Financial Results for the Three Months Ended
May 31, 2022

AEON DELIGHT CO., LTD.
July 5, 2022

Contents

1

Financial Report for Q1 of FY2/23

2

Medium-term Management Plan (FY2/22-FY2/24)
Progress against KPI

３ Initiatives for Q2 Onward to Achieve the Full-year Target©2022 AEON Delight All Rights Reserved2Consolidated Statement of Income
Sales increased and profits decreased YoY, lagging behind the initial plan.
(Factor analysis is shown on the next page)
FY2/22 1Q(Ratio to sales)

Net sales[Former Revenue
Recognition Standard]

711（100.0%）［796］

Gross profit

97（13.7%）

SG&A expenses

60（8.5%）

Operating income

37（5.2%）

Ordinary income

37（5.3%）25（3.5%）

Net income
attributable toowners of parent(100 million yen)

FY2/23 1Q(Ratio to sales)

717
［801］

Difference6(100.0%）［4］

PercentagechangeVs.
FY2/20 Q1

102.4%
100.9%［100.6％］ ［100.3％］

97（13.6%）▲099.8%101.2%

64（9.0%）4

107.0%

110.8%

32（4.6%）▲488.0%86.4%（4.6%）▲488.0%86.3%（3.1%）▲289.6%108.5%

3322•

Figures for "Difference", "Percentage change" and "Vs. FY2/20" are compared to actual figures for the same period of the previous year and FY2/20
calculated based on the new revenue recognition standard.
Figures in parentheses are comparisons with figures under the former revenue recognition standard.
* "(Ratio to sales)" is calculated based on the new revenue recognition standard.
©2022 AEON Delight All Rights Reserved3

Factor Analysis of Consolidated Results

Status in Q1

Status of net
sales andoperating income

Sales increased YoY, mainly due tothe growing sales from outside theAEON Group, despite the negative
impact of external factors. On theother hand, operating income
decreased YoY due to aggressive
upfront spending on digitalization(DX) and other factors.
Net sales and operating income
lagged behind the full-year plan.

Current status
・Sales from outside the AEON Group increased through expanding
market share within existing customers and developing new customerbase.
・On the other hand, shortages of various materials and equipment anddelays in procuring due to COVID-19 and the Russian-Ukrainian crisis,and other factors affected segment sales. In particular, there were
project delays and cancellations in the Construction work business.
The shortage of parts and materials has been recovering for someitems.
・Actively invest in DX for business model transformation, including areamanagement.
・Strengthen proposal-based sales in response to growing needs forenergy conservation and power saving in light of rising fuel andelectricity charges.
・Cost of sales rose in the Materials/supplies sourcing services businessreflecting global price trends. Steadily reflecting the trends in selling
prices.

The impact of COVID-19 and Ukrainian crisis on operating income was 250 million yen©2022 AEON Delight All Rights Reserved4

Sales by Segment
Sales increased in 5 businesses thanks to an increase in market share within existing customers and the development of newcustomers, while sales decreased in 2 businesses.
Construction work: Significant decrease in sales due to the impact of material shortages and procurement delays;
Vending machines services: Decrease in sales due to the impact of changes in consumer sentiment.
Percentage
FY2/22 1Q
FY2/23 1Q
changeFacilities management(100 million yen)Vs.
FY2/20 Q1155
［155］

161
［160］

104.0%［103.8％］108.1%［107.8％］

Security services

116

119

102.5%

107.1%

Cleaning services

165

165

100.0%

107.6%

Construction work

112

102

91.8%

85.6%

99
［141］

102
［145］

103.0%［102.6％］111.5%［111.7％］

22
［65］

21
［63］

99.9%
［97.1％］

86.0%［82.3％］

41

44

108.3%

91.5%

711
［796］

717
［801］

100.9%［100.6％］102.4%［101.4％］[Former Revenue Recognition
Standard]

Materials/supplies
sourcing services[Former Revenue Recognition
Standard]

Vending machineservices[Former Revenue Recognition
Standard]

Support servicesTotal[Former Revenue RecognitionStandard]©2022 AEON Delight All Rights Reserved

5Profit by Segment
Profits increased in 3 businesses and decreased in 4 businesses.
Security services: Increase in initial investment associated with the start-up of new consigned facilities;
Cleaning services: Decrease in orders for alcohol sanitation and cleaning.
Construction work: Significant decrease in sales; Materials/supplies sourcing services: Rising cost pressure

FY2/22 1Q(100 million yen)

FY2/23 1Q

PercentagechangeVs.
FY2/20 Q1

Facilities management

12.7

13.7

107.6%

95.7%

Security services

7.9

7.3

92.1%

100.5%

Cleaning services

19.7

16.8

85.2%

97.5%

Construction work

10.6

6.9

65.0%

63.4%

Materials/supplies
sourcing services

6.5

6.1

93.7%

86.4%

Vending machineservices

1.1

2.0

179.4%

81.1%

Support services

1.1

1.6

136.0%-Total

60.0

54.6

91.0%

93.8%

©2022 AEON Delight All Rights Reserved

6Consolidated Balance Sheet(100 million yen)

Liabilities andnet assets

2022/2Difference

Assets2022/22022/5Difference

Current assets

1,210

1,194

▲16Current
liabilities

438432▲6Tangible fixedassets

7069▲1Fixedliabilities

3532▲2Intangible
fixed assets

56625474464▲9Investments,etc.

9191▲0Shareholder’sequity

929920▲9Fixed assets

218

222

4Total net assets

954952▲2Total assets

1,428

1,416

▲11Total liabilities
and net assets

1,428

1,416

▲11Totalliabilities

2022/5©2022 AEON Delight All Rights Reserved

7

Major Initiatives in FY2/23 Q1 ① Customer-oriented management
Promoted various initiatives set at the beginning of the period to expand market share.

Initiatives
Strengthen customer
contacts byreorganizing the area
branch system

Details・Implemented structural reforms in April 2022, reorganized the area branch system under
the control of 8 domestic branches to match each regional characteristic.
・Redefined duties at each level from operations to management at branch offices
・Started educational programs for branch managers to foster a mindset and improve skills
as a regional manager

Enhance sales

・Expanded share within existing customers with enhanced account-based marketing

structure・Started providing services to various facilities with customer-oriented proposals

Develop consulting

・Started development of consulting business through solution sales in two specializedbusiness throughareas, "healthcare-related market" and "decarbonization support market," by establishingsolution sales

a new dedicated sales department©2022 AEON Delight All Rights Reserved

8

Major Initiatives in FY2/23 Q1 ② Promotion of DX-１
Promoted utilization of the Aeon Delight Platform by linking systems, collecting
information on customer requests, various facilities, etc.
Increase in customer information byincreasing accounts

Increase in facility information due toexpand in the number of contracts

input

input

Aeon Delight 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

Utilize to improve sales activity efficiency and operational quality©2022 AEON Delight All Rights Reserved9

Major Initiatives in FY2/23 Q1 ② Promotion of DX-２
Accelerated the development of "area management", a new facility management model,
to build a sustainable business model

Labor-saving facility management operations byautomating inspection work using OCR (OpticalCharacter Recognition) cameras and sensors,and consolidating some operations into theCustomer Support Center (CSC), which has
remote monitoring capabilities.
Accelerated the development of area
management, which manages multiple facilities
in areas, centered on peripatetic activities●Kanto Regional Office CSC

Labor-saving at 53 new facilities(231 facilities in total)
Aim to redeploy 20 specialized personnel(135 in total)
to capture new opportunities to gain revenues©2022 AEON Delight All Rights Reserved10Major Initiatives in FY2/23 Q1③ Group Management-1 (Domestic group company)
AEON COMPASS, a travel-related business, recovered significantly
AEON DELIGHT CONNECT and other building maintenance subsidiaries struggle

Company nameAEON COMPASS

Outline・Steady response to recovering demand for business travel and physicalevents, which are on the rise, led to a significant recovery in businessperformance.

AEON DELIGHT
CONNECT

Hakuseisha

・The business environment continues to be challenging due to following
factors: the postponement of customers' capital investment plans due tochanges in the business environment, shortage/delays in procurementof materials and equipment due to COVID-19 and the Russian-Ukrainiancrisis, and an increase in initial investment in new consignment projects.

Kankyouseibi©2022 AEON Delight All Rights Reserved11

Major Initiatives in FY2/23 Q1③ Group Management-2 (Business Expansion in Asia)
Sales increased in both China and ASEAN businesses (126.3% YoY).
On the other hand, overall operating income in overseas business decreased (90.0% YoY) due to a temporary
increase in quarantine response costs following the spread of COVID-19 in Wuhan, China from February toMarch, and higher labor costs following a change in Indonesian law.
In the ASEAN region, where further growth is expected over the medium to long term, we have begun
preparations for establishing an ASEAN head office, just as in China, which is ahead of other countries instrengthening its management base.
（Operating income（Net sales

China: 100 million yen）

Malaysia

Vietnam

8060

Indonesia

Operating income: 100 million yen）

871

656
4.2

3.8

40

20

042

Net sales

Operating income

Net sales

FY2/21 1Q* Fiscal year of overseas businesses ends in December. Figures are simple totals of operating companies.

Operating income0

FY2/22 1Q©2022 AEON Delight All Rights Reserved

12

Contents

1Financial Report for Q1 of FY2/23

2Medium-term Management Plan (FY2/22-FY2/24)
Progress against KPI

３ Initiatives for Q2 Onward to Achieve the Full-year Target©2022 AEON Delight All Rights Reserved

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

Basic
PolicyCustomeroriented
management
Promotion ofDX

KPI (End-FY2/24)
Ratio of sales inside/outside the AEON Group
60%:40% (total)
Operating income margin of 6.0%,
sustaining the standard of ROE 12% (full-year) throughincreasing operating income
Number of facilities introducing area management: 360(total)
Reduction in number of on-site staff through area
management: 180 (total)
Allocation of 20% of staffs in the headquarters to front
office by consolidating head office functions

Groupmanagement

Net sales of 65.0 billion yen consolidated with groupcompanies in JapanNet sales ratio of Asia businesses over 8%（Former Revenue Recognition Standard）

Shift to shared services for domestic group finance andaccounting departments (full-year)

Items in blue indicate improvements.
*Some indicators were updated on a full-year basis.

FY2/23 1Q

End-FY2/22

63.7%：36.3%

64.4%：35.6%

Operating income margin:4.6%
ROE －％

Operating income margin: 5.0%
ROE 11.7％

231 facilities

178 facilities

135 staffs

115 staffsー※Started improvement of businessprocesses in the head officedivisionsー※52.1 billion yen

9.0％

7.8％

ー※

Started support from ourfinancial and accounting
department for all domestic
group companies©2022 AEON Delight All Rights Reserved14Contents1

Financial Report for Q1 of FY2/23

2Medium-term Management Plan (FY2/22-FY2/24)
Progress against KPI

３ Initiatives for Q2 Onward to Achieve the Full-year Target©2022 AEON Delight All Rights Reserved

15Initiatives for Q2 Onward to Achieve the Full-year Target
To further improve customer success, we will propose high-demand services that
contribute to energy savings and the safety & security of customers.
Initiatives

Details
・Against the backdrop of rising energy costs at facilities, we are aggressively proposing

Proposals for energy

energy-saving services, such as LED, automatic air-conditioning control, and sales ofsavings

non-CFC cases for commercial facilities, where electricity demand is high. Contributing toreducing electricity costs and environmental impact in response to customer needs.

Proposals for safety
and security

・Propose services that ensure the safety and security of facilities for the measures ofnatural disasters that occur frequently and intensify, and to prevent incidents andaccidents.
・Increase the number of proposals for small-scale repairs, which has been declining, toProposals for smallscale repair

a level exceeding that of the first half of the previous year.
・Improve the probability of winning orders by focusing on the themes of "energy

conservation, safety and security, compliance, and hygiene" that make a high contribution
to customers.

Recovering the delay in Q1, together with the expansion of sales from outside the AEONGroup and promoting DX since the beginning of the period.
©2022 AEON Delight All Rights Reserved

15

(Reference) Target figures for FY2/23
Aim for recovering through solving issues in FY2/22(100 million yen)

FY2/22 Result(Ratio to sales)

FY2/23 Forecast(Ratio to sales)

New Revenue Recognition Standard

New Revenue Recognition Standard

2,839 （100.0%）
Net sales

Former Revenue Recognition Standard

3,176 （100.0%）

3,100 （100.0%）

Percentage change

109.2%

Former Revenue Recognition Standard

3,470 （100.0%）

109.3%

Operating income

157（5.0%）

170（5.5%）

108.3%

Ordinary income

156（4.9%）

170（5.5%）

109.0%Net income attributableto owners of parent

106（3.4%）

107（3.4%）

100.0%* “Ratio to sales” is calculated based on the former revenue recognition standard for FY2/22 and the new revenue recognition
standard for FY2/23.
* Estimated impact of COVID-19 on operating income in FY2/23
・COVID-19: -800 million yen (FY2/22: -1.2 billion yen)©2022 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 6, 12 (Operating income) are rounded down to the nearest 10 million yen.
◇ Percentages have been rounded off to one decimal place
IR Contact : President’s Office, PR・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 (July 5, 2022)
These forecasts have been prepared and are subject to change due to various factors going forward.