Financial Results for the Three Months EndedMay 31, 2023

AEON DELIGHT CO., LTD.
July 11, 2023

Contents

1

Financial Report for Q1 of FY2/24

2

Initiatives for Q2 Onward to Achieve the Full-year Target©2023 AEON Delight All Rights Reserved 2

Consolidated Statement of Income
Sales and profits increased due to expansion of market share within existing customers and newcustomer acquisition.
On the other hand, profitability declined due to the impact of rising labor costs, raw materials, andlogistics costs, leading to the lag behind the profit plan.

(100 million yen)

FY2/23 1Q(Ratio to sales)

FY2/24 1Q(Ratio to sales)

Net sales

717(100.0%)791(100.0%)73

110.2%

Gross profit

97(13.6%)

102(12.9%)

4104.9%

SG&A expenses

64(9.0%)67(8.6%)3

104.9%

Operating income

32(4.6%)34(4.4%)1105.0%Ordinary income

33(4.6%)34(4.4%)1105.7%

Net income
attributable toowners of parent

22(3.1%)22(2.9%)0102.4%

Difference

Percentagechange©2023 AEON Delight All Rights Reserved ３

Sales by Segment
Sales increased in all 7 businesses YoY. In the Construction work, sales increased substantially due to anincrease in contracts for various types of construction, including energy-saving construction work
associated with rising energy costs.

FY2/23 1Q

FY2/24 1Q

PercentagechangeFacilities
management

161

170

105.9%

Security services

119

127

106.5%

Cleaning services

165

174

105.4%

Construction work

102

133

130.2%

Materials/supplies
sourcing services

102

113

110.7%

Vending machineservices2123105.3%

Support services

44

48

108.8%

Total

717

791

110.2%(100 million yen)©2023 AEON Delight All Rights Reserved ４Profit by Segment
Profits increased in 4 businesses and decreased in 3 businesses.
Profits declined in Facilities management, Cleaning services, and Support services, mainly due to lower
profitability from higher labor and subcontracting costs.
PercentagechangeFY2/23 1Q

FY2/24 1Q

Facilities management

13.7

13.3

97.3%

Security services

7.3

8.3

113.5%

Cleaning services

16.8

14.5

86.3%

Construction work

6.9

10.8

156.9%

Materials/supplies
sourcing services

6.1

6.3

102.5%

Vending machineservices

2.0

2.5

124.1%

Support services

1.6

1.4

91.7%

Total54.6

57.4

105.1%(100 million yen)©2023 AEON Delight All Rights Reserved ５

Consolidated Balance Sheet(100 million yen)

Liabilities andnet assets

2023/22023/5Currentliabilities

4844862Fixedliabilities

2827▲0512513

1

Shareholder’sequity959947▲1110Total net assets

993985▲8▲7Total liabilities
and net assets

1,506

1,499

▲7Assets

2023/22023/5Difference

Current assets

1,295

1,277

▲17Tangible fixedassets

6468

3Intangible
fixed assets

6365

2Investments,
etc.

8287

5Fixed assets

210221

Total assets

1,506

1,499

Total
liabilities

Difference©2023 AEON Delight All Rights Reserved ６

Major Initiatives in FY2/24 Q1 ① Customer-oriented management
Promoted various initiatives set at the beginning of the period to expand market share.

Initiatives

Results・Through strengthening relationships with customers through accountmanagement, increased market share among customers by expanding the services

Further strengthen

provided and by contracting with the same customer to provide services toaccount sales

properties at other locations.
・Launched new services in a wide range of facilities, thanks to recognition of past
performance and expertise.

・Orders increased for energy-saving-related construction projects, where demand

Strengthen
construction works

is rising in line with higher energy costs.
・Expanded orders for various types of work through aggressive proposal ofrenovation and repair work for management properties.

©2023 AEON Delight All Rights Reserved ７

Major Initiatives in FY2/24 Q1 ② Promotion of DX-１
Added new functions to update the Aeon Delight Platform, a data linkage platform.
Streamlining sales activities and preventing opportunity losses.

Management andoperation
information of facility

AEON Delight Platform
Existing customers

Managed facilities

Solutions that
contribute to solving
issuesCollect and analyze various dataand process them into valuable
information

Additional functions
Customer
Information/Industry
Information

Account manager

・Transaction analysis tool byindustry/property use
・Tool to visualize theprogress of planned repairs

Potential customers©2023 AEON Delight All Rights Reserved ８

Major Initiatives in FY2/24 Q1 ② Promotion of DX-２
Developed the Area Management system and promoted transforming
facility management operations to build a sustainable business model.

● Development of "area management“
Labor-saving at 16 new facilities(289 facilities in total)
Reallocated more than 16 specialist personnel(cumulative total of 183)
*Area Management
A facility management model in which multiple facilities are managed
on an area-by-area basis, mainly through remote control and patrolservices.

● Reform of facility management operations
Utilization of digital devices enables automation ofroutine operations (facility inspections,preparation of reports, etc.) and visualization ofpower consumption
Introduced at 80 new facilities (251 facilities intotal)● DX of facility administration operations throughuse of cameras (top) and sensors (bottom)©2023 AEON Delight All Rights Reserved ９

Major Initiatives in FY2/24 Q1③ Group Management-1
Sales and profits increased for all domestic group companies due to the recovery inperformance of AEON DELIGHT CONNECT, a core company in the management ofsmall and medium-sized facilities, and AEON COMPASS, a travel-related business.

Company name

OutlineAEON DELIGHT
CONNECT

Significant increases in sales and profits due to the expansion of contracts fordaily cleaning and maintenance operations and construction works by apparelchains, restaurant chains, and convenience stores.

AEON COMPASS

Recovered performance by capturing the recovery in demand, such as
business trips and physical events.

Ask Maintenance

In April, we made Ask Maintenance, which mainly operates a cleaning business
in Kyushu, into a wholly owned subsidiary to expand the business base in
Kyushu and promote quality improvement and management efficiency in thefuture.
©2023 AEON Delight All Rights Reserved 10

Major Initiatives in FY2/24 Q1③ Group Management-2
Overseas, sales increased to 117.4% YoY, and operating income decreased to 86.4% YoY.
China: Sales increased as the business expanded steadily by expanding market share within customers anddeveloping new customers. On the other hand, profit decreased due to the impact of rising
personnel costs and other factors.
ASEAN: Higher sales in countries where we operate. On the other hand, profit decreased due to the impactof the rise in labor costs associated with the revision of the Employment Law in Malaysia.
(Net sales(Operating incomeChina/100 million yen)

MalaysiaVietnamIndonesia

Operating income/100 million yen)

10088475671

3.850

3.3

25042Net sales

Operating income0Net sales

FY2/23 1Q* Fiscal year of overseas businesses ends in December. Figures are simple totals of operating companies.

Operating income

FY2/24 1Q©2023 AEON Delight All Rights Reserved 11

Contents

1Financial Report for Q1 of FY2/24

2

Initiatives for Q2 Onward to Achieve the Full-year Target©2023 AEON Delight All Rights Reserved 12

Initiatives for Q2 Onward to Achieve the Full-year Target
Continue to work on measures to improve profitability amid ongoing pressure to strengthen
costs, while working to secure sales above target by strengthening sales

Items

Major initiatives

Increase sales

・Further increase orders for energy conservation-related work, such as LED
lighting and replacement of air conditioning and heat source equipment.
・Steadily implement planned repairs to maintain "safety and security" and"aesthetics" of facilities, and strengthen proposals for small-scale repairs.
・Execution of contracted large projects
・Expand share within existing customers and cultivate new customers throughaccount management.

Improve profitability

・Facilities management: Improve on-site efficiency
・Security services: Promote rationalization of unit prices through labor saving
and price negotiations through entry and closure management andsystemization of store closure operations.
・Cleaning services: Promote rationalization of unit prices by changing
specifications, etc.
・Materials/supplies sourcing services: Promote appropriate reflection of cost
increases in various materials in selling prices.

©2023 AEON Delight All Rights Reserved 13

Business Forecasts for FY2/24(100 million yen)

FY2/23 Results(Ratio to sales)

FY2/24 Forecasts(Ratio to sales)

Net sales

3,037(100.0%)

3,100(100.0%)

102.0%

Operating income

158(5.2%)

160(5.2%)

101.2%

Ordinary income

160(5.3%)

160(5.2%)

100.0%Net income attributable toowners of parents

101(3.3%)

104(3.3%)

102.4%

Percentage change©2023 AEON Delight All Rights Reserved 14

Progress in KPIs (Key Performance Indicators) of the Medium-Term Management Plan

Basic Policy
Customeroriented
management

KPI (End-FY2/24)

FY2/24 Q1

End-FY2/22

Ratio of sales inside/outside the AEON Group 60%:40%

62.6%：37.4%

64.4%：35.6%

Operating income margin: 3.9%*1
ROE: －％*2

Operating income margin: 5.0%*1
ROE 11.7％

289 facilities

178 facilities

183 staffs

115 staffs

ー*2Started improvement of businessprocesses in the head officedivisionsー*2

52.1 billion yen

9.5％*1

7.8％*1

ー*2

Started support from our financial
and accounting department for all
domestic group companies(total)Operating income margin of 6.0%*1,
sustaining the standard of ROE 12% (full-year) throughincreasing operating income
Number of facilities introducing area management: 360

Promotion of(total)

DX
Reduction in number of on-site staff through area
management: 180 (total)
Allocation of 20% of staffs in the headquarters to front
office by consolidating head office functions
Net sales of 65.0 billion yen consolidated with groupcompanies in JapanGroup
management

Net sales ratio of Asia businesses over 8.0%*1(Former Revenue Recognition Standard)
Shift to shared services for domestic group finance andaccounting departments (full-year)

Items in blue indicate improvements.
*1 Calculation based on the former revenue recognition standard*2 Renewed for the full year©2023 AEON Delight All Rights Reserved 15

If you have any questions or comments, please contact us below.
■ These materials contain statements about forecasts and estimates relating to the future plans, strategies, andperformance of AEON DELIGHT.
These statements are based not only on past performance, but also on assumptions based on information currently
available to the company. For this reason, please note that the actual performance may differ from our estimates.
■ The information contained in these materials has been prepared by the following methods if not specifically statedotherwise.
◇ All statements are based on consolidated results◇ Figures are rounded down to the nearest 100 million yen.
*Figures on page 5, 11 are rounded down to the nearest 10 million yen.
◇ Percentages have been rounded off to one decimal place
IR Contact : PR and IR GroupTEL 03-6895-3892

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

Please contact us on our website.
https://www.aeondelight.co.jp

Based on information available up to the date of publication (July 11, 2023)
These forecasts have been prepared and are subject to change due to various factors going forward.