AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report

Summary Report of Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending February 28, 2010
January 6, 2010
Listed exchanges: Tokyo Stock Exchange andOsaka Securities Exchange (First Section)

Listed company name: AEON DELIGHT CO., LTD.

Stock code:
9787
Representative (Title)
President and CEO
General Manager, Delight
Contact:(Title)Communication Dept.

URL http://www.aeondelight.co.jp(Name) Yuiken Tsutsumi(Name) Masatoshi Sashie
Planned date forcommencement ofdividend payments:

Planned date for filing ofJanuary 13, 2010
quarterly financial statements:

TEL +81-6-6260-5632―(Any amount less than one million yen has been rounded down.)

1. Consolidated Results for the First Nine Months of the Fiscal Year Ending February 28, 2010 (fromMarch1, 2009 to November 30, 2009)(1) Consolidated Operating Results (cumulative)(Figures expressed as a percentage represent year-on-year changes.)

Net Sales

Operating Income

Millions of yen

Nine months ended
November 30, 2009
Nine months ended
November 30, 2008

Nine months ended
November 30, 2009
Nine months ended
November 30, 2008

% Millions of yen

Ordinary Income% Millions of yen

Net Income% Millions of yen%

106,887

－

7,305

－

7,270

－

3,895

－

109,399

6.8

7,467

25.6

7,358

26.9

4,018

26.9

Net Income per
Share

Diluted Net Income
per Share

Yen

Yen

98

21

98

06

101

29

101

22

(2) Consolidated Financial Position
Net Sales
As of November 30, 2009
As of February 28, 2009

Operating Income

Millions of yen

Millions of yen

46,85749,03529,76728,079(Reference) Shareholders’ equity As of Nov. 30, 2009:

Ordinary Income

Net Income
%

Yen

63.3
54.1

29,657 million yen

As of Feb. 28, 2009:

747
669
26,550 million yen

2. Dividends
Dividends per Share
(Record Date)

End of Q1
Yen

End of Q2

End of Q3

Year-end

Annual

Yen

Yen

Yen

Yen

Year Ended
－
10
00 －
12
00
22
00
February. 28, 2009
Year Ending
00 －
－
12
February 28, 2010
Year Ending
February 28, 2010
15
00
27
00
(Forecast)
Note: Adjustments to dividend forecast made during the third quarter of the current fiscal year: None

―1―

59
28

AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report

3. Forecast of Consolidated Results for the Year Ending February 28, 2010 (from March 1, 2009 to
February 28, 2010)(Figures expressed as a percentage represent year-on-year changes.)

Operating
IncomeNet Sales
Millions ofyen

Full-year

150,000 3.0%

Millions ofyen

10,100Ordinary Income%

1.5

Millions of
yen

9,900

%

0.9

Net Income per
Share

Net Income
Millions of
yen

5,200

%

6.6

Yen

131

08

Note: Adjustments to consolidated results forecast made during the third quarter of the current fiscal
year: None

4. Other Remarks(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries: Noneresulting in a change in the scope of consolidation)[Newly included: – (Company name:)
Excluded: – (Company name:)]Note: Following the acquisition of shares in Kankyouseibi Co., Ltd. in October 2008, the Company acquired
shares in Do Service Co., Ltd. on April 1, 2009, and included this firm in the scope of consolidation.
(2) Application of simplified accounting methods and accounting methods specific to the: Yes
preparation of quarterly consolidated financial statements:[Note: For more details, please refer to “4. Other Remarks” in the “Qualitative Information and Financial
Statements” section on page 5.](3) Change in accounting principles and procedures, and the methods of presentation used in the
preparation of quarterly consolidated financial statements (matters to be described in the section for“changes in significant items that constitute the basis for preparing quarterly consolidated financial
statements”)
1) Change arising from revisions of: Yesaccounting standards
2) Change due to reasons other than : No
those described in “1)” above[Note: For more details, please refer to “4. Other Remarks” in the [Qualitative Information and
Financial Statements] section on page 5.](4) Number of shares issued (common stock)1) Number of shares issued at end of period (including treasury stock)
As of Nov. 30, 2009:
41,400,000 As of Feb. 28, 2009:
41,400,000
sharesshares2) Number of treasury shares at end of period:
As of Nov. 30, 2009:
1,729,838 As of Feb. 28, 2009:
1,729,647
sharesshares3) Average number of shares during the period (quarterly cumulative)
Nine months ended
39,668,901 Nine months ended
39,670,546
Nov. 30, 2009:
shares Nov. 30, 2009:
shares* Information concerning proper use of financial forecasts and other special instructions(1) Effective from fiscal year ending February 28, 2010, the Company applies the "Accounting Standard for
Quarterly Financial Reporting" (ASBJ Statement No.12) and the "Guidance on Accounting Standard for
Quarterly Financial Reporting" (ASBJ Guidance No. 14). The Company also prepares its quarterly
consolidated financial statements in accordance with the "Regulations on Quarterly Consolidated
Financial Statements."(2) The financial forecast provided in the preceding section was prepared based on the information available
as of the time of publication of this report. Actual results may differ from the forecast due to various factorsthat may arise in the future. For information on financial forecasts, please refer to “3. Qualitative
Information on Forecast of Consolidated Results” in the “Qualitative Information and Financial
Statements” section on page 5.

―2―

AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report[Qualitative Information and Financial Statements]
1. Qualitative Information on Consolidated Operating Results
During the first nine months of the fiscal year ending February 28, 2010 (from March 1, 2009 to November
30, 2009), the global economy saw the prices of various types of goods erode in tandem with shrinking
demands worldwide. In Japan, too, prices continued to fall in a similar fashion, which then brought on adecline in service prices, preventing AEON DELIGHT and its consolidated subsidiaries (the “Group”) fromleaving these difficulties behind. Against this backdrop, the Group has taken the following series of initiatives.
With the organizational change effective September 1, which was designed to further reinforce the sales
function for the second half of the current fiscal year, the Group took an aggressive marketing approach
toward customer businesses and corporate groups, who are becoming increasingly conscious of facility
management costs and the importance of reducing environmental impacts. Through such efforts, the Group
entered into business relationships with a wider range of customers with the objective of providing its services
for various types of buildings, including large-scale commercial complexes in the Kansai region,
manufacturing plants and related facilities of leading companies, global IT (information technology) enterprise
office buildings, and commercial facilities at service/parking areas of expressways, which are attracting
greater users due to the discount on highway tolls.
In addition, since the establishment of an “Environmental Business Division” on September 1 as to make theenvironmental business our fourth core business, the Group has actively offered comprehensive solutions tocustomers concerning how to reduce environmental impact from the standpoint of a building maintenancespecialist. By setting up a “Solar Business Promotion Project” under the new division, the Group is focusing
its attention on the development of a framework and the accumulation of expertise to expedite the installationof solar energy generation systems.
With the aim of consolidating its corporate resilience through improvements in profitability, the Group has
spread its new standards for cleaning services developing last year to its operation sites throughout the nation,
while simultaneously remaining committed to ensuring fair contract prices and reforming working styles.
As a result, the Group recorded consolidated net sales of 106,887 million yen (down 2.3% year on year),
operating income of 7,305 million yen (down 2.2%), ordinary income of 7,270 million yen (down 1.2%), andnet income of 3,895 million yen (down 3.0%).
Results by business segment are summarized below:
The Building Management segment as a whole generated net sales of 102,991 million yen (down 2.1% year
on year), which comprises 31,533 million yen (up 0.8%) from facility management services, 25,816 million
yen (down 6.0%) from security services, 34,241 million yen (up 10.2%) from cleaning services, and 11,400
million yen (down 25.9%) from construction work. Despite solid performance of the first three sub-segments,
the construction work sub-segment was sluggish as most of its orders were one-off. This was primarily due topostponement of investment in plant and equipment. Net sales from other operations amounted to 3,895
million yen (down 7.8%).
Note: The year-on-year comparison data included in the “Qualitative Information on Consolidated Operating
Results” section are provided for the purpose of reference only.

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AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report

2. Qualitative Information on Consolidated Financial Position
Total assets as of November 30, 2009 decreased by 2,178 million yen (4.4%) compared with the balance atthe end of the previous fiscal year to 46,857 million yen. The main reason for this was a decrease of 1,300
million yen in trade notes and accounts receivable, and a decrease of 478 million yen from amortization andrecording of goodwill, partially offset by gain on revaluation of investment securities amounting to 280 million
yen.
Liabilities decreased by 3,866 million yen (18.5%) from the balance at the end of the previous fiscal year to
17,089 million yen. The decrease is primarily attributable to the repayment of funds raised from liquidation of
future receivables amounting to 1,500 million yen, a decrease of 1,479 million yen in trade notes andaccounts payable, a decrease of 1,136 million yen in accounts payable, and a decrease of 962 million yen inincome taxes payable, partially offset by an increase of 1,335 million yen in provision for bonuses.
Net assets increased by 1,688 million yen (6.0%) from the balance at the end of the previous fiscal year to
29,767 million yen. This resulted mainly from an increase of 3,895 million yen in retained earnings from theposting of net income for the first nine months of the current fiscal year, a decrease of 952 million yen inretained earnings due to dividend payments, a decrease of 1,456 million yen in minority interests due to theacquisition of additional shares in consolidated subsidiaries, and an increase of 161 million yen in valuationdifference on available-for-sales securities on market valuation of investment securities.
As a result, the shareholders’ equity ratio rose 9.2 percentage points from 54.1% at the end of the previous
fiscal year to 63.3% as of November 30, 2009.

Cash FlowsThe balance of cash and cash equivalents (hereinafter referred to as “cash”) as of November 30, 2009
increased by 13 million yen (0.2%) compared to the balance at the end of the previous fiscal year, as thebalance increased by 7,215 million yen due to posting of income before income taxes and minority interestsand by 2,063 million yen due to a decrease in trade notes and accounts receivable, while the balance
decreased by 4,234 million yen due to the payment of corporate income taxes, by 1,889 million yen due to adecrease in trade notes and accounts payable, by 1,608 million yen from the acquisition of additional sharesin consolidated subsidiaries, and by 1,500 million yen due to the repayment of funds raised from liquidation of
future receivables.
As a result, the cash balance stood at 6,983 million yen as of November 30, 2009.
Summarized below are cash flows broken down into categories and their underlying factors in the first ninemonths of the current fiscal year.
(Cash flows from operating activities)
Net cash provided by operating activities in the first nine months of the current fiscal year was 4,306 million
yen. Primary contributing factors to the net cash inflow were income before income taxes of 7,215 million yen
posted for the first nine months, an increase of 2,063 million yen due to a decrease in trade notes andaccounts receivable, an increase of 1,335 million yen due to the provision for bonuses, an increase of 1,226
million yen due to depreciation and amortization and goodwill amortization, which was partially offset by adecrease of 4,234 million yen due to the payment of corporate income taxes, a decrease of 1,889 million yen
due to a decrease in trade notes and accounts payable, and a decrease of 880 million yen due to a decreasein accounts payable.
(Cash flows from investing activities)
Net cash used in investing activities in the first nine months was 140 million yen. Major factors behind the net
cash outflow were an inflow of 1,000 million yen from the expenditure on and return of deposits for
consumption under bailment arrangements with affiliates, an inflow of 806 million yen from the refund of time
deposits, an outflow of 1,608 million yen for the acquisition of additional shares in consolidated subsidiaries,
and an outflow of 448 million yen for the acquisition of property, plant and equipment.
(Cash flows from financing activities)
Net cash used in financing activities in the first nine months was 4,153 million yen. This resulted principallyfrom an outflow of 1,500 million yen for the repayment of funds raised from liquidation of future receivables, a
net decrease of 983 million yen in short-term loans payable, an outflow of 952 million yen due to dividend
payments, and the repayment of long-term loans payable of 691 million yen.

―4―

AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report

3. Qualitative Information on Forecast of Consolidated Results
While its construction work and other businesses are expected to experience rough going as the economic
environment remains unpredictable, the Group aims to meet its earnings forecast for the fiscal year ending
February 28, 2010, which was announced on April 6, 2009.

4. Other Remarks(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in achange in the scope of consolidation): None
(2) Simplified accounting methods
Method for estimating credit losses on general receivables:
Since the difference between the actual credit loss ratio as of November 30, 2009 and the ratio computedat the end of the previous fiscal year was deemed insignificant, the actual credit loss ratio at the end of
fiscal 2009 was used in estimating credit losses.
(3) Application of accounting methods specific to the preparation of quarterly consolidated financial
statements: None
(4) Changes in accounting principles and procedures, and the methods of presentation used in the
preparation of quarterly consolidated financial statements
1) Application of the Accounting Standard for Quarterly Financial Reporting
Effective from the fiscal year ending February 28, 2010, the Company applies the “AccountingStandard for Quarterly Financial Reporting” (ASBJ Statement No. 12) and the “Guidance on AccountingStandard for Quarterly Financial Reporting” (ASBJ Guidance No. 14). The Company also prepares its
quarterly consolidated financial statements in accordance with the “Regulations on Quarterly
Consolidated Financial Statements.”
2)

Application of the Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements
Effective from the first quarter of the fiscal year ending February 28, 2010, the Company applies the“Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” (ASBJ Practical Issues Task Force No. 18, issued on May 17,2006) and made necessary adjustments in its consolidated financial statements.
The impact of the application of the new rule on the Company’s profit and loss account is insignificant.

―5―

AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report

5. Consolidated Financial Statements(1) Consolidated Balance Sheet

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets―6―

Q3 FY02/2010(As of Nov.30 2009)(Unit: Millions of yen)
FY02/2009(As of Feb.28 2009)

7,074
16,7244,753△120
28,431

6,991
18,0255,322△188
30,150

723
386
1,437
2,548

762
475
1,364
2,602

11,496618
12,114

11,974649
12,623

2,011
1,925
△173
3,762
18,42546,857

1,730
2,100
△172
3,658
18,88549,035

AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Liquidation of claims credit loans payable
Income taxes payable
Provision for bonuses
Provision for reward of business performance
Provision for directors' bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total valuation and translation adjustments
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets―7―

Q3 FY02/2010(As of Nov.30 2009)(Unit: Millions of yen)
FY02/2009(As of Feb.28 2009)

9,071
89
25
―
1,423
2,158
67
―
3,372
16,20810,551
163
25
1,500
2,385
823
―
103
4,578
20,131

37
607
60
174
881
17,089

56
557
57
153
824
20,956

3,238
2,964
23,796△461
29,5373,238
2,963
20,852△461
26,592

130
△11
119
110
―
29,76746,857

△30
△11
△42
72
1,456
28,07949,035

AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report(2) Consolidated Statement of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Loss on cancellation of company housing
Compensation for accident expenses
Loss on retirement of noncurrent assets
Adjustment of labor insurance exepenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of allowance for doubtful accounts
Compensation income
Surrender profit of insurance
Other
Total extraordinary income
Extraordinary loss
Impairment loss
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income―8―(Unit: Millions of yen)
Nine months from
Mar 1 2009 to Nov.30, 09
106,887
90,967
15,919
8,614
7,305
21
27
7
12
68
17
4
25
20
15
9
11
103
7,270
65
54
22
4
146
193
7
201
7,215
3,310
△41
3,268
50
3,895

AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report(3) Consolidated Statement of Cash Flows(Unit: Millions of yen)
Nine months from
Mar 1 2009 to Nov.30, 09
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Impairment loss
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for directors' retirement benefits
Interest and dividends income
Interest expenses
Decrease (increase) in notes and accounts receivable-trade
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Decrease (increase) in accounts receivable-other
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Proceeds from withdrawal of time deposits
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investments in subsidiaries
Proceeds from purchase of investments in subsidiaries resulting inchange in scope of consolidation
Payments for deposit of subsidiaries and affiliates
Collection of deposit of subsidiaries and affiliates
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Liquidation of claims credit loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

―9―

7,215
561
665
193
1,335
33
3
△48
17
2,063
△1,889
△880
48
△813
8,504
49
△12
△4,234
4,306
806
△91
△448
39
△94
△1,608125△61,300
62,300
130
△140
△983
△691
△1,500△952△26△4,153
△0
13
6,970
6,983

AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report

Effective from the fiscal year ending February 28, 2010, the Company applies the "Accounting Standard
for Quarterly Financial Reporting" [Accounting Standard Board of Japan (ASBJ) Statement No.12] and the"Guidance on Accounting Standard for Quarterly Financial Reporting" (ASBJ Guidance No. 14). The
Company also prepares its quarterly consolidated financial statements in accordance with the"Regulations on Quarterly Consolidated Financial Statements."(4) Note on the going concern assumption: None
(5) Note on significant changes in shareholders’ equity: None―10―

AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report[Reference Information]
Financial Statements for the third quarter of the fiscal year ended February 28, 2009(1) Interim Consolidated Statements of Income(Unit: Millions of yen)Interim period of the previous fiscal year
(From March 1, 2008 to August 31, 2008)

Account

109,399
93,742

I. Net sales
II. Cost of sales

15,657Gross profit

8,189

III. Selling, general, and administrative expenses

7,467

Operating income
V. Non-operating expenses

77
186

Ordinary income

7,358

IV. Non-operating income

117

VI. Extraordinary loss
Net income before income taxes and minority interests

7,241

Current income taxes
Deferred income taxes

3,536
△313

Net income

4,018

―11―

AEON DELIGHT CO.,LTD. Q3/02/2010 Summary Report(2) Interim Consolidated Statements of Cash Flows(Unit: millions of yen)Interim period of the previous fiscal year
(From March 1, 2008 to August 31, 2008)

Category

I. Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Total assets and liabilities
OthersSubtotal
Income taxes paid
OthersNet cash provided by operating activities
II. Cash flows from investing activities
Balance of securities
Balance of tangible fixed assets
Expenditure on acquisition of subsidiaries
OthersNet cash used in investing activities
III. Cash flows from financing activities
Payment on treasury stock
Dividends paid
OthersNet cash used in financing activities
IV. Foreign currency translation adjustments on cash andcash equivalents
V. Change in cash and cash equivalents
VI. Cash and cash equivalents at beginning of period
VII. Cash and cash equivalents at end of period

―12―

7,241
420
578
822
9,063
△4,524
51
4,589

△3
△188
△452
△694
△1,338△0△792△3,375△4,168
△0
△917
7,657
6,740