Supplementary Information on the Financial Results
for the Nine Months Ended November 30, 2019

AEON DELIGHT CO., LTD.
January 10, 2020

Consolidated Statement of Income(100 million yen)

FY2/193Q (Ratio to sales)

Net sales

FY2/203Q (Ratio to sales)

DifferenceYear-on-year

2,267 （100.0%） 2,326 （100.0%）58

102.6%

Gross profit

258 （11.4%）

290 （12.5%）

31112.3%

SG&A expenses

169（7.5%）

169（7.3%）▲0

99.9%

Operating income

89（3.9%）

121（5.2%）

31

135.8%

Ordinary income

93（4.1%）

121（5.2%）

28

131.0%Net income attributableto owners of parent

38（1.7%）

73（3.2%）

34

189.3%©2020 AEON Delight All Rights Reserved 2

[Reference] Income Statement excluding KAJITAKU (Same Scale Comparison)
Net sales increased due to the expansion of new customers and thegrowth of overseas subsidiaries.
(100 million yen)

[Reference]

FY2/193Q (Ratio to sales)

FY2/203Q (Ratio to sales)

Net sales

2,231 （100.0%）

Gross profit

DifferenceYear-on-year

2,289 （100.0%）57

102.6%

288 （12.9%）

293 （12.8%）

4

101.6%

SG&A expenses

161（7.2%）

163（7.1%）

1

100.9%

Operating income

127（5.7%）

130（5.7%）

3

102.5%*For more details of recurrence prevention measures:"Measures to Prevent Recurrence of Inappropriate Accounting at Our Consolidated Subsidiary KAJITAKU CO., Ltd.“at July. 22, 2019©2020 AEON Delight All Rights Reserved 3

Progress of Recurrence Prevention Measures for Inappropriate Accounting by KAJITAKU

In response to the recommendations from the Special Investigation Committee,
we began implementing the preventive measures thoroughly in accordance withthe schedule to ensure prevention of recurrence.
[Measures already implemented or in progress]
Recurrence Prevention Measures by KAJITAKU●Renewal and reinforcement of management, compliance training for all management andemployees, building systems to foster a sound corporate culture (selection of compliancecommittee members with other subsidiaries, establishing a whistle-blowing system) ,clear statement of work flows, etc.

Recurrence Prevention Measures by the Company●Enhancement of subsidiary management system (management of subsidiaries including
providing support for development of compliance, audits, internal controls, legal systems andgrowth strategies), review of board of directors meetings of each subsidiary, preparation for thelaunch of a shared finance & accounting division, etc.
*For details on recurrence prevention measures, please see the “Measures to Prevent Recurrence of Inappropriate Accounting at
Our Consolidated Subsidiary KAJITAKU CO., Ltd.” dated July 22, 2019.
*For the schedule for the implementation of preventive measures, please see the “Supplementary Information on the Financial
Results for the Six Months Ended August 31, 2019.” dated Oct.9,2019.
©2020 AEON Delight All Rights Reserved 4

Future Direction of KAJITAKU
Spin off the housework support business (incorporation-type split)
and transferr it to a new company.

● Store Support BusinessTemporarily stop selling and placing new equipment, and focus on
improving existing contracts● Housekeeping Support Business
The market is expected to expand in the future.
In the newly established companies, establishing Core Competencies byconcentrating management resources.

Moving to the next growth stage
as a housekeeping support company©2020 AEON Delight All Rights Reserved 5

FY2/20 Business Forecasts

FY2/20 Forecasts(Ratio to sales)(100 million yen)

FY2/19 Results(Ratio to sales)

Net sales

3,029 （100.0%） 3,150 （100.0%）

Percentage change

104.0%

Operating income

130（4.3%）

180（5.7%）

138.1%

Ordinary income

133（4.4%）

180（5.7%）

134.7%Net income attributableto owners of parent

64（2.1%）

108（3.4%）

168.4%©2020 AEON Delight All Rights Reserved 6

Scenario for achieving operating income budget
Aim to achieve the operating income budget
with growth of the parent company and domestic and overseas subsidiaries
Accumulated
operatingincome¥1.5 bn(100 million yen)

200

Operating income
excluding KAJITAKU¥17 bnOperatingincome budget¥18 bn160
KAJITAKU
Expected operating loss
¥500 mn

Operating income¥13 bn120

Effect of KAJITAKU¥4 bn(*)
Based on the “Major Initiatives
by Area” on the next page,
Aim to achieve operating income
budget.

8040

0FY2/19FY2/20*Provisions are posted for future losses on past transactions of KAJITAKU.
©2020 AEON Delight All Rights Reserved

7

FY2/20 Major Initiatives by Area
Maintained favorable trend and steadily expanded FM business inJapan, China, and ASEAN

Japan● Regional management led by branch offices to help resolve the 3society issues of “Safety," “Labor shortage,“ and “Environment“.

China● Accelerate business expansion through "One Aeon Delight Strategy"

ASEAN● Expand of business in Indonesia through SJS, which was acquired in theprevious fiscal year

©2020 AEON Delight All Rights Reserved

8

Major initiatives for the Nine months
1

Safety● In response to natural disasters such as typhoons No. 15 and No. 19, support activities were conducted incooperation with Aeon Group companies.
● Aeon Delight Security offered Transportation Security Services during the Rugby World Cup 2019 Japan
Tournament (Oita and Shizuoka Prefecture)● Aiming to become a group of experts in facility management, the “1st AEON delight Skill Contest ” was held.

2

Labor shortage● Introduced integrated facility management services using open network system to Aeon
Fujiidera SC in order to build AD Platform● Started a new project with SECOM CO., LTD to strengthen non-onsite management toexpand service provision to small and medium-sized offices

3

Environment● Demonstration of renewable energy power supply utilizing blockchain technology started in

October toward the establishment of energy management services.
©2020 AEON Delight All Rights Reserved

9Safety: 1st Aeon Delight Technology Competition
To become the group of facility management experts
Held technical contests by business type (Facilities Management, Security, and Cleaning)[Contest photos](Photo from the left) November 7 @Tokyo Big Sight 5th Work-friendly Activity Presentation Meeting (Cleaning)
November 11 @Aeon Delight Academy Nagahama "1st Technology and Safety Improvement Contest" (Facilities Management)
December 9 @Tokyo Big Sight "Enhancing Job Satisfaction Project ~ "Thanks" for Growth!" (Security)

Approximately 250 people from domestic and overseas group companies and cooperating companies(security) participated in the event.
We competed by presenting each other's technology efforts, achievements, and sharing good examples.

Technological capabilities × Human resources = Specialists©2020 AEON Delight All Rights Reserved

10Labor Shortages: Started Provision of Integrated Facility Management Services Using Open Systems

Achieved energy saving of facilities, reduction of operation costs,
and labor saving of FM operations
Development and launch of new services as the foundation of AD platform[Integrated facility
management services]■ Networking/Integrated control offacilities through an open system■ Remote operations with mobile
devices and wearable cameras■ Use IoT garbage box,
automated-driving cleaning
robots● Controlling all kinds of facilities anywhere with mobile terminals
Realized a Moving Disaster Prevention Center©2020 AEON Delight All Rights Reserved 11

Labor Shortages: Strengthening non-on-site management
Promote initiatives to eliminate labor shortages in collaboration with Secom Co., Ltd.
Expanding service provision to small and medium-sized offices by strengthening nonon-site management

Collaboration began in April 2018. Building a labor-saving model for security
services in FY2/19.
Continue to verify further labor saving in facility management operations

Strengthen nonresident management with using strengths of both companies (SECOM:
Security, Aeon Delight: Facility Management) and expand services to small and mediumsized offices. Promoted this project in the Kanto region.
©2020 AEON Delight All Rights Reserved 12

Environment:
Won the “Award from the Chairman of the Energy Conservation Center” at the 2019 Energy Saving Grand Prize

Evaluated for its 30% reduction in electricity consumption over 4 years
achieved with LED-lighting *2 and air-conditioning systems in large commercial facilities

unimo Chiharadai Shopping Center[Company Initiatives]

Under the Customer
Sustainability Guidelines, we
proposed and introduced an
air-conditioning control system.
High energy-saving effects

Promote introduction toother properties *3*1 We jointly won the award for "Reducing Power Consumption of Air-Conditioning and Lighting Utilizing Radio Communication in
Shopping Centers" in cooperation with LaSalle Real Estate Investment Advisors Co., Ltd. and JLL Mall Management Co., Ltd.
*2 Introduce 2 LED lighting by other companies* 3 Introducing at Aeon Mall stores sequentially and achieved energy savings©2020 AEON Delight All Rights Reserved

13

Acceleration of Global Expansion① China: Expand from points to plane focusing on FM management contracts

Expand facility management from points (properties) to plane (cities)
Suzhou urban development strategy“1 core, 4 districts”

May 2016 Xiangcheng
District
GaotieXincheng

Established a JV company with local top class real estate
investment & development company.
Participated in Gaotie Xincheng Project, spanning 28 square
kilometers in northern Suzhou

Historical

Huqiu
District& culturalpreservation
districts

Wuzhong
District

Redevelopment area

Gusu
District

Focused on FM management contracts for properties
within the area, contributing to business results

2020 Based on the above know-hows, we will explore
participation in new urban development projects

Aeon store location

Promote FM on a city basis (rather than by property) to form a regional
economic zone including Aeon stores©2020 AEON Delight All Rights Reserved 14

Growth of Overseas Subsidiaries ② ASEAN: Expand business in Indonesia

Expand business in Indonesia, ASEAN's largest market

Converted the business of PT Sinar Jernih
Sarana from cleaning business to FM
business through comprehensive facility
management at local Aeon malls

Made contract with the 2nd local Aeon
Mall store from October 2019

Started offering comprehensive facility
management services, including facility
management and security services©2020 AEON Delight All Rights Reserved 15

Business expansion in Asia
Double-digit growth in both sales and operating income in the Overseas Business (*)
Overseas Business: Sales and Operating Income (100 million yen)

China

Net sales

Malaysia

Vietnam150

Indonesia

Operating income

Operatingincome
15

139
109

11

100

10

7

50

5

0

0
Net sales

Operating income
FY2/19 3Q* Figures are simple totals of results of operating companies.

Net sales

Operating income
FY2/20 3Q©2020 AEON Delight All Rights Reserved 16

Sales by Segment
Sales increased in 5 businesses.
Cleaning services: Indonesia's SJS acquired in the previous fiscal year contributed to the growth.
FY2/19 3Q

FY2/20 3Q

Year-on-year

Facilities management

425

442

104.0%

Security services

332

333

100.1%

Cleaning services

430

465

108.0%

309

320

103.4%

Materials/supplies
sourcing services

387

385

99.4%

Vending machineservices

240

237

99.0%

Support services

140

142

101.2%(Reference)
Excluding KAJITAKU

104

105

100.1%

Total

2,267

2,326

102.6%(Reference)
Excluding KAJITAKU

2,231

2,289

102.6%

Construction work(100 million yen)©2020 AEON Delight All Rights Reserved 17

Profit by Segment
Increased profits in ３ businesses. Increased sales contributed to increased profit in cleaning services.
Security services improved profitability. Vending machines services completed changeover of revenue model.
Decreased profit in facilities management due to higher purchasing costs. Promoted fundamental reform of work process(Refer to Page 11).
Decreased profit in construction work affected by projects related to recovery from natural disasters that occurred in the 1 st
half and inadequate performance by subsidiaries.
(100 million yen)

FY2/19 3Q

FY2/20 3Q

Year-on-year

Facilities management

42.5

40.3

95.0%

Security services

21.1

22.0

104.2%

Cleaning services

50.0

52.9

105.8%

Construction work

28.8

28.4

98.7%

Materials/supplies
sourcing services

21.3

19.4

91.1%

Vending machineservices

7.6

9.4

124.0%

Support services

▲23.3

4.4

-

(Reference)
Excluding KAJITAKU

14.7

13.8

93.4%

Total

148.1

177.1

119.6%(Reference)
Excluding KAJITAKU

186.3

186.5

100.1%©2020 AEON Delight All Rights Reserved

18Initiatives by Segment
Facilities
management

In addition to new contracts, we expanded contracts for renovation and repair of elevators andescalators that are deteriorating over time.
In addition, we will continue to focus on supporting our customers in developing disaster prevention
and mitigation systems during emergencies.

Security services

Amid a growing sense of tightening labor supply and demand, we are striving to optimize unit prices
and improve profitability through price negotiations, and at the same time promoting the systemizationof entrance/exit management and operations for closing stores.

Cleaning services

In addition to new orders, results from Indonesian cleaning company SJS, which became aconsolidated subsidiary in the previous fiscal year, contributed to the growth.
In addition, we are promoting the introduction of automated driving cleaning robots to save labor.

Construction work

In addition to increase orders by strengthening the system in the design field in the previous
fiscal year, we expanded the number of orders for renovation work by building a system forproviding services closely linked to local communities.

Materials/supplies
sourcing services

Expanded contracts for packaging materials of Aeon PB products "TOPVALU." Focused on
reducing logistics cost to improve profitability.

Vending machineservices

Focused on increasing the installation of our own vending machines with each beverage
manufacturer's products. The useful lives of the machines are reviewed after comprehensively
taking into account the actual replacement period and the physical life of the machine.

Support services

Expanded the provision of outsourcing services related to the management and operation offacilities and their surroundings, including business by consolidated subsidiaries©2020 AEON Delight All Rights Reserved

19Consolidated Balance Sheet(100 million yen)

AssetsFY2/19FY2/203Q

Difference

Current assets

1,072

1,087

14

Tangible fixed
assets

101

97

▲4

Intangible
fixed assets

81

74

▲6

Investments,
etc.

85

83

▲1

Fixed assets

267

255

▲12

Total assets

1,340

1,342

1

FY2/19FY2/203Q

Difference

Current
liabilities

514

478

▲35

Fixed
liabilities

71

67

▲3

585

546

▲39

Shareholder’sequity

727

769

42

Total net assets

755

796

41

Total liabilities
and net assets

1,340

1,342

1

Liabilities andnet assets

Total
liabilities©2020 AEON Delight All Rights Reserved 20

Shareholder Return

Dividends have increased for 14 consecutive years since FY2/06.
15 Consecutive Years of Dividend Increase

For FY2/19, we increased the dividendby 2 yen from the previous fiscal year, to63 yenFor FY2/20, based on the assumption that the performance
forecasts will be achieved,
Plan to pay dividends of

65 yen,up 2 yen from FY2/19 with consolidated dividend payout ratio of 30% (*)* Net income attributable to owners of parent: 10.8 billion yen©2020 AEON Delight All Rights Reserved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
◇ Percentages have been rounded off to one decimal place

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

IR Contact : Emiko Ishii
Delight Communication Department
TEL 03-6840-5712
Please contact us on our website.
https://www.aeondelight.co.jp

Based on information available up to the date of publication (January 10, 2020)
These forecasts have been prepared and are subject to change due to various factors going forward.