vending machineservices9496101.6%

Support services

180

188

104.1%

3,037

3,248

106.9%

Total

Percentage change©2024 AEON Delight All Rights Reserved 4

Profit by Segment
Profits increased in 5 segments and decreased in 2 segments.
Profitability declined in the Security services and Cleaning services segments due to increases
in outsourcing costs and personnel costs and profit declined.

(100 million yen)

FY2/23

FY2/24

Percentage change

Facilities management

58.1

59.1

101.8%

Security services

32.7

31.0

94.8%

Cleaning services

70.1

52.7

75.2%

Construction work

40.8

53.2

130.4%

Materials/supplies
sourcing services

19.9

23.2

116.2%

Vending machineservices

10.8

12.9

119.1%

Support services

4.6

5.4

117.8%

242.3

237.8

100.2%

Total©2024 AEON Delight All Rights Reserved 5

Consolidated Balance Sheet(100 million yen)Feb. 2023

Feb. 2024

Difference

Current assets

1,295

1,399

104

Property, plantand equipment

64

64

▲0

Intangible
assets63

60▲2

Investments,
etc.

82

76

▲5

210

202

1,506

1,602

AssetsNoncurrent assets

Total assets

Liabilities andnet assets

Feb. 2023

Feb. 2024

Difference

Current
liabilities

484

534

50

Noncurrent
liabilities

28

25

▲2

512

560

48

Shareholder’sequity

959

999

39

▲8

Total net assets

993

1,042

48

96

Total liabilities andnet assets

1,506

1,602

96

Total
liabilities©2024 AEON Delight All Rights Reserved 6

Consolidated Statement of Cash Flows(100 million yen)(100 million yen)
Operating
営業ＣＦ

Feb. 2023

Feb. 2024

Difference

200

CF

Investing
投資ＣＦ
CF

Financing
財務ＣＦ
CF

150

Cash flows fromoperating activities

88

Cash flows frominvesting activities▲107

Cash flows fromfinancing activities

▲61

185
▲43

96

100
50

63
0

▲69

▲7

(50)
(100)

Cash and cash
equivalents at theend of year

599

677

77

(150)

FY2/23

FY2/24©2024 AEON Delight All Rights Reserved 7

Major Initiatives in FY2/24 ① Customer-oriented management
Promoting various measures to increase our market share

Initiatives

Further strengthen
account sales

Active proposals forsmall-scale repairs led
by on-site staffs

Strengthen construction
works

Results・Through strengthening relationships with customers through accountmanagement, we increased the market share within existing customers by
expanding the services and by contracting with the same customer to provide
services to properties at other locations.
・Since our services and expertise are highly evaluated, we received new orders
from a wide range of facilities.

・Sales increased through active proposals for small-scale repairs
led by on-site staffs to maintain and improve"safety and security" , “functionality” and "aesthetics" of facilities.

・Orders increased for energy-saving-related construction projects, where demandis rising in line with higher energy costs.
・Orders for various types of work increased through aggressive proposals ofrenovation and repair work for facilities managed.

©2024 AEON Delight All Rights Reserved 8

Major Initiatives in FY2/24 ② Promotion of DX-1
Updated "AEON Delight Platform," a data linkage platform, by installing additional functions.
Streamlining sales activities and preventing opportunity losses.
(Additional Implementation)
・Transaction analysis tool byindustry/property use
・Tool to visualize theprogress of planned repairs

Customer Support
CenterAeon Delight
Platform

Facilities underManagement

Existing
customers

Information on Facility
Management andOperations

Solutions that contribute to problemsolving

Account
Managers
Customer/Industry
Information

Collect, analyze, and process various
data into valuable information

Potential
customers*Customer Support Center (CSC): The function is to remotely control multiple facilities by utilizing various systems/sensors,
and also to consolidate customer facility information/requests in each region.
©2024 AEON Delight All Rights Reserved 9

Major Initiatives in FY2/24 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” system

Through the consolidation of some operations
into the Customer Support Center and the useof digital devices to improve the efficiency of
on-site operations

Labor-saving at 47 new facilities(cumulative 320 facilities in total)
Creation and reallocation of about
52 personnel(cumulative total of about 219)
*Area Management
A facility management model in which multiple facilities aremanaged on an area-by-area basis, mainly through remotecontrol and patrol services.

● DX of facility administration operations throughuse of cameras (top) and sensors (bottom)©2024 AEON Delight All Rights Reserved 10

Major Initiatives in FY2/24 ③ Group Management-1
Despite the recovery in AEON compass' performance and the contribution from Ask
Maintenance, sales increased but profits decreased for all domestic group companies due tostruggles at building maintenance subsidiaries.

Company name

Major initiatives

AEON DELIGHT CONNECT
CO., LTD.

Sales increased due to expanded contracts for maintenance work and various typesof construction work for restaurant chains and convenience stores, etc., but profits
decreased due to higher personnel costs, etc.

AEON compass Co., Ltd.

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 renewal contracts and orders for repair andmaintenance work, but profits decreased due to higher labor costs, etc.

Hakuseisha CO., LTD.

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

Ask Maintenance

In 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 togrowth in new orders.
©2024 AEON Delight All Rights Reserved 11

Major Initiatives in FY2/24 ③ Group Management-2
In overseas business, sales increased to 107.6% YoY, but operating income decreased to 79.7% YoY.
China: Sales increased but profits decreased mainly due to an increase in SG&A expenses, despite steadybusiness expansion through expansion of market share within existing customers and new customer
acquisition.
ASEAN: Sales increased in countries where we operate. On the other hand, profit decreased due to the impactof the rising personnel costs in Indonesia and Malaysia where the Employment Law was revised.
(Operating income(Net sales/
100 million yen)

China

Malaysia

VietnamIndonesia

Operating income/100 million yen)

400
350

32
357

28

331

300

24

250

20

19

200

15

16

150

12

100

8

50

4

0

0
Net sales

Operating income

Net sales

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

Operating income

FY2/24©2024 AEON Delight All Rights Reserved 12

Contents

1

Financial Report for FY2/24

2

Initiatives for FY2/25©2024 AEON Delight All Rights Reserved 13

Positioning in 2024
Further expand market share while accelerating the transformation into asustainable growth business model.

FY2/23 Result(Ratio to sales)

FY2/24 Forecast(Ratio to sales)

3,248(100.0%)3,400(100.0%)104.7%

Operating income

152(4.7%)

160(4.7%)

105.3%

Ordinary income

154(4.8%)

160(4.7%)

103.9%Net income
attributable toowners of parent

107(3.3%)

104(3.1%)

97.2%(100 million yen)

Net sales

Percentagechange©2024 AEON Delight All Rights Reserved 14

Accelerating Transformation to a Sustainable Business Model (1)Accelerate transformation into a sustainable business model withdigitalization of business processes and services

Offer data-based services
Improve operational efficiency andman-hour productivity

Digitization ofservices

Offering newservices

Data Management
Digitization of businessprocesses
Customer

CSC

Headquarters
and branches

Site Information on facility management
and operation (facility ledger,
measurement data, repair history etc.)
 Requests from customers

Partnercompanies

AD Platform©2024 AEON Delight All Rights Reserved 15

Accelerating Transformation to a Sustainable Business Model (2)Devote resources to strengthen human resources and DX/IT tosupport a sustainable business model

Key Areas1

Human Resources Develop management personnel
 Increase the number of global human resources

Provide services with higher added value through the sophistication and diversification of humanresources.
Key Areas2

DX/IT Accelerate development of digitized business processes Strengthen data management functions

Through a major change in the work style of on-site staffs, increase the time spent face to face withcustomers and build a system that allows us to make data-based proposals.
©2024 AEON Delight All Rights Reserved 16

Expand Market Share and Improve Profitability
Aim to further expand market share while offsetting cost increases associated withrising outsourcing and labor costs through measures to improve profitability.

Items

Major initiatives
 Expansion of share within existing customers (expansion ofservices provided, entrustment of non-consigned facilities,
acquisition of non-consigned materials)

Increase sales

 Acquisition of new customers
 Expansion of contracts for various types of construction, including
energy-saving construction work

 Promotion of unit price review
Improve profitability

 Strengthening of estimation assessment and negotiation inconstruction©2024 AEON Delight All Rights Reserved 17

Business Expansion in Asia
Continue to promote business expansion in Asia, aiming to improve profitability
and increase sales and profits in FY2/25.
Area

China

Initiatives
 Strengthen group management centered on the Aeon Delight (Jiangsu)
Comprehensive Facility Management Service Co., Ltd. (formerly Aeon Delight
Jiangsu), the business holding company. Expand business and improve
profitability by developing know-how of core operating companies.
 Aggressive growth investment in priority areas such as DX and energy saving.

 Malaysia: Promote improvements in quality and productivity through the active
introduction of SLA*ASEAN

 Vietnam: Continue to strengthen business foundation and respond to expand of
Aeon Group store openings

 Indonesia: Promote improvement of quality and productivity through businessgrowth by increasing market share within the Aeon Group and introduction of
SLA.
* SLA (Service Level Agreement):
Form of contract based on service outcomes agreed upon between the service provider and the customer.
©2024 AEON Delight All Rights Reserved 18

Dividends
Dividends have increased for
Aiming for

19 consecutive years since FY2/06.

20 consecutive years of dividend increase

86 yenPlan to pay
per share for FY2/24 as forecasted
at the beginning of the fiscal year (Actual payout ratio: 39.1%)

For FY2/25, based on the assumption that the performance
forecasts will be achieved,
we plan to pay dividends of

87 yen (Payout ratio: 40.3%),©2024 AEON Delight All Rights Reserved 19

Acquisition of Treasury Stock

Acquired treasury stock to improve capital efficiency andstrengthen shareholder returns

0.7

Repurchase of up tomillion shares,
or 1.44% of outstanding shares (excluding treasury stock)(Acquisition period: April 22, 2024 to December 30, 2024)

Improve capital efficiency and strengthenshareholder returns©2024 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 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 (April 9, 2024)
These forecasts have been prepared and are subject to change due to various factors going forward.

Reference: Progress in KPIs (Key Performance Indicators) of the Previous Medium-Term Management Plan (FY2/22-FY2/24)

Measure Items (KPI)

FY2/24 (Target)

FY2/24 (Result)

Customer-oriented Ratio of sales inside/outside the AEONGroup *
management

40%

37.8％

Number of facilities introducing area
management

360 facilities

320 facilities

Reduction in number of on-site staff
through area management

180 staffs

219 staffs

Promotion of DX

Allocation of staffs in the headquarters
to front office by consolidating head
office functions
Sales of domestic group companies

Group
Management

Overseas sales*
Domestic group finance andaccounting departments

20 %△(Increase in headquarter
staffs)65.0 billion yen

60.6 billion yen

8% or more

9.9%

Shift to sharedservices〇* Calculation based on the former revenue recognition standard©2024 AEON Delight All Rights Reserved