Financial Results for the Fiscal Year Ended February 28, 2022

AEON DELIGHT CO., LTD.
Kazumasa Hamada, President and CEO, Group CEO
April 7, 2022

Contents

1

Financial Report for FY2/22

2

Initiatives for FY2/23©2022 AEON Delight All Rights Reserved2Consolidated Statement of Income
Sales, operating income and ordinary income increased YoY thanks to market share
expansion within existing customers and new customer development.
The impact of COVID-19 on operating income was -1.2 billion yen, far exceeding the initial forecast (-0.5 billion yen).
(100 million yen)

FY2/21 (Ratio to sales)

Net sales

FY2/22 (Ratio to sales)

Difference

PercentagechangeVs. FY2/20

3,000 （100.0%）

3,176(100.0%）175

105.9%

102.9%（12.4%）

23

106.2%

102.4%（7.5%）

18

108.3%

105.3%（5.0%）

5

103.3%

98.3%（4.9%）

5

103.4%

99.0%（3.4%）▲10

91.3%

114.1%

Gross profit

371（12.4%）

394

SG&A expenses

219（7.3%）

237

Operating income

152（5.1%）

157

Ordinary income

152（5.1%）

157

Net income
attributable toowners of parent

116（3.9%）

106©2022 AEON Delight All Rights Reserved

3

Sales by Segment
Sales increased in all 7 businesses YoY. Compared to FY2/20, sales increased in 5 businesses
excluding vending machine services and support services businesses.
(100 million yen)

FY2/21

FY2/22

PercentagechangeFacilities
management

582

615

105.7%

105.6%

Security services

443

472

106.4%

105.8%

Cleaning services

624

669

107.2%

107.4%

Construction work

406

430

105.8%

102.8%

Materials/supplies
sourcing services

530

564

106.5%

110.5%

Vending machineservices

254

263

103.5%

83.5%

Support services

158

160

101.3%

85.5%

Total

3,000

3,176

105.9%

102.9%

Vs. FY2/20©2022 AEON Delight All Rights Reserved

4Profit by Segment
Profits increased in 5 businesses excluding construction work and vending machine services businesses. Construction work wasaffected by lower demand for environmental construction and other high value-added work, while vending machines were affectedby fixed costs such as equipment expenses.

(100 million yen)

FY2/21

FY2/22

PercentagechangeFacilities
management

51.7

54.9

106.2%

103.8%

Security services

33.0

34.3

103.9%

113.1%

Cleaning services

73.2

81.0

110.7%

116.4%

Construction work

38.8

35.8

92.4%

93.9%

Materials/supplies
sourcing services

24.6

25.6

103.8%

102.8%

Vending machineservices

6.5

6.0

93.1%

43.6%

Support services

▲0.7

4.4

-

106.0%

Total

227.3

242.3

106.6%

103.5%

Vs. FY2/20©2022 AEON Delight All Rights Reserved5Consolidated Balance Sheet(100 million yen)

AssetsFY2/21

FY2/22Difference

Current assets

1,100

1,210

110

Tangible fixed
assets

94

70

▲24

Intangible fixed
assets55

56

1

Investments,
etc.

115

91

▲24

Fixed assets

265

218

▲47

Total assets

1,365

1,428

62

Liabilities andnet assets

FY2/21

FY2/22Difference

Current
liabilities

441

438

▲2

Fixed
liabilities

41

35

▲6

482

474

▲8

Shareholder’sequity

866

929

62

Total net assets

882

954

71

1,365

1,428

62

Total
liabilities

Total liabilities andnet assets©2022 AEON Delight All Rights Reserved

6Consolidated Statement of Cash Flows(100 million yen)
FY2/21

Cash flows fromoperating activities

104

FY2/22125

Difference

21(100 million yen)
150

Operating
営業ＣＦ
CF

Investing
投資ＣＦ
CF

Financing
財務ＣＦ
CF

100

50

Cash flows frominvesting activities▲73

Cash flows fromfinancing activities▲53

Cash and cash
equivalents at theend of year

▲3
▲45

69
7

0

(50)

(100)

589

675

85
FY2/21

FY2/22©2022 AEON Delight All Rights Reserved

7

FY2/22 Results and Issues
Basic policies

Results

Customer-oriented
management• Expanded market share among existingcustomers by strengthening account-based
marketing・Service development based on market-in
approachPromotion of DX• Established Customer Support Center(CSC) in 8 branches in Japan• Reduced staffing at a total of 151 facilities
nationwide through the deployment of area
management, securing 115 personnel
resources.
• Improved profitability at facilities with laborsaving.

• The effect for profitability improvement islimited to labor-saving facilities as area
management is still under development;
the overall profitability of the Facilities
Management business remaining
unchanged.

• China business expanded steadily due toorganic growth and M&A of local leading
companies.

• Delay in the effects of the integration of AD
Connect, which has been positioned as acore company for small-and medium-sizedfacilities• Slump in domestic subsidiaries due to theimpact of COVID-19• Stagnation of ASEAN business due to theimpact of COVID-19 in each country

Group Management

Issues©2022 AEON Delight All Rights Reserved 8

Medium-term Management Plan: Progress of KPIs (Key Performance Indicators)
Delay of one to two years for some measures to take effect, partly due to higher-than-expected COVID-19 impact.
KPI (End-FY2/24)

Basic policies
Customeroriented
management

Ratio of sales inside and outside the Aeon Group:
60%：40%End-FY2/22

End-FY2/21

64.4%：35.6%

64.3%：35.7%

Promotion of

Operating margin of 6.0%. Maintain ROE level of 12%

Operating income margin: 5.0%

Operating income margin: 5.1%

DX(full year) through improvement of operating margin.

ROE: 11.7％

ROE: 14.1%

151 facilities

27 facilities

115 staffs

ーBegan improving businessprocesses in headquarterー

52.1 billion yen

52.8 billion yen

7.8％

6.7%

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

Number of facilities with area management introduced
360 facilities

Reduction of 180 on-site posts through area
management
Reallocation of 20% of headquarters staffs to direct
departments through consolidation of functions
Group

Full-year sales of domestic group companies: 65 billion

Managementyen
Overseas sales ratio: over 8%

Convert domestic group finance and accounting
departments to shared services (full year)

Items in blue are items of improvements©2022 AEON Delight All Rights Reserved

9

Business Expansion in Asia
Steady growth in China through new customer development and business domain expansion.
In ASEAN countries, we support customers' business continuity amidst the continuing severe business environment due to theimpact of COVID-19 in each country.

[Overseas business] Net sales: 124.2% YoY; Operating income: 96.7% YoY*

Overseas Business: Net Sales / Operating Income (100 million yen)
中国(Net sales)

マレーシア

ベトナム

営業利益

(Operating income)

247

240
200

インドネシア

24

199

20

16

160

15

16

120

12

80

8

40

4

0

0
Net 1sales

2 income
Operating

FY2/21
FY2/21*Figures are simple totals for operating companies.

Net3sales

4 income
Operating

FY2/22
FY2/22©2022 AEON Delight All Rights Reserved

10

Contents

1

Financial Report for FY2/22

2

Initiatives for FY2/23©2022 AEON Delight All Rights Reserved

11

Positioning for FY2/23

Aim for recovering through solving issues in FY2/22(100 million yen)

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

Net sales

FY2/23 Forecasts(Ratio to sales)
New revenue recognition standard

2,839 （100.0%）

3,100 （100.0%）

Former revenue recognition standard

Former revenue recognition standard

3,176 （100.0%）

Percentage change

109.2%

3,470 （100.0%）

109.3%

Operating income

157（5.0%）

170（5.5%）

108.3%

Ordinary income

157（4.9%）

170（5.5%）

108.3%Net income attributable toowners of parents

106（3.4%）

107（3.4%）

100.9%*Ratio to sales (figures in parenthesis) are calculated based on the former revenue recognition standard for FY2/22 andthe new revenue recognition standard for FY2022.
*Estimated impact of COVID-19 on operating income for FY2/23: -0.8 billion yen (FY2/22: -1.2 billion yen)©2022 AEON Delight All Rights Reserved

12

Major Initiatives for FY2/23
Details of Initiatives

Basic Policies• Reorganize the local branch structure under 8 domestic regional offices, which serve as
points of contact with customers.
Customer-oriented
management• Expand market share among existing customers by enhancing the sales structure andnew customer development.
• Expand the range of customer base of healthcare-related services, which have targeted
healthcare-related facilities, and developing them as pillars of future business.
• Systematize measures to reduce environmental impact; start a consulting business to
support decarbonization for customers.

Promotion of DX• Promote linkage among various systems and increase the amount of information stored
to promote utilization of the AD Platform (enhance output through further accumulation
and analysis of information).
• Accelerate development of new facility management model "area management”.

• Promote growth of domestic group companies by strengthening cooperation amonggroup companies
Group Management• Further growth in China.
• Start preparations to establish an ASEAN head office to strengthen the managementfoundation.

Explanation of each item in detail from the next pages.
©2022 AEON Delight All Rights Reserved

13Customer-Oriented Management① Reorganize the local branch structure as points of contact with customers

Strengthen connection with customers by restructuring
the local branch structure
Through the structural reform on April 1, 2022,● Reorganize the local branch structure under the control of all 8 domestic
regional offices, which are points of contact with customers, in accordancewith customer needs, characteristic of facilities, regional characteristics,
and the location environment.
● Redefine duties at each level (branch head, branch manager, area manager,
site manager)

Each regional branch will establish a system tocommunicate with customers©2022 AEON Delight All Rights Reserved

14Customer-Oriented Management ② Expand market share by strengthening sales structure

Strengthen sales structure to further increase market share among existing customers,
which was achieved in FY2/22, and promote new customer development.

【FY2/22】● Increase market share among existing customers by strengthening accountbased marketing【FY2/23】
By strengthening the sales structure● Further strengthen relationships with existing customers by further promoting
account-based marketing; increase market share through contributions tocustomers’ successes.
● Increase orders received based on relationships with prospective customer baseestablished in FY2/22. Build relationships with potential customers to develop new

customers.
©2022 AEON Delight All Rights Reserved15Customer-Oriented Management ③ Develop healthcare solutions
Expand facility management services by leveraging experience and know-how gained
through "hygiene control" and "New Standard Cleaning” services.

【Initiatives taken】
・In FY2/15, we began offering "hygiene control",a service for hospitals that incorporates
infection control, which led to a significant
expansion of services offered to hospitals(hygiene control, facilities management,
support services, etc.)
・In FY2/21, we developed the "New Standard
Cleaning" as a new standard for cleaning in the
COVID era, leveraging the know-how of"hygiene control", and provide it to various
facilities. We are responding immediately to thechanges in customer needs due to COVID-19.

Amid growing social awareness of the need to prevent epidemics, we expand
facility management services contracted to hospitals, hotels, and various otherfacilities by proposing solutions to improve the hygiene standards.
©2022 AEON Delight All Rights Reserved

16Customer-Oriented Management ④ Develop decarbonization support solutions
Leveraging our accumulated knowledge and technology to develop decarbonization
support solutions【Environmental impact reduction services to date】• Installation of energy-saving equipment• Energy-saving operation of various eqipment• Chlorofluorocarbon (CFCs) management(CFCs management agent, sales of non-CFCs
showcases)• Electricity supply service, etc.

【Future environmental impact reduction services 】• Support for procurement of renewable energy• Support for issuance of environmental certificates, etc.

Establish a dedicated organization to provide total support for customers' decarbonization
A new pillar of our business based on the principle of Creation of “Environmental Value”©2022 AEON Delight All Rights Reserved

17Promotion of DX ① Promote Utilization of AD Platform
Promote utilization of AD Platform through linkage of various systems andfurther accumulation of information stored
Increase in facility information through remotecontrol of facilities in conjunction with "areamanagement" development

Increase in customer information byincreasing accounts

input

input

AD Platform
A system that collects and analyzes a variety of data, including customer
and facility information, and processes it into valuable information.

outputValuable information that contributes to solving customer issues©2022 AEON Delight All Rights Reserved18Promotion of DX ② Accelerate development of area management
Aiming to solve labor shortages and quickly reform profit structure throughaccelerated development of area management and digitalization of various operations【FY2/22】
Reduced manpower of 151 facilities throughthe use of remote supports by CSC and various
sensors and cameras. Reallocated total of 115
specialized personnel to newly commissioned
facilities, sales and construction departments.

【FY2/23】●CSC with enhanced equipment in Kanto Regional Office

Labor-saving at 100 new facilities(278 facilities in total)
Aim to redeploy 40 specialized personnel(155 in total)
At the same time, promote R&D for DX in security,
cleaning, and support businesses©2022 AEON Delight All Rights Reserved

19Group Management ① Initiatives by Group Companies in Japan
Aiming for growth as a group while leveraging the expertise of each company
Company name

Initiatives

AEON DELIGHT CONNECT

Concentrate sales resources on companies with small andmedium-sized stores nationwide

Hakuseisha

Expand market share among existing customers

Kankyouseibi

Expand market share in the North-Kanto area throughcollaboration with our Kanto branch

AEON COMPASS

Steadily respond to demand recovering from the COVID-19©2022 AEON Delight All Rights Reserved

20Group Management ② Business expansion in Asia (China)
Aim for further growth through aggressive M&A and businessalliances in addition to organic growth

Organic growth through expansion of contracts inthe priority target areas of mid- to high-end
shopping centers, hospitals and nursing homes,
and redevelopment areas

Growth through M&A and business alliances•••

Acquisition of expertise
Expansion of business areas
Strengthening customer base, etc.

 In China, we are expanding our business areas, including operation
services at logistics facilities (top photo) and refreshment supply
stations (bottom photo).

Continue to drive our overseas business as the largest growth area in Asia
©2022 AEON Delight All Rights Reserved21

Group Management ③ Business expansion in Asia (ASEAN countries)
Strengthening management base for medium- to long-term growth

Continue to support customers' facilities in
ASEAN countries while responding tochanges due to COVID-19 in each country
In addition, we have begun preparations toestablish an "ASEAN Headquarters" tostrengthen our management base for mid- tolong-term growth and to chart a new growthstrategy for each country.

● Supporting customers' business
continuity amidst a continuing difficult
business environment under COVID-19©2022 AEON Delight All Rights Reserved

22

Shareholder Return
Dividends have increased for 17 consecutive years since FY2/06.
Aiming for 18 Consecutive Years of Dividend Increase

84 yenPlan to pay
per share for FY2/22 as forecasted at the
beginning of the fiscal year
including 74 yen of ordinary dividend (payout ratio of 35%) and
10 yen of commemorative dividend for AEON DELIGHT's 15th anniversary

For FY2/23, based on the assumption that the performance
forecasts will be achieved,
Plan to pay dividends of85 yen with payout ratio of 40%*

Plan to increase the dividend from the previous fiscal year (includingcommemorative dividend) by applying the dividend payout ratio of 40%,
which had been planned within the 3 years of the medium-term plan, in FY2/23.
*In the case of net income attributable to owners of parent is 10.7 billion yen.

In order to eliminate concerns about dilution of shares, 3.5 million shares out of
4.1 million shares of treasury stock (ownership ratio of 7.66%) are scheduled to be retired.
©2022 AEON Delight All Rights Reserved23

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◇ All figures of less than 100 million yen have been rounded down
*Rounded down to the nearest 10 million yen only on p. 5
◇ Percentages have been rounded off to one decimal place

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

IR Contact : Emiko Ishii
President’s Office, PR・IR GroupTEL 03-6895-3892
Please contact us on our website.
https://www.aeondelight.co.jp

Based on information available up to the date of publication (April 7, 2022)
These forecasts have been prepared and are subject to change due to various factors going forward.