Financial Results
for the First Half of the Year Ending
February 28, 2011 (FY02/2011)
October 7, 2010
Yuiken Tsutsumi, President & CEO
AEON DELIGHT CO., LTD.

1

Contents§1 Overview of Financial Results for the First
Half of FY02/2011§2 Initiatives for the Second Half of FY02/2011§3 FY02/2011 Earnings Forecast§4 Reference2§1 Overview of Financial Results for the First
Half of FY02/20113

Performance Highlights for First Half of FY02/2011
Record highs were set for ordinary income and net income in thefirst half of FY02/2011.
Millions of yen

First six months ended August 31, 2010
Forecast at beginningof period

4

Results% to netsales

YoY
Change (%)% toForecast

Net sales

73,00068,885

100.0

94.3

94.5

Operating income

5,000

5,021

7.3

100.4

102.9

Ordinary income

5,000

5,053

7.3

101.0

104.0

Net income

2,600

2,770

4.0

106.5

106.9

Segment Sales
Millions of yen

1H FY02/2011

YoY
Change (%)

1H FY02/2010

1H FY02/2011
Others 3.7%

Facility management(FM)20,66921,227

97.4

Construction
11.8%

FM
30.0%

Security

16,225

Security

17,328

93.6

23.6%

Cleaning
30.9%

Cleaning

21,26023,071

92.2

Construction

8,136

8,585

94.8

Others

2,593

2,640

98.1

68,88572,856

94.5

Total

◇ “Others” represents the aggregate of other building maintenance-related businesses andother operating revenue.
5

Signs of Changing Trends by Segment
Non-consolidated AEON DELIGHT cleaning sales(FY02/2010 to first half of FY02/2011)

Millions of yen

FY20103400

FY2011Showing signsof bottoming out
in the first halfof FY02/2011
2800

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Non-consolidated AEON DELIGHT construction work
sales (FY02/2010 to first half of FY02/2011)

Jan.

Feb.

Millions of yen

2400

FY2010FY2011

0

Mar.

6

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Outperforming
results lastyear from Junefor 3 months
straight

(Summary) Statements of Income for First Half of FY02/2011
Millions of yen
1H FY02/2011

1H FY02/2010% to netsales

AmountAmountYoY
Differencechange (%)% to netsales

Net sales

68,885

100.0

94.5

-3,971

72,856

100.0

COGS

58,291

84.6

93.7-3,89762,18885.4

Gross profit on sales

10,593

15.4

99.3

-74

10,667

14.6

SG&A

5,572

8.1

96.3

-213

5,785

7.9

Operating income

5,021

7.3

102.9

139

4,882

6.7

Ordinary income

5,053

7.3

104.0

197

4,856

6.7

Net income

2,770

4.0

106.9

179

2,591

3.6

7

Consolidated Balance Sheet, Consolidated Statement of Cash Flows (Summary)
Consolidated Balance Sheet

Millions of yen

As of Aug. 31, ‘10 As of Feb. 28, ‘10

Difference

As of Aug. 31, ‘10 As of Feb. 28, ‘10

Difference

Current assets

３２,４８８３０,０２６２,４６２

Current liabilities

１６,３４９

１６,２８１

６８

Fixed assets

１８,３６４

１８,６４４-２８０

Long-term liabilities

８３７

１,０２４

-１８７

Total liabilities

１７,１８６

１７,３０６-１１９Tangibles

２,７０５

２,７４１

-３６

Intangibles

１１,５２３

１１,９２４-４０１

Investments, etc.

４,１３５

３,９７７

１５８

Total net assets

３３,６６６

３１,３６４

２,３０１

２,１８２

Total liabilities and net
assets５０,８５２４８.６７０２,１８２

Total assets

５０,８５２

４８,６７０Operating cash flows

Consolidated Statement of Cash Flows8

Millions of yen

1H
FY02/2011

1H
FY02/2010

Cash flows from operating activities

２,０７６

２,２７５

Cash flows from investing activities-２,４７９８１

Cash flows from financing activities-６３７-３,７０８Net increase (decrease) in cash and cash equivalents-１,０３８-１,３４８Cash and cash equivalents at beginning of period

７,８７３

６,９７０

Cash and cash equivalents at end of period

６,８３５

５,６２１

Net income before taxes
Notes and accounts receivabletrade-¥ 1.41 bn.

Income taxes paid-¥ 2.08 bn.

¥ 4.88 bn.

Investing cash flows
Decrease in time deposits-¥ 0.42 bn.

Net deposits and repayments fordeposit of subsidiaries and affiliates-¥ 1.82 bn

Financing cash flows
Cash dividends paid-¥ 0.59 bn.

Performance of New Businesses for First Half of FY02/2011
The Company provides a wide variety of customers with services at facilities for various
purposes through a strengthened sales structure and active promotion.

Intex Osaka (international exhibition hall facilities)

Narita Airport Terminal 2

Henkel Japan Asia Pacific Technology Center

Aichi Prefectural Government Building

9

Initiatives for First Half of FY02/2011
Promote proposal activities by actively listening to the views of customers▶Promoting proposal activities fromthe customer’s point of view

Over 48,000 proposals made
(136% compared to second half of previous
fiscal year)

Initiatives for CO2 reductions▶Increase sales of Ad-TEMS* in
response to revision of the Energy
Conservation Law

Acquired customers at 11 companies and
1,133 offices since May
Aiming for 7,000 customers in the second
half of FY02/2011*Ad-TEMS (AEON DELIGHT Total Energy Management Service)
Service that provides uniform management of the amount of energy used by the entire business overall
and preparation of regular reports.

Initiatives for expanding business overseas▶Commenced business in Southern China
May: Commence business at JUSCO Chao Bei Joy City Store (Beijing)
July: Commence business at AEON Shunde Shopping Center (Guangdong)
New challenge of introducing service level agreements for cleaning methods
10Initiatives for First Half of FY02/2011
Initiatives for innovating business models for core businesses
Cleaning services▶Horizontal integration of the AEON
DELIGHT cleaning services model

Number of locations introduced(FY10) 61 locations→ (cumulative FY11) 133 locations

Facility management▶Improved productivity by thoroughness with work
schedule management▶Install GPS devices in patrol cars, make routes
more efficient

Gross profit margin for patrol
centers
5.8% improvement year-on-year

Initiatives for promoting personnel education
Opened in March

AEON DELIGHT Academy Nagahama
・Management training aimed at education for the
next generation of executives
・Government and academia collaboration forresearch on next-generation technology(March to August 2010) Over5,000 total training participants

11§2 Initiatives for the Second Half of FY02/201112

Business Integration

Comprehensive FMS market

Heading towards a new stage with the establishment of theComprehensive FMS Business
Step 323 trillion yen market▶Moving to the top 10 worldwide

Evolution▶Advancing in the Asia andOceania region

Step 3
Step 2
Expansion

Step 2

BM market

Step 1▶Strategic expansion ofComprehensive FMS menu

▶ Creation of the Comprehensive
FMS business

Step 1Creation▶Strengthening of sales structure

13“Comprehensive” and “Specialized” of Comprehensive
FMS BusinessComprehensive

Specialized

s
es
sin
bu
re
Co

StrategyComprehensive・Service level agreements
・Multi-tasking
Promoting IT for
vending machines

Materials
Evolution of web-basedordering system

Environmental
solution
Propose findings
based onaccumulated data

Security
Remote supervision

Reducing staff and remotesupervision
Smart building
Establishment of patrol model

Cleaning
14

Horizontal integration ofcleaning services modelPursuing service science

SpecializedsesComprehensive

Facility
management

Operations

Vending
machines

sin
bu
re
co
nNo

Management

Specialized▶ Status of the Comprehensive FMS BusinessComprehensive

Specialized

Presenting
1. Promoting comprehensive FMS business and encouraging sales
estimates
Comprehensive FMS
business creation

Selection of target for individual visit▶ Companies that are promoting
globalization▶ FMS Business Promotion
Office newly established▶ Promotion through the media
and direct mail
→Send to 2,100 companies in
July and August▶ Companies, schools, and hospitals thatare rebuilding their organizations▶ Local public organizations, etc. that aredecentralizing

Presenting various
estimates▶ Analysis of companies
and facilities through due
diligence▶ Proposals by consultants
and advisors

2. Aiming for establishment of Comprehensive FMS model locations
Contribute to the streamlining and efficiency of commercial facilities

Construction

Cleaning

Security

Facility
management＋

Material
sales

Vending
machinemanagement

Kiosks for
employees

Deliveryinsidebuildings

15

Newly Added Business (Back Office Support Business)

Comprehensive

Specialized

1. Overview of Back Office Support Business
Major products and services

Materials-related
68businessbillion yen

50.7%

Vending
machinebusiness

49.3%

Certo’s performance in FY02/2010

2. Initiatives taken by the Back Office Support Business

16

Materialsrelated▶ Promotion of initiatives for reducing CO2
through environmentally friendly materials▶ Strengthening of web-based orderingsystemVending
machines▶ Product management utilizing POS
data▶ Promoting IT for vending machines

Conducting
enlargement ofcustomer regions andsalesInitiatives

Comprehensive

Specialized

1. Initiatives for expanding the service menu for the Comprehensive FMS business

Internal
employeesatisfaction

Parking lot
operations

Outsourcing
businessCorebusiness

Temporarystaffing

Children’s
day-carecenteroperations

Securitytransport

2. Construction of the ideal call center model
Setting up Call Center
Project Team

Strengtheningof further
capabilities

Aim for establishment during this FY

Solution center

3. Initiatives for strengthening the apartment business
Setting up Condominium Management Dept.

New business model with possibility for growth17

Initiatives for Environmental BusinessComprehensive

Specialized

1. Strengthen initiatives for environmental solutions
Example: for large-scale commercial facilities
AEON
DELIGHT

Holding regular researchmeetings with energy
companies＋

Power company

Propose ESCO model
Introduction of energy-saving equipment
and optimized operations

2. Promote new environmental solutions businesses

Promotion of smart grids and smart
cities through cooperation between
public and private sectors aiming atenvironmental load reduction
18

Participation in projects
aiming at the establishment ofsmart buildings

Construction of New Models

Specialized

Comprehensive

Research innovations for existing business with a medium-term point of view
1. Initiatives for smart buildings→ Figures made transparent for energy reduction proposals
with thorough analysis of collected data
→ Estimation of years of durability by frequency of use→ Proposal of accident prevention measures

Organize andaccumulate
data

Incorporate
detailed data

Data
analysis

Remotesupervision
centerMeasureresults(Network activity illustration)

Report,proposal ofmeasures

Conduct
measures2. Initiatives for establishing service level agreements→ Consideration of specifications using new evaluation standards such as bacteria count or
the number of incidents or accidents rather than the number of times cleaning conducted
for the cleaning business and the number of people on duty for the security business*SLA (Service Level Agreement)
Commit to a service level that focuses on concrete figures such as bacteria count, gloss
value, etc., rather than the number of times cleaning conducted19

Active Initiatives for M&A

Comprehensive

Specialized

Strengthen structure for promoting M&A aimed at the
expansion of the service menu for the Comprehensive
FMS business and strengthening of core businesses

1. M&A aimed at acquiring capacities that are currently insufficient

2. M&A to speed up growth

3. M&A aimed at expanding the environmental business

20

Overseas Business Strategy

Comprehensive

Specialized

1. Expand business locations
・ September
Commissioned with AEON Mall
Tianjin TEDA
▶ One year from now in China:
Expand from 4 locations to 10
locations

China

Opened in May
JUSCO Chao Bei Joy City Store

2. Sales strategy

Vietnam・Expand business focusing on theenvironmental business
Soft opening in September
AEON Mall Tianjin TEDA

・Study possibility of business inVietnam

July
AEON Shunde Shopping Center

21

Aiming at Early Exploitation of Business Integration Synergies
1. Promotion of cross sales aiming at increasing sales amount▶ Visit approximately 300 companies
ahead of the business integration→Follow through by promoting sales
at 2,000 companies

Commence business with building
maintenance, CO2 work proposals,vending machines, and materials

2. Reduce purchase cost by consolidating suppliers▶ Consolidate existing suppliers of bothcompanies

Reduce purchase cost
3,600 million yen per year

3. Initiatives for reducing SGA

22▶ Office integration→ Consolidate redundant office areas▶ Make the administrative
department more efficient→ Adjust assignment of employees andstreamline the organization

§３ FY02/2011 Earnings Forecast

23

Earnings Forecast for FY02/2011
Millions of yen

Full Year Forecast for FY02/2011

Amount% to netsales

YoY change(%)

FY02/2010 Results

Amount(Results)% to netsales

Net sales

181,000

100.0

129.0

140,299

100.0

Operatingincome12,050

6.7

120.9

9,970

7.1

Ordinary
income12,105

6.7

122.1

9,912

7.1

Net income

6,470

3.6

118.4

5,466

3.9

24

Return to Shareholders
Aiming for 6 consecutive years of increased dividends since FY02/2006

Dividends

FY2/05

FY2/06

FY2/07

FY2/08

FY2/09FY2/10FY 2011interim

FY2/11 yearend (forecast)

¥8.0

¥9.0

¥15.0

¥17.5

¥22.0

¥27.0

¥17.0

¥22.0

40
35
30

¥5.0
¥5.0

Comme morative divide n ds
Divide n ds

Year
Year -end
end
¥17.0
¥17.0

25
20
15

InterimInterim

10

¥17.0
¥17.0

5
0

FY2/05

FY2/06

FY2/07

FY2/08

FY2/09FY2/10FY2/11* As of December 1, 2007, AEON DELIGHT executed a two-for-one stock split. The above dividends are calculated on the assumption that such astock split was executed at the beginning of FY02/2005.
* The Company merged with CERTO Corp. on September 1, 2010. A merger commemorative dividend of 5.00 yen per share is included in thedividend forecast for FY02/2011.

25§４ Reference26

(Reference) P/L Analysis and Shareholders
１．Five-year summary

Millions of yen

FY02/2007
Results

Net sales
Operating
IncomeOrdinary
IncomeNet Income

FY02/2008% to net
sales

１１１,１７０

FY02/2009% to net
sales

Results

１００.０ １３７,５１９

FY02/2010% to net
sales

Results

１００.０ １４５,６９０

FY02/2011% to net
sales

Results

１００.０ １４０,２９９% to net
sales

Forecast

１００.０ １８１,０００

１００.０

５,５７６

５.０

８,３３０

６.１

９,９４６

６.８

９,９７０

７.１

１２,０５０

６.７

５,４８５

４.９

８,１８６

６.０

９,８１２

６.７

９,９１２

７.１

１２,１０５

６.７

２,９９８

２.７

４,３７９

３.２

４,８７６

３.３

５,４６６

３.９

６,４７０

３.６

２．Major Shareholders (top 10)

３．Shareholders by type

Percentage shared is against outstanding shares.

Self-owned

Rank

Shareholders

１ MYCAL Corp.
２ State Street Bank and Trust Company
３ Treasury stock
４ Japan Master Trust Bank, Ltd. (trust account)
５ Japan Trustee Services Bank, Ltd. (trust account)
６ The Chase Manhattan Bank, N.A. London S.L. Omnibus Account
７ AEON DELIGHT Employee Stock Ownership Association
８ AEON Co., Ltd.
９ State Street Bank and Trust Company
１０ AEON DELIGHT Business Partner Stock Ownership Association

No. of shares
Securities firms
４.２%
%
０.６%
owned
Financial
Institutions
２３,２６１,８００ ５６.２％
９.７%
１,９６８,６４２ ４.８％
Individuals
１,７２９,８３８ ４.２％ and others
８.６%
Other
８４１,４００ ２.０％
Japanese
Foreign
Corporations
７３１,４００ １.８％
Corporations
５９.３%
６５７,９５８ １.６％
１７.６%
６４４,１００ １.６％
５６０,８００ １.４％
５０７,０００ １.２％
３９６,０００ １.０％
データは2010年8月31日現在

The above data is as of August 31, 201027

Key Management Indicators
FY02/2008

FY02/2009

FY02/2010

1H FY02/2011

EPS¥１１０.３９*¥１２２.９２¥１３７.７９¥６９.７０ROE

２１.０３％

１９.８９％

１８.９１％

８.３１％

ROA

９.１７％

１０.１１％

１１.１９％

５.４３％

Ratio of ordinary income to
net sales
Ratio of net income to net
sales

５.９５％

６.７４％

７.０６％

７.３４％

３.１８％

３.３５％

３.９０％

４.０１％

２.８８

３.０２

２.８７

１.３５

４７.４３％

５４.１５％

６４.２２％

６５.９０％¥ ５６６.８７*¥６６９.２８¥７８７.８４¥８４９.０２

PER

１９.７９

１０.２９

８.８３

２２.５０

PBR

３.８５

１.８９

１.５４

１.８６

¥２,１８５¥１,２６６¥１,２１６¥１,５７５

Total assets turnover
Shareholders’ equity ratio
Net assets per share(Reference) Share price at end of
periodThe figures with * show amounts after stock split.

28

Thank you very much for your kind attention.
Comments and inquiries should be directed to the following:■These materials contain statements about forecasts and estimates relating to the futureplans, strategies, and performance 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 understand the actual performance may differ from our estimates.
■The information contained in these materials has been prepared by the following methods if
not specifically stated otherwise.
◇ All statements are based on consolidated results.
◇ All figures less than one million yen have been rounded down.
◇ Percentages have been rounded off to 1 decimal place.

IR Contact

AEON
AEON DELIGHT
DELIGHT CO.,CO., LTD.
LTD.
(Stockcode:
9787)(Stock code: 9787)

Ms. Chizuru Ohe
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 (October 6, 2010).
The earnings forecasts contained herein may be revised due to unforeseen factors that may arise in the future.

29