AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2010
April 14, 2010
Listed exchanges: Tokyo Stock Exchange andOsaka Securities Exchange (First Section)

Listed company name: AEON DELIGHT CO., LTD.

Stock code:
Representative:

9787(Title) President and CEO
General Manager, Delight
Contact:(Title)Communication Dept.
Planned date of ordinary
May 20, 2010
general meeting of shareholders
Planned date for filling ofMay 20, 2010
annual securities report

URL http://www.aeondelight.co.jp(Name) Yuiken Tsutsumi(Name) Masatoshi Sashie

TEL +81-6-6260-5632

Planned date for starting
dividend payment

May 6, 2010

(Figures of less than one million yen have been rounded down)

1.Consolidated Results for the Year ended 02/2010 (from March 1, 2009 to February28, 2010）(1) Consolidated Operating Results(Percentage figures show year-on-year change.)
Net Sales
Operating Income
Ordinary Income
Net Income

FY02/2010
FY02/2009

Millions of yen％

140,299
145,690

-3.7
5.9

Yen

(Reference)

％

9,970
9,946

Diluted Net
Income per
Share

Net Income per
Share
FY02/2010
FY02/2009

Millions of yen

0.2
19.4

Equity in net income of affiliates

1.0
19.9

5,466
4,876

％

12.1
11.3

Ratio of Ordinary Ratio of Operating
Income to Total
Income to Net
AssetsSales％

137.58122.83

Millions of yen

％

9,912
9,812

Return on
EquityYen

137.79122.92Millions of yen

％

18.9
19.9

％

20.3
20.3

FY02/2010 3 million yen

8.0
6.8

FY02/200916 million yen(2) Consolidated Financial Position

Total Assets
Millions of yen

FY02/2010
FY02/2009

Millions of yen

48,67049,035(Reference) Shareholders’ equity

Shareholders’ Equity Net Assets per Share
Ratio

Net Assets
31,36428,07964.2
54.1

As of Feb. 2010 31,253 million yen

yen％

Millions of yen

787.84669.28

As of Feb. 2009 26,550million yen(3) Consolidated Cash Flows

Cash and Cash
Cash Flows from
Cash flows from
Cash Flows from Equivalents
at End ofOperating Activities Investing Activities Financing Activities
PeriodMillions of yen

FY02/2010
FY02/2009

Millions of yen

7,031
6,668

-1,966-2,087

Millions of yen

Millions of yen-4,169-5,255

7,873
6,970

2．Dividends

Dividends per Share
Total
End of End of End of Year- Annual Dividends(annual)
Q1
Q2
Q3
end
FY02/2009
FY02/2010
FY02/2011 (Forecast)

Yen

Yen

Yen

－
－
－

10.00
12.00
1700

－
－
－

Yen

Payout Ratio(consolidated)

Ratio of
Dividends to
Net Assets(consolidated)

Yen

Millions of yen％％

12.00 22.00
15.00 27.00
22.00 39.00

872
1,071

17.9
19.6
27.5

3.6
3.7

Note: Dividend forecast at the end of FY02/2011 includes the commemorative dividend of 5 yen per share, under
the premise that the merger with CERTO Corp. effective as of Sept. 1, 2010 will be approved at the ordinary
general meeting of shareholders. The consolidated payout ratio excluding commemorative dividend will be
23.9%.

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AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

3. Forecast of Consolidated Results for the Year Ending Feb. 28, 2011 (from March 1, 2010 to February
28, 2011）(Figures expressed as a percentage represent year-on-year changes.)

Net Sales

Operating Income Ordinary Income

Millions of yen％ Millions of yen％ Millions of yen

Net Income
per Share

Net Income％ Millions of yen

Yen％

First Half
73,000 0.2
5,000 2.4
5,000 2.9
2,600 0.3
65.54
Full Year
181,000 29.0
12,050 20.9
12,105 22.1
6,470 18.4
142.00Note: The consolidated results forecast is made under the premise of the approval of the merger with
CERTO Corp. at the ordinary general meeting of shareholders. The forecast made is the sum of
AEON DELIGHT full year forecast and the second half of CERTO Corp. forecast. Forecast for net
income per share is calculated with the number of shares issued due to the merger.
4. Other Remarks(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries) : None
Newly Included: Excluded: Note: For more details, please refer “Corporate Group Organization” on page 9.
(2)

Application of simplified accounting methods and accounting methods specific to the preparation ofquarterly consolidated financial statements:
1) Change arising from revisions of accounting standards: Yes
2) Change due to reasons other than described above: No
Note: For more details, please refer to “Changes in significant items that constitute the basis for preparing
quarterly consolidated financial statements” on page 17.
(3)

Number of shares issued (common stock)1) Number of shares issued at end of period (including treasury stock)：
As of Feb. 2010:
41,400,000 shares
As of Feb. 2009:
41,400,000 shares
2) Number of treasury shares at end of period:
As of Feb. 2010:
1,729,838 shares
As of Feb. 2000:
1,729,838 shares
Note: Number of outstanding shares as calculation base for net income per share (consolidated) is shownin “Per share information” on page 25.
(Reference) Individual result of fiscal year ended February 28, 2010(1) Individual Operating Results
Net Sales

FY02/2010
FY02/2009

Millions of yen％

126,528
138,766-8.8
4.0

Operating Income

Ordinary Income

Millions of yen

Millions of yen

9,224
9,514

％

-3.0
16.9

9,274
9,430

Net Income
％

-1.7
17.2

Millions of yen

5,067
4,808

％

5.4
9.2

Net Income
Net Income per Share Diluted
per Share
FY02/2010
FY02/2009

Yen

127.73121.22

Yen

127.53121.13(2) Individual Financial Position

Total Assets
FY02/2010
FY02/2009

Net Assets

Millions of yen

46,13045,680(Reference) Shareholders’ equity

Shareholders’ Equity Net Assets per Share
Ratio

Millions of yen

31,016
26,679As of Feb. 2010 30,906 million yen

67.0
58.2

％

As of Feb. 2009

Millions of yen

779.08670.71

26,607million yen* Information concerning proper use of financial forecasts and other special instructions
The financial forecast provided in the preceding section was prepared on the information available as of
the time of publication of report. Actual results may differ from the forecast due to various factors that may
arise in the future. Since the Company conducts consolidated base financial management, only the
consolidated financial forecast is disclosed.

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AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

1. Results of Operations(1) Analysis of Operating Results<Summary of consolidated results for the fiscal year ended February 28, 2010>
During the fiscal year ended February 28, 2010, the Japanese economy remained bogged down
in a deflationary environment overall, though there were some signs of recovery. The businessenvironment for the building maintenance industry continued to be harsh, as evidenced bycustomer businesses’ reviews of existing facility maintenance and management costs, as well as
fewer new contracts and postponement of equipment replacement, as they remained strongly
inclined toward saving and cutting costs.
Against this backdrop, the AEON DELIGHT Group (the “Group”) pursued proactive marketing
activities for further growth, while at the same time enhancing its corporate resilience as it tapped
into its proposal capabilities by taking up the unique opportunities presented by the ongoingdifficult business environment.
During this fiscal year, the Group placed regional sales forces under the corporate Sales Division
with the aim of broadening the customer base. This initiative has proven successful, winning
contracts to provide services for various types of facilities, including large-scale commercial
complexes in the Kansai region, global enterprise office buildings, facilities of leading electronics
manufacturers, and commercial facilities at expressway service areas, which are attracting agreater number of users.
In a bid to seize upon major business opportunities stemming from the growing awareness ofenvironmental issues across the globe, the Group has made aggressive efforts in the area ofenvironmental impact reduction via the newly established “Environmental Business Division.” The
Group hopes to make the environmental business its fourth core business, along with the facility
management, cleaning, and security businesses.
Overseas, AEON DELIGHT (BEIJING) BUILDING MAINTENANCE CO., LTD. (AEON DELIGHT
BEIJING) headquartered in Beijing, China, set up a branch in the Guangdong Province in January
2010. In the following month of February, a position in charge of international operations wasestablished with a view toward expanding our business throughout China.
With regard to the ongoing initiative to improve profitability by establishing new standards forcleaning services, which began in the previous fiscal year, we launched a project team led bymanagers of the seven branches across the country, thereby successfully increasing profitability byintroducing the new standards to our operations nationwide.
With the aim of strengthening the cleaning business in each region in Japan, in April 2009 we
acquired 40% of the outstanding shares of Do Service Co., Ltd., which is based in the Kinki region,and then the remaining 60% in September 2009. Likewise, we acquired all of the remaining
outstanding shares of Kankyouseibi Co., Ltd. in June 2009. Both companies are now our whollyowned subsidiaries.
Out of our sincere wish to deepen ties with our valued customers by listening once again to what
they have to say during these difficult times, we launched a goyokiki (order-taking) campaign tooffer solutions from the customers’ point of view. Our solutions, formulated from the twin
perspectives of safety and comfort, were appreciated by customers. This campaign achieved
some positive results.
As a result, the Group recorded consolidated net sales of 140,299 million yen (down 3.7% year
on year), operating income of 9,970 million yen (up 0.2%), and ordinary income of 9,912 million
yen (up 1.0%). As for extraordinary profit and loss, we posted extraordinary profit totaling 457
million yen, which included a 290 million yen gain on reversal of allowance for accrued employee
retirement benefits due to a revision of the system. However, we also recorded extraordinary loss
totaling 234 million yen, which included a 190 million yen loss due to impairment. Accordingly, net
income after extraordinary items and income taxes and minority interests came to 5,466 million
yen (up 12.1%).

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AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

As detailed thus far, we made some progress in our attempts to develop new customers; however,with customers asking us to review our service specifications and pushing back their capex plans,
net sales of the Group edged downward from the previous fiscal year. Nevertheless, our earnings
continued to grow despite sluggish top-line growth, with operating, ordinary, and net income alloutperforming the numbers from the previous fiscal year. These results are attributable to a seriesof wholehearted efforts to improve productivity through higher efficiency by way of, for example,
increasing productivity and lowering outsourcing costs of cleaning services, and reviewing internalcosts through “work style reform” under individual initiatives.
% versus previous
fiscal year

FY02/2009

FY02/2010

ChangeOperating Income

Millions of yen
145,690
9,946Millions of yen
140,299
9,970

Millions of yen-5,39024

Ordinary Income

9,812

9,912

99

101.0

Net Income

4,876

5,466

589

112.1

Net Sales

96.3
100.2

<Results by business segment>- Building Management
The Building Management segment overall generated net sales of 134,887 million yen (down
3.5% year on year), which comprises sales from facility management services amounting to
41,666 million yen (down 1.4%), sales from security services coming to 34,281 million yen (down
6.5%), sales from cleaning services reaching 45,050 million yen (up 6.2%), and sales fromconstruction work totaling 13,889 million yen (down 25.0%). The construction work sub-segment
remained weak, as customers showed less inclination toward making capital investments bypostponing equipment replacement, etc.
- Other Operations
Net sales from Other Operations amounted to 5,412 million yen (down 7.4%), owing partly tochanges in service specifications at the request of customers.
FY02/2010

Security

Millions of yen
42,25336,670Millions of yen Millions of yen
41,666-587
34,281-2,389Cleaning

42,40345,050

2,646

106.2

Construction Work

18,515

13,889-4,62675.0

Total Building Management

139,843

134,887-4,956

96.5

5,846

5,412

-434

92.6

145,690

140,299-5,39096.3

Facility Management

Other Operations
Total

Change% versus
previous fiscal
year

FY02/2009

98.6
93.5

<Issues to be addressed>
With no clear prospect of full-scale economic recovery, customer businesses are keeping a tight reinon their costs by reviewing building maintenance costs and postponing capex, etc., and our businessenvironment may remain harsh. However, we will view this kind of environment in a positive light, by
seeing it as an opportunity to achieve renewed progress and push through the following reform
programs in the areas of both “growth” and “quality,” thereby accelerating the drive to enhance ourcorporate value further.
1) Growth management- Taking on the challenge of growth areas(Greater focus on the eco-business)
As the world becomes increasingly eco-conscious, the Group has begun stepping up its―4―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Reportinitiatives in the eco-business during the last fiscal year, in a bid to seize this excellent opportunity
by applying its expertise in building management. Among such initiatives is the development of
the AEON Delight Total Energy Management Service (Ad-TEMS) in response to the Revised Act
on the Rational Use of Energy that took effect in April 2009. This new service helps customers to“visualize” their energy consumption, and we make suggestions on how they can save energy
based on such recorded data. With regard to the solar energy generation system, we have begun
marketing this much-anticipated new energy source in the Kanto region under the lead of the
Solar Business Department of the Environmental Business Division.
(Aggressive development of the overseas business)
With the aim of expanding our business in the ever-growing Chinese market, in January 2010
AEON DELIGHT BEIJING set up a branch in the Guangdong Province (Guangdong Branch) in amove to prepare itself for growth opportunities in South China. At the same time, it has been
making continued efforts to develop further its business in Beijing, Tianjin, and other cities inNorth China. Going forward, we hope to contribute to the “creation of environmental value” forpeople living overseas by providing them with “safety, security, cleanliness, and comfort,” with aneye toward expanding our business to ASEAN countries.
(Creating a comprehensive facility management service (FMS) business)
There has been a growing trend among enterprises competing in the global arena and thoseseeking to enhance their competitiveness by streamlining their business structures to focus
resources on their core businesses without having to be bothered with non-core businesses. In
response to this trend, the Group intends to meet a broad range of customer needs that go
beyond mere building maintenance service by utilizing its experience and expertise in providing
solutions that combine facility management, cleaning, security, and other services. Our goal is toprovide a package solution that caters to such customer needs, in the hopes of helping
customers to reduce costs and ease the workload associated with general affairs and otheradministrative operations, thereby enabling them to focus on their core businesses.
As announced on March 25, 2010, AEON DELIGHT CO., LTD. (“AEON DELIGHT”) and CERTO
Corporation (“CERTO”) have signed a merger agreement in which AEON DELIGHT is thesurviving entity, which will take effect on September 1, 2010 subject to approval at the ordinary
general meeting of shareholders scheduled for May 2010. CERTO provides office supplies andpackaging materials to businesses, offers vending machine operation services, and subcontracts
a broad range of back-office operations.
Taking advantage of the opportunity afforded by the merger of the two companies, we would
also like to capitalize on the AEON Group’s collective strength, while furthering the AEON Group“DNA” which is embodied in the “customer focused to the first degree” principle. Our goal is tocreate a “comprehensive facility management service (FMS) business,” through which we canoffer total solutions to diverse customer needs and manage facilities while keeping in mind theperspectives of the people who work in and visit such facilities.
- Further growth in existing markets
We have been involved in the business of managing buildings for customers, but so far, we may
not have been particularly aggressive in offering solutions on incidental services, such as thedesign of common areas of buildings and interior finish work. With a view toward branching out
into these areas, we will reinforce the organizational and workforce structure so that we canproactively offer solutions. In addition, we will carry on with the goyokiki campaign launched in theprevious fiscal year, in which we visit customers on a regular basis to come up with suggestions
on replacement, repair, or reconditioning of equipment that we have provided from the customers’
perspective.
We do not believe that we can possibly achieve a significant expansion of our business in thedomestic building maintenance market if we simply follow an extension of the conventional
business model. Given the ever-growing demand for technical solutions that enhance safety andcomfort, however, we believe that there exists a huge market where we can meet latent social
demands if only we would make use of different approaches or perspectives. We will step up
efforts to provide solutions, based on our technical expertise, for various types of facilities as well
as for our core market of commercial complexes. At the same time, we will make proactive
suggestions on how to reduce environmental impacts and carry out reviews of service―5―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Reportspecifications, etc., that will lead to reduced costs, so that we can achieve further growth as wegain recognition as a true partner to our customers.
2) Quality management- Changing the work style of field workers
Following in the footsteps of the initiative in cleaning services that was spread across thecountry in the previous fiscal year, in the fiscal year ending February 28, 2011 we will review the
work routine and business model for management of buildings with no resident staff. To expedite
this change, on March 1, 2010 we established the Facility Business Division, and the Facility
Business Department under it. This new initiative to increase the efficiency of circuit centers has
already begun, with the kick-off of a project team led by managers of the seven branches acrossthe country on February 11, 2010.
Among other initiatives in this regard are one for enhancing productivity by introducing
multitasking operations and another for building an efficient workflow by utilizing information
technology.
- Efforts to increase productivity in the service industry and develop human resources
February 2010 saw the completion of the AEON DELIGHT Academy Nagahama in Shiga
Prefecture. At this research and training facility, we will conduct research for higher productivity inthe service industry through industry-government-academy collaboration by redefining“documentation of specifications,” “standardization,” and “labor saving” for the service business.
Knowing that human resources are the greatest asset of the Group, we will leverage the openingof the AEON DELIGHT Academy Nagahama to revise the system and structure for humanresources development and pour greater resources into their training with an eye toward“relentless pursuit of better services” and “achieving higher productivity” in the field.
Through the abovementioned initiatives, we will seize upon the excellent opportunity presented
by these difficult environmental changes to enhance our corporate resilience and develop new
businesses. By managing “growth” and “quality of services,” we will work hard to increase thecorporate value of the Group even more.
<Forecast for the year ending February 28, 2011>
Because of steady implementation of the aforementioned measures, we forecast consolidated
earnings results for the year ending February 28, 2011 as follows:(Percentage figures show year-on-year % change)

Net Sales
Millions of yen

Operating Income Ordinary Income% Millions of yen% Millions of yen

Net Income
per Share

Net Income% Millions of yen%

Yen

Six months ending
Aug. 31, 2010

73,000

0.2

5,000

2.4

5,000

2.9

2,600

0.3

65

54

Year ending Feb.
28, 2011

181,000

29.0

12,05020.9

12,105

22.1

6,470

18.4

142

00

<Information on proper use of the financial forecast and other special instructions>
The financial forecast described above assumes that the proposed merger with CERTO
effective September 1, 2010 will be approved at the general meeting of shareholders. The
numbers shown above have been obtained simply by adding together the numbers for AEON
DELIGHT’s full-year forecast for the year ending February 28, 2011 and those for CERTO’s
forecast for the second half of the corresponding year. The forecast for net income per share (forthe year ending February 28, 2011) is based on the number of outstanding shares after themerger and is shown here for reference purposes.
The financial forecast described above has been prepared based on the information available
as of the date of publication of this report. Actual results may differ from the abovementioned
forecast due to various factors that may arise in the future.
AEON DELIGHT operates its business as a corporate group focusing on consolidated
performance, and discloses its earnings forecast on a consolidated basis only.

―6―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(2) Analysis of Financial Position<Summary of consolidated financial position for the fiscal year ended February 28, 2010>
1) Current assets
Current assets at the end of the fiscal year under review decreased by 124 million yen from theend of the previous fiscal year to 30,026 million yen (down 0.4%). This decrease resulted mainly
from an increase of 973 million yen in cash and deposits, a decrease of 1,740 million yen in tradenotes and accounts receivable, and an increase of 500 million yen in deposits for consumption
paid to affiliates under bailment arrangements.
2) Fixed assets
Fixed assets at the end of the fiscal year under review declined by 240 million yen from the endof the previous fiscal year to 18,644 million yen (down 1.3%). The main factors behind this decline
were an increase of 186 million yen in goodwill due to acquisition of subsidiaries’ shares, adecrease of 865 million yen resulting from goodwill amortization, and an increase of 319 million
yen due to the mark-to-market accounting of investment securities.
3) Current liabilities
Current liabilities at the end of the fiscal year under review decreased by a total of 3,849 million
yen from the end of the previous fiscal year to 16,281 million yen (down 19.1%). This decrease isattributable primarily to a decrease of 1,576 million yen in trade notes and accounts payable and adecrease of 1,500 million yen due to the repayment of funds raised from the liquidation of future
receivables.
4) Long-term liabilities
Long-term liabilities at the end of the fiscal year under review increased by a total of 199 million
yen from the end of the previous fiscal year to 1,024 million yen (up 24.2%). This increase wasdue primarily to an increase of 185 million yen resulting from the recording of deferred tax liabilities
mainly from the mark-to-market accounting of investment securities.
5) Net assets
Net assets at the end of the fiscal year under review increased by 3,284 million yen from the endof the previous fiscal year to 31,364 million yen (up 11.7%). This increase was attributable mainly
to an increase of 5,466 million yen in retained earnings due to posting of net income, a decreaseof 952 million yen in retained earnings due to dividend payments, and a decrease of 1,456 million
yen in minority interests.
<Summary of consolidated cash flows for the fiscal year ended February 28, 2010>
The balance of cash and cash equivalents (“cash”) at the end of the fiscal year under review
increased by 902 million yen from the balance at the end of the previous fiscal year to 7,873
million yen (up 12.9%). This increase in the cash balance was a result of the posting of net
income before income taxes and minority interests of 10,134 million yen and the collection of
trade notes and accounts receivable of 2,507 million yen. However, the impact of these items
was partially offset by income tax payments amounting to 4,233 million yen, repayment of tradenotes and accounts payable of 1,986 million yen, and repayment of funds raised from theliquidation of future receivables amounting to 1,500 million yen.
Cash flows for the fiscal year under review and their underlying factors are summarized below.
(Cash flows from operating activities)
Net cash provided by operating activities came to 7,031 million yen (up 5.4% year-on-year).
This was attributable mainly to posting of net income before income taxes and minority interestsof 10,134 million yen, collection of trade notes and accounts receivable of 2,507 million yen,retained earnings from goodwill amortization of 865 million yen, repayment of trade notes andaccounts payable of 1,986 million yen, and income tax payments amounting to 4,233 million yen.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 1,966 million yen (down 5.8% year-on-year).
The main factors behind this were an outflow of 1,608 million yen for the acquisition of additional
shares of consolidated subsidiaries, an outflow of 793 million yen for the acquisition of tangible―7―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

fixed assets, and an outflow of 500 million yen for expenditure and return of deposits for
consumption under bailment arrangements with affiliates.
(Cash flows from financing activities)
Net cash used in financing activities was 4,169 million yen (down 20.7% year-on-year). This
owed mostly to redemption of funds raised from the liquidation of future receivables amounting
to 1,500 million yen, a net decrease in short-term loans payable amounting to 1,017 million yen,and dividend payments amounting to 951 million yen.
Changes in the Group’s cash flow indicators are as shown below.
FY02/2008
Shareholders’ equity ratio (%)
Shareholders’ equity ratio at market
value (%)
Ratio of interest-bearing debts tocash flows (%)

FY02/2009

FY02/2010

47.4

54.1

64.2

182.8

102.4

99.1

0.9

0.3

0.0

─

7,361.7

528.7

Interest coverage ratio

Shareholders’ equity ratio: Shareholders’ equity / Total assets
Shareholders’ equity ratio at market value: Total market capitalization / Total assets
Ratio of interest-bearing debts to cash flows: Interest-bearing debts / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest paid
Note:
1. The abovementioned indicators have been calculated based on consolidated financial data.
2. Total market capitalization was calculated as the closing stock price at the end of the period
multiplied by the number of shares outstanding (excluding treasury sock) at the end of theperiod.
3. Interest-bearing debts represent all debts that are recorded in the consolidated balance
sheets on which interest is paid.
4. Operating cash flows are the “net cash provided by operating activities” reported in the
consolidated statements of cash flows.
5. Interest paid represents the “interest paid” reported in the consolidated statements of cash
flows.

(3) Basic Policy on Profit Distribution and Dividends for Fiscal 2010 and 2011
AEON DELIGHT strives to ensure sustainable improvement of the Group’s corporate value andshareholder value, and regards the consolidated payout ratio as an important indicator for dividends
to shareholders. Accordingly, in order to maintain a stable dividend payment while taking into
account dividends on consolidated shareholders’ equity, we aim to achieve a consolidated payout
ratio of 20% or higher.
We will use retained earnings for proactive investments in sustainable growth and improvement in
the quality of our services, such as creation of environmental value for the realization of a low
carbon society, etc., as well as information technology, human resources development, and M&As.
We will endeavor to meet shareholders’ expectations by enhancing our corporate value inaccordance with medium- and long-term growth strategies.
As announced on October 6, 2009, we will pay a year-end dividend of 15 yen per share for theyear ended February 28, 2010 (fiscal 2010). The year-end dividend, when combined with thedividend of 12 yen per share at the end of the second quarter, will bring the total annual dividend up
to 27 yen per share, an increase of 22.7% from the previous year.
As for dividend payments for the year ending February 28, 2011 (fiscal 2011), we project anannual dividend of 39 yen per share, an increase of 12 yen from the previous term (a dividend of 17
yen per share at the end of the second quarter and a year-end dividend of 22 yen per share,―8―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

including a dividend of five yen per share commemorating the merger; an increase of 44.4% fromthe annual dividend to be paid for the current fiscal year). Please note that the commemorative
dividend is subject to approval at the ordinary general meeting of shareholders concerning the
proposed merger with CERTO scheduled on September 1, 2010.

2. Corporate Group Organization
The AEON DELIGHT Group comprises AEON DELIGHT CO., LTD. (“AEON DELIGHT”), tenconsolidated subsidiaries, and one equity method affiliate. AEON DELIGHT is a member of thecorporate group of AEON Co., Ltd., a pure holding company. The AEON Group organizes its operatingcompanies into 11 segments (GMS <general merchandise stores>, SM <supermarkets>, strategic
small stores, drugstores, specialty stores, integrated financial services, shopping center development,
services, non-store operations, Asia operations, and the China business).
The AEON DELIGHT Group is positioned in service operations among the aforementioned businesssegments of AEON Co., Ltd., and as one of the core companies of the AEON Group it is engaged
mainly in the following operations.
Building Management:

Run by AEON DELIGHT, nine consolidated subsidiaries, and one equity
method affiliate
Facility management: Building facility maintenance, inspection, and improvement
Security: Security and guards for building facilities and events
Cleaning: Environmental preservation for building facilities
Construction work: Repair work for building facilities
Other Operations: Run by AEON DELIGHT and five consolidated subsidiaries
Other businesses: Technical training and temporary staffing business, business incidental
to store operations management, document control business, etc.
Businesses are segmented by type.

3. Management Policy(1) Basic management policy
Since there have been no significant changes from the information disclosed in the Summary
Report of Consolidated Financial Statements for the Fiscal Year Ended February 28, 2007 (publishedon April 4, 2007), disclosure in this report shall be omitted.
The abovementioned report is available at the following URL:
http://www.aeondelight.co.jp/ (AEON DELIGHT website)
http://www.tse.or.jp/listing/compsearch/index.html (Tokyo Stock Exchange website (Listed Company
Information))(2) Target management indicators and medium- and long-term management strategies
As announced on March 25, 2010, AEON DELIGHT and CERTO have signed a merger agreementin which AEON DELIGHT is the surviving entity. The merger will take effect on September 1, 2010
subject to approval at the ordinary general meeting of shareholders scheduled in May 2010. The
AEON DELIGHT Group has long sought to become a group of companies that create “environmental
value” going beyond the existing framework of building maintenance services. By taking up theopportunity presented by this merger with CERTO, we aim to expand the scope of our services in abid to meet emerging social demands. Going forward, we will strive to create Japan’s firstcomprehensive facility management service (FMS) business and further expand our service menu
through alliances with external partners from many different sectors, while at the same time
accelerating the drive to increase our corporate value by making the best possible use of AEONGroup’s management resources.
With these initiatives in place, we will shoot for operating revenues of 300 billion yen and an
operating margin of nine percent for the year ending February 28, 2013.
(3) Issues to be addressed
As described in “Analysis of Operating Results <Issues to be addressed>” on page 4.

―9―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

4. Consolidated Financial Statements(1) Consolidated Balance Sheet
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Deferred tax assets
Deposit of subsidiaries and affiliates
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery for area control, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets(Millions of yen)
FY02/2009
FY02/2010

―10―

6,991
18,025
28
1,281
2,500
1,512
-188
30,1507,964
16,284
20
1,067
3,000
1,811
-122
30,026

762
343
475
13
1,007
2,602

1,185
305
284
15
951
2,741

11,974649
12,623

11,295629
11,924

1,730
46
534
1,518
-172
3,658
18,88549,035

2,050
65
289
1,712
-141
3,977
18,644
48,670AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

Liabilities(Millions of yen)
FY02/2009
FY02/2010

Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Liquidation of claims credit loans payable
Accounts payable-other
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for reward of business performance
Provision for directors' bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
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―11―

10,551
163
25
1,500
2,422
2,385
705
823
―
103
1,451
20,131

8,974
55
25
―
2,104
2,191
494
738
101
―
1,594
16,281

56
―
557
57
153
824
20,956

31
185
577
65
164
1,024
17,306

3,238
2,963
20,852-461
26,592

3,238
2,964
25,366-461
31,107

-30
-11
-42
72
1,456 ―
28,07949,035

149
-3
145
110
31,364
48,670AEON DELIGHT CO., LTD. (9787) FY02/2010 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
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of company housing
Loss on retirement of noncurrent assets
Compensation for accident expenses
Adjustment of labor insurance expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of provision for retirement benefits
Reversal of allowance for doubtful accounts
Compensation income
Profit for surrender value
Income for insurance
Other
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
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―12―(Millions of yen)
FY02/2009
FY02/2010
145,690
140,299
124,735
119,180
20,955
21,11811,008
11,148
9,946
9,970
48
23
16
20
108

27
30
3
28
88

48
55
50
47
29
10
241
9,812

18
31
41
14
9
30
147
9,912

―
―
―
64
38
7
110

290
83
54
―
―
29
457

―
―
913
26
940
8,982
4,243
-216
4,026
80
4,876

190
28
―
15
234
10,134
4,045
572
4,618
50
5,466

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report( 3 ) Statements of Changes in Shareholders’ Equity
Shareholders' equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period―13―(Millions of yen)
FY02/2009
FY02/2010

3,238

3,238

―
3,238

―
3,238

2,963

2,963

―
―
2,963

1
1
2,964

16,772

20,852

-793
4,876
-2
4,080
20,852

-952
5,466
―
4,514
25,366

-460

-461

-9
8
0
-461

-8
8
0
-461

22,512

26,592

-793
4,876
-9
6
4,079
26,592

-952
5,466
-8
9
4,515
31,107

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(Millions of yen)
FY02/2009
FY02/2010
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Subscription rights to shares
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

―14―

-25

-30

-5
-5
-30

180
180
149

0

-11

-11
-11
-11

7
7
-3

-24

-42

-17
-17
-42

188
188
145

―

72

72
72
72

38
38
110

―

1,456

1,456
1,456
1,456

-1,456-1,456―22,48828,079

-793
4,876
-9
6
1,511
5,591
28,079

-952
5,466
-8
9
-1,2303,284
31,364

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(4) Consolidated Statement of Cash Flow

(Millions of yen)
FY02/2009
FY02/2010

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
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
Loss on valuation of membership
Loss (gain) on sales of property, plant and equipment
Loss on cancellation of company housing
Loss (gain) on valuation of investment securities
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) investing activities
Proceeds from withdrawal of time deposits
Payments into time deposits
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of investments in subsidiaries
Purchase of investments in subsidiaries resulting in change inscope of consolidation
Proceeds from purchase of investments in subsidiaries resulting
in change in scope of consolidation
Payment for deposit of subsidiaries and affiliates
Collection of deposit of subsidiaries and affiliates
Payments of loans receivableCollection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other, net
Net cash provided by (used in) investing activities

―15―

8,982
638
―
857
-148
0
5
-71
48
0
66
55
913
533
80
7
-41
-794
11,13472
0-4,537
6,668

10,134
728
190
865
-84
2
7
-57
18
―
75
31
4
2,507
-1,986-493
48-776
11,21959-13-4,233
7,031

―
―
9
-505
83
-202
-4
7
―

806
-91
―
-793
47
-119
-5
6
-1,608

-463

―

―

125

-91,300
90,300
-2
―
-85
101
-22
-2,087-79,800
79,300
-3
67
-52
47
105
-1,966

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(Millions of yen)
FY02/2009
FY02/2010
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Liquidation of claims credit loans payable
Repayment of long-term loans payable
Cash dividends paid
Net decrease (increase) in treasury stock
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

―16―

33
-4,500―-792
3―-5,255
-13
-687
7,657
6,970

-1,017-1,500
-697
-951
―
-2
-4,169
7
902
6,970
7,873

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(5) Notes on premise of going concern
None(6) Changes in significant items that constitute the basis for preparing quarterly consolidated financial
statements
1) Application of the Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements
Effective from the fiscal year ended February 28, 2010, the Company applied 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) andmade necessary adjustments in its consolidated financial statements.
The impact of the application of this new rule on the Company’s profit and loss account is
negligible.
2) Accounting standard for lease transactions
Previously, finance lease transactions for which ownership of the leased assets is nottransferred to the lessees were not capitalized, but were rather accounted for in the samemanner as ordinary rental transactions. Effective from the fiscal year ended February 28, 2010,
the Company adopted the Accounting Standard for Lease Transactions (ASBJ Statement No. 13;
originally issued June 17, 1993 (1st Subcommittee, Business Accounting Council); final revision
March 30, 2007) and the Guidance on Accounting Standard for Lease Transactions (ASBJ
Guidance No. 16; originally issued January 18, 1994 (Accounting System Committee, JapaneseInstitute of Certified Public Accountants); final revision March 30, 2007). Consequently, theCompany now accounts for such finance lease transactions in the same manner as purchaseand sales transactions. The impact of this change on the Company’s consolidated profit and loss
for the year under review is negligible.
The accounting treatments applicable to ordinary rental transactions shall still be applied to
non-ownership-transfer finance lease transactions that commenced on or before February 28,
2009.

―17―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(7) Notes on consolidated financial statements(Employees’ pension and retirement benefits)
Fiscal year ended February 28, 2009
1. Outline of employees’ pension and retirement benefits
The Company provides a defined benefit corporate pension fund plan established by AEON Co., Ltd.
(parent company) and its main affiliates in Japan, as well as a defined contribution pension plan andretirement benefits advance payment plan.
Consolidated subsidiaries provide a lump-sum severance payment plan.
2. Liabilities for employees’ pension and retirement benefits(Millions of yen)
-1,990(1) Projected benefit obligation(2) Fair value of plan assets

828(3) Unfunded benefit obligation (1) + (2)-1,161(4) Unrecognized actuarial differences

614(5) Allowance for accrued employee retirement benefits(net) (3) + (4)-547(6) Prepaid pension cost

9(7) Allowance for accrued employee retirement benefits (5) – (6)-557

3. Employees’ pension and retirement benefits expenses(1) Service cost

(Millions of yen)
189(2) Interest cost34(3) Expected return on plan assets-18(4) Amortization of actuarial differences

94(5) Other*

190(6) Employees’ pension and retirement benefit expenses (1) + (2) + (3) + (4) + (5)491*Includes contributions to the defined contribution pension plan and retirement benefits paid in advanceto employees pursuant to the retirement benefits advance payment plan.
4. Basis for calculation of employees’ pension and retirement benefit obligation(1) Periodic allocation of anticipated employees’
Allocated equally to each service year
pension and retirement benefits(2) Discount rate
1.5%～2.4%(3) Expected rate of return on plan assets(4) Amortization of unrecognized actuarial
differences

―18―

2.05%
10 years (amortized using the straight-line
method over certain years within the averageremaining service period of employees at thetime of occurrence of such a difference,
beginning from the fiscal year following theyear in which the difference occurred)

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

Fiscal year ended February 28, 2010
1. Outline of employees’ pension and retirement benefits
The Company provides a defined benefit corporate pension fund plan established by AEON Co., Ltd.
(parent company) and its main affiliates in Japan, as well as a defined contribution pension plan andretirement benefits advance payment plan.
Consolidated subsidiaries provide a lump-sum severance payment plan.
2. Liabilities for employees’ pension and retirement benefits(Millions of yen)
-1,880(1) Projected benefit obligation(2) Fair value of plan assets

975(3) Unfunded benefit obligation (1) + (2)-905(4) Unrecognized actuarial differences

570(5) Allowance for accrued employee retirement benefits(net) (3) + (4)-334(6) Prepaid pension cost242(7) Allowance for accrued employee retirement benefits(5) – (6)-577

3. Employees’ pension and retirement benefits expenses(1) Service cost

(Millions of yen)
220(2) Interest cost34(3) Expected return on plan assets-10(4) Amortization of actuarial differences

104(5) Other*

193(6) Employees’ pension and retirement benefit expenses (1) + (2) + (3) + (4) + (5)542*Includes contributions to the defined contribution plan and retirement benefits paid in advance toemployees pursuant to the retirement benefits advance payment plan.
4. Basis for calculation of employees’ pension and retirement benefit obligation(1) Periodic allocation of anticipated employees’
Allocated equally to each service year
pension and retirement benefits(2) Discount rate
2.4%(3) Expected rate of return on plan assets(4) Amortization of unrecognized actuarial
differences

―19―

1.28%
10 years (amortized using the straight-line
method over certain years within the averageremaining service period of employees at thetime of occurrence of such a difference,
beginning from the fiscal year following theyear in which the difference occurred)

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(Segment Information)[Business segment information]
Fiscal year ended February 28, 2009

(Millions of yen)
Other
Operations

Building Management
Facility
management

Security

Cleaning

Construction
work

Other
businesses

Eliminations /Consolidated
corporate

Total

I.
Net
Sales
and
operating income or loss
Net sales(1) Sales to unaffiliatedcustomers

42,25336,67042,403

18,515

5,846

145,690─

145,690(2) Intersegment sales
or transfer

18

64

31

93

674

882

(882)

─

42,272

36,73542,435

18,6096,520

146,573(882)

145,690

Operating expenses

36,91634,47137,44816,902

5,899

131,638

4,105

135,744

Operating income

5,355

2,264

4,986

1,706

621

14,934(4,988)

9,946

9,273

4,093

5,159

908

383

19,817

29,21849,035

86

76

119

7

17

307

331

638

86

27

174

─

0

289

416

706

Total sales

II. Assets, depreciation,and capital expenditures
AssetsDepreciationamortization
Capital expenditures

andNotes:
1. Business segments are classified based on the internal control framework.
2. Main services of each business segment are as follows:(1) Building Managementa. Facility management: Building facility maintenance, inspection, and improvement
b. Security: Security and guards for building facilities and events
c. Cleaning: Environmental preservation for building facilities
d. Construction work: Repair work for building facilities(2) Other Operations
a. Other businesses: Technical training and temporary staffing business, business incidental tostore operations management, document control business, etc.
3. Unallocable operating expenses included in “Eliminations/Corporate” amount to 4,988 million
yen, and consist mainly of general affairs and other administrative expenses of the Company.
4. Corporate assets included in “Eliminations/Corporate” amount to 29,218 million yen, and consist
mainly of surplus funds (cash deposits), long-term investments (investment securities), goodwill,
and assets belonging to the administrative function of the Company.

―20―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

Fiscal year ended February 28, 2010

(Millions of yen)
Other
Operations

Building Management
Facility
management

Security

Cleaning

Construction
work

Other
businesses

Eliminations /Consolidated
corporate

Total

I.
Net
sales
and
operating income or loss
Net sales(1) Sales to unaffiliatedcustomers

41,66634,28145,05013,8895,412

140,299―

140,299(2) Intersegment sales
or transfer

10

141

127

156

578

1,013

(1,013)―

41,67634,42245,177

14,046

5,990

141,313(1,013)140,299

Operating expenses

37,16831,68439,397

12,724

5,242

126,2174,111

130,329

Operating income

4,507

2,738

5,780

1,321

748

15,095(5,125)

9,970

9,099

4,062

5,187

825

368

19,54329,126

48,670

97

74

240

8

11

433

295

728

61

34

220

1

―

317

791

1,109

Total sales

II. Assets, depreciation,and capital expenditures
AssetsDepreciationamortization
Capital expenditures

andNotes: 1. Business segments are classified based on the internal control framework.
2. Main services of each business segment are as follows:(1) Building Managementa. Facility management: Building facility maintenance, inspection, and improvement
b. Security: Security and guards for building facilities and events
c. Cleaning: Environmental preservation for building facilities
d. Construction work: Repair work for building facilities(2) Other Operations
a. Other businesses: Technical training and temporary staffing business, business incidental tostore operations management, document control business, etc.
3. Unallocable operating expenses included in “Eliminations/Corporate” amount to 5,125 million
yen, and consist mainly of general affairs and other administrative expenses of the Company.
4. Corporate assets included in “Eliminations/Corporate” amount to 29,126 million yen, andconsist mainly of surplus funds (cash deposits), long-term investments (investment securities),
goodwill, and assets belonging to the administrative function of the Company.
[Geographical segment information]
Fiscal year ended February 28, 2009
Since the proportion of business conducted by the Group in Japan exceeds 90% of the total
sales and total assets of all segments, geographic segment information is not presented.
Fiscal year ended February 28, 2010
Since the proportion of business conducted by the Group in Japan exceeds 90% of total sales
and total assets of all segments, geographic segment information is not presented.
[Overseas sales]
Fiscal year ended February 28, 2009
Since the proportion of overseas sales is less than 10% of consolidated sales, overseas sales
information is not presented.
Fiscal year ended February 28, 2010
Since the proportion of overseas sales is less than 10% of consolidated sales, overseas sales
information is not presented.
―21―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report[Related party information]
Fiscal year ended February 28, 2009
Parent companies and principal corporate shareholders, etc.

Attribute

Name ofcompanies,
etc.

Address

CapitalBusiness lines(millions/ occupationof yen)Pure holding
AEON Co., Mihama-ku,
199,054
company*3
Ltd.
Chiba City

Parent(Parent
company’s)
ownership ofvoting rights,
etc. (%)

Nature of relationship
Concurrent
directorship,etc.

Businessrelationship

Nature of transactions

Business
Sales
Subcontracting of transaction
facility(Parent
Transferee(s):management,
company’s
Bailment for
security, cleaning,
6
ownership)
Concurrent construction work, Transaction consumption*
Direct 1.5
director(s): 2 and other services, other than
Indirect 58.6
businessand bailment for
Return oftransaction
consumption
deposits for
consumption*

Transactio
n amount(millionsof yen)Item

Balanceat yearend(millionsof yen)22,928──

Depositsfromaffiliates

2,500

Accounts
15,774 receivabl
e

1,792

91,30090,300company

MYCAL Corp.

Chuo-ku,
Osaka City

General
20,000 merchandise
store(Parent
company’s
ownership)
Direct 58.6
Indirect ─

Subcontracting offacility
management,
Transferee(s): security, cleaning,
Business2
construction work, transaction
and other services,and leasing of
offices, etc.

Sales

Terms of transaction and policy on determination of terms of transaction, etc.
Pricing and other terms of transaction for relevant parties are the same as those for other parties who
are not related to the Company.
Notes: *1 Interest rates on deposits for consumption are decided rationally by considering market rates.
*2 Consumption taxes, etc. are not included in the transaction amount, but are included in thebalance at year-end.
*3 Effective August 21, 2008, AEON Co., Ltd. spun off its retail business, transferring it to AEONRETAIL Co., Ltd., its wholly-owned subsidiary. With this move, AEON Co., Ltd. became a pureholding company.
Fellow subsidiaries, etc.

Attribute

Name ofcompanies,
etc.

Address

ParentAEON
Mihamacompany’s RETAIL Co., ku, Chiba
Ltd.
City
subsidiary(Parent
company’s)
CapitalBusinessownership of(millionslines /
of yen) occupation voting rights, etc.
(%)
General50,000 merchandis
e storeParentMihamaAEON MALL
ku, ChibaCo., Ltd.
City
subsidiarycompany’s

Parentcompany’s
subsidiary
Parentcompany’s
subsidiary

AEON
KYUSHU
Co., Ltd.

AEON
Hokkaido
Corp.

Hakataku,
FukuokaCity
Shiraishiku,
SapporoCity

16,662

Shopping
center /Insurance
agent

General3,144 merchandis
e storeNone

Direct 0.3
Indirect ─(Ownership)
Direct 0.2
Indirect ─

Nature of relationship

Business relationship

Concurrent
director(s): 1

Subcontracting offacility management,
Businesssecurity, cleaning,transaction
construction work, andother services

Sales

Subcontracting offacility management,
Concurrent
Businesssecurity, cleaning,
director(s): 1
transaction
construction work, andother services

Sales

Subcontracting offacility management,
Businesssecurity, cleaning,transaction
construction work, andother services

Sales

Subcontracting offacility management,
Businesssecurity, cleaning,transaction
construction work, andother services

Sales

─

(Ownership)
General6,100 merchandis
e storeDirect 0.1
Indirect ─

Nature oftransactions

Concurrent
directorship,etc.

─

(Ownership)

Transaction
amount(millions ofyen)

21,772

7,860

6,620

4,504

Item

Notes
receivable823

Accounts
receivable

4,970

Notes
receivable

17

Accounts
receivable

956

Notes
receivable

122

Accounts
receivable

667

Notes
receivable291

Accounts
receivable373

Terms of transaction and policy on determination of terms of transaction, etc.
Pricing and other terms of transaction for relevant parties are the same as those for other parties who
are not related to the Company.
Note: Consumption taxes, etc. are not included in the transaction amount, but are included in thebalance at year-end.

―22―

Balance at
year-end(millionsof yen)AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

Fiscal year ended February 28, 2010
1. Transactions with related parties
Transactions between the reporting company and related parties(1) Parent companies and principal shareholders (limited to corporations, etc.), etc. of the reporting
companyType

Name ofcompanies,
etc.

Address

CapitalBusiness(millionslines /
of yen) occupation(Parent
company’s)
ownership ofvoting rights,
etc. (%)

Nature of relationship
Concurrent
directorship,etc.

Businessrelationship

Nature of transactions

Subcontracting offacility(Parent
Transferee(s):management,
Transaction
company’s
AEON Co., Mihama-ku,
Pure holding
6
security, cleaning, other than
199,054
ownership)companyLtd.
Chiba City
Concurrent construction work,business
Direct1.5
director(s): 2 and other services, transaction
Indirect 58.6
and bailment for
consumption

Bailment for
consumption*1

Transaction
amount(millions of
yen)

Item

Balance at
year-end(millions ofyen)

90,300
Deposits
from

3,000

affiliates

Return ofdeposits for
consumption*1

90,300Sales

13,810Parentcompany

MYCAL
Corp.

Chuo-ku,
Osaka City

Subcontracting ofBusinessfacilitytransaction(Parent
management,
Generalcompany’s
Transferee(s): security, cleaning,
ownership)
20,000 merchandise2
construction work,
Direct58.6
storeand other services, Transaction
Indirect─
other thanand leasing ofbusiness
offices, etc.
transaction

Receipt ofcompensation
money*2

54

Accounts
receivable─

Terms of transaction and policy on determination of terms of transaction, etc.
Pricing and other terms of transaction for relevant parties are the same as those for other parties who
are not related to the Company.
Notes:*1 Interest rates on deposits for consumption are decided rationally by considering market rates.
*2 Compensation money was received due to cancellation of a real estate lease agreement.
*3 Consumption taxes, etc. are not included the transaction amount, but are included in thebalance at year-end.

―23―

1,364

─

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(2) Companies, etc. who share the same parent company with the reporting company and subsidiaries,
etc. of other affiliates of the reporting company
Name ofcompanies, etc.

Type

Address(Parent
Capitalcompany’s)
Business lines
ownership of(millions/ occupation
voting rights,
of yen)etc. (%)

Nature of relationship
Concurrent
directorship,etc.

Businessrelationship

Concurrent
director(s): 1

Subcontractin
g of facility
management,
security,cleaning,
construction
work, andother services

Businesstransaction

Subcontractin
g of facility
management,
security,cleaning,
construction
work, andother services

Businesstransaction

Subcontractin
g of facility
management,
security,cleaning,
construction
work, andother services

Businesstransaction

Company
who shares
the sameparentAEON
RETAIL
Co., Ltd.

Mihama-ku,
Chiba City

General50,000 merchandise
store

None

company

Company
who shares
the sameparentAEON
Mihama-ku,
MALL Co.,
Chiba CityLtd.

16,662

Shopping
center /Insurance
agent(Ownership)
Concurrent
Direct 0.3
director(s): 1
Indirect ─

company

Company
who shares
the sameparentAEON
Hakata-ku,
KYUSHU
Fukuoka City
Co., Ltd.

General(Ownership)
3,144 merchandise
Direct 0.2
store
Indirect ──company

Company
who shares
the sameparentRyukyuShimajiri-gun,Jusco Co.,
Okinawa
Ltd.

General
360 merchandise
store

Nature of transactions

─

None

company

Subcontractin
g of facility
management,
security,cleaning,
construction
work, andother services

Businesstransaction

Sales

Sales

Sales

Sales

Transaction
amount(millions of
yen)

Item

Balance at
year-end(millionsof yen)Notes
receivable

167

Accounts
receivable

4,495

Accounts
receivable

918

Notes
receivable

137

Accounts
receivable

552

Notes
receivable

101

Accounts
receivable

654

40,748

7,949

5,931

1,928

Terms of transaction and policy on determination of terms of transaction, etc.
Pricing and other terms of transaction for relevant parties are the same as those for other parties who
are not related to the Company.
Note: Consumption taxes, etc. are not included in the transaction amount, but are included in thebalance at year-end.
2. Notes on parent companies or important affiliates(1) Parent company information
AEON Co., Ltd. (Listed on the Tokyo Stock Exchange)
MYCAL Corp. (Not listed)(2) Summarized financial information of important affiliates
None

―24―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(Per share information)
FY02/2009(from March 1, 2008 to February 28, 2009)

FY02/2010(from March 1, 2009 to February 28, 2010)

Net assets per share¥669.28 Net assets per share¥787.84

Net income per share¥122.92 Net income per share¥137.79

Net income per share (diluted)¥122.83 Net income per share (diluted)¥137.58

Notes: Basis for calculation
1. Net assets per share
FY02/2009
As of February 28, 2009

FY02/2010
As of February 28, 2010

Total net assets (millions of yen)

28,07931,364

Net assets attributable to common stock(millions of yen)

26,55031,253

Subscription rights

72

110

Minority interests

1,456

－

41,40041,400

Amount of common stock in treasury(thousands of shares)

1,729

1,729

Amount of common stock used to calculate
net assets per share (thousands of shares)

39,67039,670

Breakdown of difference (millions of yen)Amount of common(thousands of shares)

stock

outstanding

2. Net income per share and net income per share (diluted)
FY02/2009(from March 1, 2008 to
February 28, 2009)

FY02/2010(from March 1, 2009 to
February 28, 2010)

Net income (millions of yen)

4,876

5,466

Net income attributable to common stock(millions of yen)

4,876

5,466

Average amount of common stock
outstanding during the year (thousands ofshares)39,66939,66929

60

Breakdown of increase in amount ofcommon stock used to calculate net assets
per share (diluted) (thousands of shares)
Subscription rights―25―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(Significant Subsequent Events)
For the fiscal year ended February 28, 2010
Following the adoption of the resolutions at the Board of Directors meeting held on March 25,
2010, AEON DELIGHT on the same date entered into a merger agreement with CERTO in which
CERTO is the entity ceasing to exist and AEON DELIGHT is the surviving entity. Details of themerger are shown below.
1. Company profiles(1) Names of the companies concerned and their businesses
a. Surviving company
Name
AEON DELIGHT CO., LTD.
Principal BusinessComprehensive building maintenance services
b. Outline of the merged company (as of February 20, 2009)
Name
CERTO Corporation
Principal BusinessSupplies / materials provision, vending machine operation services
Capital1,222 million yen
Operating Revenues
70,745 million yen
Net Income
2,171 million yen
Total Assets
29,144 million yen
Net Assets
14,977 million yen(2) Legal form of the business combination and corporate name after the merger
The merger will be effected by the merger of CERTO with and into AEON DELIGHT, with
AEON DELIGHT as the surviving entity. The corporate name after the merger will be AEON
DELIGHT CO., LTD.
(3) Outline of the transaction, including its purpose
a. Purpose of the transaction
The Group takes up the mission to meet the growing social demands for greater safety andcomfort as a leading company in the building maintenance industry, with respect to theManagement Principle of “pursuing the creation of ‘environmental value’ for its customers.” The
Group offers its services to buildings for a wide range of purposes including large-scalecommercial complexes.
CERTO takes up the mission “to deliver ‘certain’ and reliable qualities eternally” in order tomeet customers’ demands in changing societies. CERTO provides office supplies andpackaging materials to businesses and offers vending machine operation services.
The two companies have agreed to integrate their management resources in order to create a“comprehensive facility management service (FMS) business” that aims to meet diverse
customer demands and customizes facility management in the best interest of people who workin or visit buildings under its management. At the same time, they will further the AEON Group“DNA” which is embodied in the “customer focused to the first degree” principle.
With these missions in mind, as a pioneer in the comprehensive FMS business, the new
AEON Delight aims to achieve a scale and profitability equivalent to that of global competitors
by tapping into a greater number of marketing opportunities created through the merger
synergies, all-in-one services made possible by the group’s extensive network, and highproductivity backed by knowledge in service science.
b. Outline of the transaction- Date of the merger
September 1, 2010
- Structure of the merger
The Merger will be effected by the merger of CERTO with and into AEON DELIGHT, with
AEON DELIGHT as the surviving entity.
- The number of shares of the surviving entity to be issued in exchange for one share of theentity ceasing to exist, or details of shareholding―26―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

AEON DELIGHT will issue 1.30 shares of its common stock in exchange for every CERTO
common share.
2. Outline of Accounting Treatment
The Merger will be treated as an incorporation transaction under common authority under the
Accounting Standard for Business Combinations. As such, the accounting statement shall bemade under the provisions of Item 247 of the “Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10).
Thus, there will be no “goodwill” incurred.
Notes other than those shown above shall be omitted here, as they are deemed as having little
importance.

―27―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

5. Financial Statements, etc.
(1) Balance Sheet
AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Deposit of subsidiaries and affiliates
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Machinary for area control
Accumulated depreciation
Machinary for area control, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Right of trademark
SoftwareTelephone subscription right
Right of using facilities
Other
Total intangible assets

FY02/2009―28―（Millions of yen）
FY02/2010

4,466
1,415
15,569
7
985
351
1,161
2,500
389
65
-184
26,726

4,362
471
14,589
8
1,040
425
935
3,000
404
562
-119
25,680

998
-582
415
4,329
-4,028
301
52
-28
23
2,316
-1,550
765
280
―
―
―
13
1,799

1,280
-473
806
4,136
-3,863
273
2
-1
1
2,131
-1,429
702
89
22
-4
17
12
1,902

11,705
23
532
73
0
8
12,345

11,026
20
522
73
―
1
11,645

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report（Millions of yen）
FY02/2010

FY02/2009
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital
Investments in capital of subsidiaries and affiliates
Long-term loans receivable
Long-term loans receivable from subsidiaries and affiliates
Claims provable in bankruptcy, claims provable inrehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable-trade
Accounts payable-trade
Liquidation of claims credit loans payable
Lease obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for bonuses
Provision for reward of business performance
Provision for directors' bonuses
Other
Total current liabilities
Noncurrent liabilities
Lease obligations
Deferred tax liabilities
Other
Total noncurrent liabilities
Total liabilities

―29―

1,060
2,621
1
72
40
28

1,376
4,252
1
72
39
12

92

63

94

96

75
633
235
-148
4,808
18,95345,680

―
634
468
-119
6,901
20,44946,130

2,229
8,540
1,500
―
2,275
129
2,229
536
64
502
700
―
91
47
18,848

1,473
7,669
―
5
1,882
85
2,008
322
71
425
604
76
―
141
14,765――152
152
19,000

14
185
148
347
15,113

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

FY02/2009
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total earned surpluses
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets―30―（Millions of yen）
FY02/2010

3,238

3,238

2,963
641
3,605

2,963
641
3,605

395

395

7,120
12,734
20,250-461
26,631

7,120
16,84924,365-461
30,746-24-24
72
26,67945,680159
159
110
31,016
46,130AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(2) Statement of Income
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Interest on securities
Dividends income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of company housing
Loss on retirement of noncurrent assets
Compensation for accident expenses
Adjustment of labor insurance expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of provision for retirement benefits
Reversal of allowance for doubtful accounts
Compensation income
Income for insurance
Adjustment of lease profit
Other
Total extraordinary income
Extraordinary loss
Loss on valuation of stocks of subsidiaries and affiliates
Impairment loss
Loss on valuation of investment securities
Other
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income―31―(Millions of yen)
FY02/2009
FY02/2010
138,766
126,528
119,799
108,608
18,966
17,920
9,452
8,695
9,514
9,224
46
0
85
10
142

21
0
137
7
166

47
54
42
45
28
7
226
9,430

3
30
35
11
13
20
116
9,274

―
―
―
38
7
―
45

290
78
54
―
―
1
423

―
―
913
15
929
8,546
4,023
-285
3,737
4,808

254
190
―
38
483
9,214
3,788
359
4,147
5,067

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report( 3 ) Statements of Changes in Shareholders’ Equity
Shareholders' equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Legal capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Other capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Total capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Retained earnings
Legal retained earnings
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Other retained earnings
General reserve
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Retained earnings brought forward
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period―32―(Millions of yen)
FY02/2009
FY02/2010

3,238

3,238

―
3,238

―
3,238

2,963

2,963

―
2,963

―
2,963

641

641

―
641

―
641

3,605

3,605

―
3,605

―
3,605

395

395

―
395

―
395

7,120

7,120

―
7,120

―
7,120

8,718

12,734

-793
4,808
4,015
12,734

-952
5,067
4,114
16,849

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(Millions of yen)
FY02/2010

FY02/2009
Total retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments
Valuation difference on available-for-sale securities

16,234

20,250

-793
4,808
4,015
20,250

-952
5,067
4,114
24,365

-460

-461

0
0
-461

0
0
-461

22,617

26,631

-793
4,808
0
4,014
26,631

-952
5,067
0
4,114
30,746-25-24

Changes of items during the period
Net changes of items other than shareholders' equity

0184

Total changes of items during the period

0

184

-24

159

-25

-24

0

184

0

184

-24

159

―

72

72

38

72

38

72

110

22,591

26,679Balance at the end of previous period

Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Subscription rights to shares
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period―33―

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report

FY02/2009
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

―34―

-793
4,808
0
73
4,087
26,679(Millions of yen)
FY02/2010
-952
5,067
0
222
4,337
31,016

AEON DELIGHT CO., LTD. (9787) FY02/2010 Summary Report(4) Note on the going concern assumption: None
Notes on Individual Financial Statement are insignificant, therefore skipped.
6. Other Remarks(1) Change in representative director(2) Management reshuffles (scheduled on May 20, 2010)
1. Candidates for new directors (present position)
Director Tajiro Yashi(General Manager of Group Sales Division)
Director Naoto Haga
(CERTO President)
Director Masakazu Yano (CERTO Director, GM of Sales Division)
Director Yutaka Shibayama (CERTO Director, GM of Finance and Accounting Dept.)
Director Osamu Matsui(CERTO Director, GM of Personnel and General Affairs Dept.)
Director Nowaki Harada(CERTO Director, GM of Commodities Control Dept.)
Director Nobukazu Tanaka (CERTO GM of Sales Control Dept. in Sales Division)
Director Akira Sugihara(CERTO GM of Operation Control Dept. in Sales Division)
2. Retiring directors (present position)
Director Masakazu Miyoshi (Vice President, Operation designing and Group Sales in charge)
Director Fumio Nakamura (Director, International Administrator)
Director Takao Kato
(Director, Senior Advisor)
Director Hiroyuki Fujita(Director, Deputy GM of Sales Division)
3. Candidates for new auditor
Full-time auditor Masakazu Miyoshi (Vice President, Operation designing and Group Sales incharge)AuditorHitoshi Kanda(CERTO Full-time auditor)
4. Retiring auditor
Full-time auditor
AuditorTadayuki Morishige
Muneo Nishihara―35―