Financial Results
for the year ended February 28, 2009 (FY2008)
April 6, 2009

Yuiken Tsutsumi, President & CEO
AEON Delight Co., Ltd.
1

Contents
Topics§1 FY2008 in Review§２ Business Environment§３ Basic Policies and Strategies for FY2009§４ FY2009 Earnings Forecast§５ Reference2Topics

Another Record-high Earnings Reportsince Starting Anew as AEON Delight✔ Sales / profit growth for 3 consecutive years
despite difficult conditions✔ Net sales: up 5.9%; OP: up 19.4%(from previous year)✔ Both gross and OP margins increased
Gross margin: 13.7%→14.4% OP margin: 6.1%→6.8%
3§1 FY2008 in Review

4FY2008 Achievements (Growth)
Growth management• New contracts with both AEON Group & non-Groupcustomers– AEON LakeTown, large non-group commercial complexes• Oversea Development: Service started in Beijing(China)– First foothold gained, International Department established• M&As: Kankyouseibi, Do Service– Area sales reinforced, full-line service• Solutions for reduced environmental
stress
Received contracts for installation ofenergy-saving equipment

5

Achievements in FY2008 (Growth)
New projects
Intra-GroupAEON Kahoku Shopping Center

AEON Beijing International Shopping Center

AEON LakeTown

Non-Group

Shimane Asahi Rehabilitation
Program Center

Yahataya Sports Park Center

Large commercial complex
in Kansai

Large commercial complex
in Kanto

Osaka Municipal
Central Gymnasium

Osaka Int’
Int’l Ladies Marathon(security)

6

Achievements in FY2008 (Quality)
Quality management• Experiment of “Cleaning as a Core Business”– In-store experiments on operating procedures, improving
the way we work, and productivity enhancement were all
effective.

• Integrated ISO environment and quality manuals– Maintenance services achieving both environmental
preservation and higher quality• Continued drive for 5S– Compiled know-how, andshared know-how nationwide for higher service quality
7

Consolidated Statement of Income (Summary)Millions of yen

FY2008Amount% to net
sales

FY2007

YoY change%
AmountAmount% to netsales

Net sales

145,690

100.0

105.9

8,171

137,519

100.0

COGS

124,735

85.6

105.1

6,043

118,692

86.3

Gross profit
on sales

20,955

14.4

111.3

2,128

18,827

13.7

SG&A

11,008

7.6

104.9

512

10,496

7.6

9,946

6.8

119.4

1,615

8,330

6.1

9,812

6.7

119.9

1,626

8.186

6.0

4,876

3.3

111.3

496

4,379

OperatingincomeOrdinary
incomeNet income

3.2
8Segment Sales◇ Well-balanced growth among the four segments
FY2008FY2007

FY2007

Millions of yen

Others 2.6%

YoY change%
AmountConstruction
12.2%

Facility
management (FM)42,25340,202

105.1

2,051

Preservation of
security (PS)36,67035,848102.3

821

Cleaning

42,40341,098

103.2

1,304

Cleaning
29.9%

FM
29.2%

PS
26.1%

FY2008Others 4.0%

Construction

18,515

16,777

Others

5,846

3,591

162.8

2,255

145,690

137,519

105.9

8,171

Total

110.4

1,738

Construction
12.7%

Cleaning
29.1%

FM
29.0%

PS
25.2%

◇ “Others” represents the aggregate of other building-maintenance-related businesses and otheroperating revenue.

9

Consolidated Balance Sheets (Summary)Millions of yen
FY2008FY2007

FY2008Difference

FY2007

Difference

Current
assets30,15028,764

1,386

Current
liabilities

20,131

22,533-2,402

Fixed
assets

18,88518,653231

Long-term
liabilities

824

2,395

-1,571

Tangible
fixed assets

2,602

1,885

717

Total
liabilities

20,95624,929-3,973

Intangible
fixed assets

12,623

13,356-732

Investments
and otherassets3,658

Total net
assets

28,07922,488

5,591

Total
liabilities
and netassets49,03547,418

1,617

Total
assets49,0353,411

47,418

246

1,617

10

Statement of Cash Flows
Millions of yen
FY2008FY2007

Cash flows from operating activities

6,668

6,472

Cash flows from investing activities-2,087-2,190Cash flows from financing activities-5,255-6,094

Net increase (decrease) in cash and cash equivalents-687-1,811

Cash and cash equivalents at beginning of period

7,657

9,469

Cash and cash equivalents at end of period

6,970

7,657

Operating activities
Net income before
income taxes
Depreciation andgoodwill amortization
Income tax payment

Financing activities

Investing activities+¥8.98 bn. Acquisition of cleaning -¥0.42 bn.
materials / equipment+¥1.49 bn. and software
Increase in deposits for -¥1.0 bn.
-¥4.53 bn. consumption

Return of funds forliquidation ofreceivables
Dividend payment-¥4.5 bn.

-¥0.79 bn.

11

Key Management Indicators
FY2005EPS
ROE
ROA
Ratio of ordinary income
to net sales
Ratio of net income to
net sales
Total assets turnover
Shareholders’ equity
ratio
Net assets per share
PER
PBR(Reference) Share price at
end of period

FY2006

FY2007

FY2008¥64.268.29%
4.78%¥151.1716.85%
7.62%¥110.39*
21.03%
9.17%¥122.92
19.89%
10.11%

4.74%

4.93%

5.95%

6.74%

2.11%

2.70%

3.18%

3.35%

2.26

2.83

2.88

3.02

53.69%

39.87%

47.43%

54.15%¥825.2820.66
1.60¥966.41
20.51
3.21¥566.87*
19.79
3.85

¥669.28
10.29
1.89¥1,328¥3,100¥2,185¥1,266

The figures with * show amounts after stock split.

12§２ Business Environment

131) Changes in Business Environments
Abroad and domestic business environments● Overseas
Overseas:: Worldwide recession stemming from financial turmoil,
dramatic changes in the economic environment● Japan-WWII-record-highJapan:: Collapsed corporate earnings, post
post-WWII-record-highbankruptcies of public companies
Weak employment, postponed capex, restrained spending
Consumers growing defensive due to uncertainty over the economyeconomyConsumer Confidence Index (March 2008 – February 2009)
38
36
34
32
30
28
26
24
Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

The Development of the Consumer Confidence Index(all households, original series), Cabinet
14 Office2) Building Maintenance Business Environment
Property and building maintenance markets● Property: Office vacancy rates rising due to business downsizing, etc.
New construction postponed or abandoned (first failure of JJ-REITs)-REITs)Rents / common service fees declining due to supply / demanddemandbalance
Vacancy Rates and Rents of Office Buildings (March 2008 - February 2009)

Yen
23,000%6

Ave. rents (yen/tsubo)
Ave. vacancy rates (%)

5

22,5004
22,0003
21,5002
21,0001

20,500

0
Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Office Data in Tokyo Business Areas, Miki Shoji Co., Ltd.

15

§３ Basic Policies and Strategies for FY200916

Basic Policies for FY2009
This crisis provides an opportunity for growth via new strategies.
- Expanding business opportunities
Greater cost consciousness will create opportunities for oursolutions.

- Build up competitive corporate resilience
Reduce ratio / amount of costs, discover / develop
future management staff- Organizational reform implemented (March 1)
Strengthen sales expertise, promote operational improvement,
streamline HQ- Significant deterioration of the real economy- Deceleration of new large openings for the
AEON Group

Difficult conditions area “blessing in disguise” forreforming staff
consciousness.
Break away from fixed notions
to establish a new setup
171) Growth Management (1)Increase efforts to expand marketing“The Beginning of a New Stage”
Realignment of Sales
Organizations
For Non-GroupFor AEON Group-- Manage
Manage Sales
Sales Dep't
Dep't
acrosstheacross the nation
nation-- Bulk
Bulk contracts
contracts via
via
networks
networks andand collective
collective
strength
strength-- Offer
Offer solutions
solutions totoincreasingly
increasingly costcostconscious
conscious companies
companies

From individual management to total
management
From individual contracts to blanket
orders-- ThoroughThorough pursuit
pursuit ofof
intra-Group
intra-Group synergies
synergies-- Offer
Offer solutions
solutions contributing
contributing
toto thethe AEON
AEON Manifesto
Manifesto ononthethe Prevention
Prevention ofof Global
GlobalWarmingWarming-- Secure
Secure contracts
contracts forfor new
newstoresstores-- Solutions
Solutions mademade fromfrom thethecustomer’s
customer’s viewpoint
viewpoint

Addressing the emerging demand forsafety, eco-friendliness, etc.

Group Sales Division

Sales Division

Sales Division and Group Sales Division established March 1

181) Growth Management (2)Accelerated progress of overseas operations

Overseas business step
-up policies
step-up● Increase capacity in China for contracts involving more than one store● Tap into AEON Beijing International’s track record to expand to third
International’s
third-party businesses● Promote Asian strategies (other cities in China, SEA, etc.)● International Department established
to lead future overseas strategies(Jan. 1)
● Study commenced on businessexpansion to Qingdao and South China
Beijing

19

AEON Beijing International Co., Ltd.

1) Growth Management (3)Further promote M&A strategies

Increase earnings and enhancefunctions through M&As

①北海道エリア● Compete aggressively with like-mindedlike-minded
partners● Programs optimized for our businesssegments / regional strategies● Compensate for lacking functions by way of
M&As
New
New partners
partners to
to be
be mademadewholly-owned subsidiaries
whollywholly-owned
subsidiaries

Chugoku / Shikoku Area
⑤中国・四国⑤中国・四国エリア
エリア●● Kankyouseibi:
Kankyouseibi: June
June 2009
2009
●
● Do
Do Service:
Service: Sept.
Sept. 20092009

⑥九州エリア⑥九州エリアKyushu Area

Hokkaido
Area②関東・東北エリア②北関東・東北エリア
Kanto / Tohoku Area

Chubu Area
③中部エリア'08/10/01
環境整備㈱
グループ化

Oct. 1, ‘08
Kankyouseibi Co., Ltd.
joins the GroupKinki Area
④近畿エリア'09/04/01㈱ドゥ サービス
グループ化
Apr. 1, ’09
20
Do Service Co., Ltd. joins the Group1) Growth Management (4)Accelerate the drive to reduce environmental impact

Initiatives for reducing environmental impact● Build a business model for reducing environmental impact● Apply intra-Group know
-how to solutions for third-partyintra-Groupknow-how
third-party
customers● Establishment of renovation department to utilize our innovative
solutions
Preventing cool air from leaking
out during the night

Low power
consumption lighting

Cooling casenight shutter

LED lighting

Control power consumption using heatof vaporization
Equipment life extended

Outdoor equipment
sprinkler system 212) Quality Management (1)Re-engineer earnings structure● Apply the results of the experiments of““Cleaning
Cleaning as a Core BusinessBusiness”” to all branch offices
Promote the “Cleaning as a Core Business Project”
under the lead of branch managers○ Deploy the project nationwide by the end of 1H○ Share acquired know-how on “changing the way wework” and “productivity enhancement” with suppliers and
AEON Delight Group companies

Profitability improvement hoped for in mid-2009 or thereafter222) Quality Management (2)Efforts for innovation and industrialization of maintenance¾¾¾¾

Develop core personnel with a holistic view andmanagers for the next generation
Analyze / study work efficiency using industrial
engineering (IE)
Collaborate with advanced businesses and government
offices for technological innovation
Develop human resources such as engineers andresearchers

At “AEON Delight Academy Nagahama” (due to open this year), we will
study service science for industrialization of the maintenance business.
23●Change corporate culture by introducing man-hour
productivity indicators

Introduce “man-hour
productivity indicators”
at each center
Hourly gross margin
per capita

Establish a PDCA cycle-- ShareShare thethe man-hour
man-hour productivity
productivity indicators
indicators withwitheveryoneeveryone-- Advance
Advance management
management based
based onon these
these indicators.
indicators.
-- Identify
Identify problems
problems andand issues
issues →→ Improve
Improve thethe wayway
we
we workwork

Think and change by ourselves to become a groupof companies whose staff possess a proactive spirit

Improve work efficiency and profitability

First step toward industrializationof the building maintenance service2) Quality Management (3)Introduce man-hour productivity indicators

24§４ FY2009 Earnings Forecast

25

FY2009 Earnings Forecast

Millions of yen

FY2008 Results

FY2009 Forecast
AmountNet sales
OperatingincomeOrdinary
incomeNet income% to netsales

YoY change(%)

Amount

% to
net
sales

150,000

100.0

103.0

145,690

100.0

10,100

6.7

101.5

9,946

6.8

9,900

6.6

100.9

9,812

6.7

5,200

3.5

106.6

4,876

3.3
26

Return to Shareholders

Reward shareholders in light of growth
FY2005

FY2006

FY2007

FY2008

¥9.0

¥15.0

¥17.5

¥22.0

FY2009¥24.0

Dividends paid

(provisional)

Dividends expected to shoot up
to 2.7 times those in FY2005
30
25
20
15
10
5
0

Yen

FY2005

FY2006

FY2007

FY2008FY2009(forecast)* As of December 1, 2007, AEON Delight executed a two-for-one stock split.
The above dividends are calculated on the assumption that such a stock split was executed at the beginning
27 of
FY2005.

Moving on to the Next Growth Stage
2020 Project kicked off!
In FY2009, we will fully prepare ourselves for the next growth stage.
Visions

Deep understanding ofenvironmental changes
Reorganization ofbusiness domains
Global viewpoints
Industrialization ofbuilding maintenanceOur goal for 2020

“Aspirations /Visions”
Enhance corporate
value

Pursue the creation of “environmental value”

28§５ Reference

29

Delight Way – Managing Principles / Visions -At AEON Delight, we pursue the creation of“environmental value” for our customers.

Delight
SafetyComfortHuman environment

We will continue to be a pioneer in creating “environmental
value” that perpetually promotes an improvement of safety
and comfort.

30

The AEON Delight Group
With the joining of Kankyouseibi and Do Service, the AEON Delight
Group now comprises 8 domestic companies and 1 overseas
company.
Expert in financial facilities management
Expert in training the next generation of engineers
AEON Delight Seres Co., Ltd.

AEON Delight Academy Co., Ltd.

Expert in back-office support

Expert in security services for commercial complexes

AEON Delight Security Co., Ltd.

AEON Delight Towers Co., Ltd.
Expert in community-based building
maintenance services

An Asian HQ for our overseas strategies

Kankyouseibi Co., Ltd.
AEON Delight Co., Ltd.

AEON BeijingInternational Co., Ltd.

Professionals in the creation of a clean environment

Do Service Co., Ltd.
Professional in maintenance of small commercial
complexes

A to Z Service Co., Ltd.
31

(Reference) Profit and Loss Analysis
Millions of yen

1. Five-year summary (graphs)
160000

5500

12000

5000

14000010000
4500

120000
4000

8000
100000

3500
6000
3000

80000

2500

4000

60000

2000
40000

2000

20000

0

1500

05年度 FY2006
06年度
FY200507年度
FY200708年度
FY200809年度
FY20091000

FY200505年度

FY200606年度

FY200707年度

FY200808年度

FY200909年度

05年度
FY2005

2. Five-year summary (numbers)

Net sales
OperatingincomeOrdinary
incomeNet income

08年度
FY200809年度
FY2009Millions of yen

Results% to net
sales

Results% to net
sales

62,323100.0

111,170

100.0

2,949

4.7

5,576

2,953

4.7

1,324

2.1

FY2009 (forecast)

FY2008FY2007

FY2006

FY200507年度
FY2007

Net income

Operating income

Net sales

06年度
FY2006% to net
sales

Results% to net
sales

Forecast% to net
sales

137,519100.0

145,690100.0

150,000

100.0

5.0

8,330

6.1

9,946

6.8

10,100

6.7

5,485

4.9

8,186

6.0

9,812

6.7

9,900

6.6

2,998

2.7

4,379

3.2

4,875

3.3

5,200

Results

3.5

32

(Reference) Employees

1. Number of employees
FY2003

FY2004

FY2005

FY2007

FY2006

FY2008

Male
RegularFemaleemployees
Total

1,898
100

2,306
157

2,396
184

3,810
367

4,013
378

4,642
564

1,998

2,463

2,580

4,177

4,391

5,206

ContractMale
employees, Female
Contract
employees
Total
for special
dutiesPart-time workers

887
176

745
131

606
132

1,094
133

1,379
136

1,248
107

1,063

876

738

1,227

1,515

1,355

3,332

2,499

2,444

2,834

2,652

3,333

6,393

5,838

5,762

8,238

8,558

9,894

Total

2. Average age
FY2003
Average age

43.1

FY200441.8

FY200544.1

FY2006

FY200745.2

FY2008

46.9

47.1◇ The above data are current as of February 28, 2009. Numbers for part-time workers are calculated by dividing totalmonthly working hours by 172 hours.
The total number of employees is 11,348: 6,561 regular / contract / specialized-duty contract employees and 4,787 part33
time workers.

(Reference) Shareholders / Stock Price
2. Shareholders by type

1. Major shareholders (top 10)
Ratio to the total number of shares outstanding

Place
1 MYCAL Corp.
2 Treasury stock
3 State Street Bank and Trust Company
4 Japan Trustee Services Bank, Ltd.
5 The Chase Manhattan Bank N.A. London SL Omnibus Account
6 Japan Trustee Services Bank, Ltd.
7 The Master Trust Bank of Japan, Ltd.
8 AEON Co., Ltd.
9 AEON Delight Employee Stock Ownership Association
10 Mellon Bank NA as Agent for its Client Mellon Omnibus US Pension

Self-owned

Securities firms%*
No. of shares owned
4.2%
0.6%
23,261,800 56.2%
Financial
1,729,647 4.2%
institutions
1,367,292 3.3%
9.7%
1,345,600 3.3% Individuals
and others
Other
780,700 1.9%
8.5%
Japanese
Foreigncorporations
743,300 1.8%
corporations
59.4%
621,700 1.5%
17.6%
560,800 1.4%
551,700 1.3%
426,579 1.0%

3. Stock price (September 1, 2006 – February 28, 2009)
Yen

Shares500,000

3,000

400,000

2,500

300,000

100,000
0¥2,785/share(Oct. 20, ‘08)Low

¥1,025/share(Nov. 21, ’06)

2,000
1,500

200,000

High

1,000
500
0

◇The above data is current as of February 28, 2009. Prices on and before November 30, 2007, have been converted to thoseafter the stock split.

Largest 460,700 sharesvolume(Feb. 9, ’09)

34

Disclaimer, etc.
■ This material contains certain statements describing thefuture plans, strategies, and performance of AEON Delight.
◇ These statements are not based solely on historical facts,
but rather on assumptions and estimates based on currently
available information. Because of this, AEON Delight’s
actual performance may differ materially from theassumptions and estimates supplied.
■ Unless otherwise stated, the following applies to data
supplied.
◇ All numbers are on a consolidated basis.
◇ Any fraction below one million yen is disregarded.
◇ Percentages are rounded to one decimal place.
35

Thank you very much for your kind attention.
Comments and inquiries should be directed to the following:

AEON Delight Co., Ltd.
(Stock code: 9787)
IR Contact

Masatoshi Sashie
Delight Communication Department
TEL +81-6-6260-5632
FAX +81-6-6260-5653
Or visit our website at:
http://www.aeondelight.co.jp* When sending a fax, please include your name and contact details.
This presentation has been prepared using the information available as of the date of the presentation (April 6, 2009).
The earnings forecasts contained herein may be revised due to unforeseen factors that may arise in the future.

36