Aeon Delight : Supplementary Information on the Financial Results for the Fiscal Year Ended February 29, 2024

Financial Results for the Fiscal Year Ended February 29, 2024

AEON DELIGHT CO., LTD.

Kazumasa Hamada, President and CEO, Group CEO

April 9, 2024

Contents

1 Financial Report for FY2/24

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Consolidated Statements of Income

Sales increased due to market share expansion among existing customers and the new customer acquisition. However, operating income and ordinary income declined, as the increase in gross profit was not enough to absorb the rise in SG&A expenses, mainly due to the impact of the Cleaning business, whose profitability declined significantly due to higher labor costs.

(100 million yen)

FY2/23	FY2/24
(Ratio to sales)	(Ratio to sales)

Percentage

Difference change

Net sales

3,037

Gross profit	414

(100.0%)

(13.6%)

3,248

426

(100.0%) 210 106.9%

(13.1%) 11 102.8%

SG&A expenses	256
Operating income	158
Ordinary income	160
Net income
attributable to	101
owners of parent

(8.4%)

(5.2%)

(5.3%)

(3.3%)

273

152

154

107

(8.4%) 17 106.8%

(4.7%) ▲5 96.3%

(4.8%)

▲5

96.7%

(3.3%) 5 105.5%

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(100 million yen)

Sales by Segment

Sales increased in all 7 segments. Double-digit growth in the Construction work segment, which expanded contracting for energy-saving-related construction, and the Materials/supplies sourcing services segment, which expanded orders for various materials.

	FY2/23	FY2/24	Percentage change
Facilities	647	695	107.3%
management
Security services	494	509	102.9%
Cleaning services	683	704	103.1%
Construction work	520	592	113.7%

Materials/supplies sourcing services

Vending machine services

415	463	111.5%
94	96	101.6%

Support services	180	188	104.1%
Total	3,037	3,248	106.9%

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Profit by Segment

Profits increased in 5 segments and decreased in 2 segments.

Profitability declined in the Security services and Cleaning services segments due to increases in outsourcing costs and personnel costs and profit declined.

						(100 million yen)
			FY2/23	FY2/24		Percentage change
		Facilities management	58.1	59.1		101.8%
		Security services	32.7	31.0		94.8%
		Cleaning services	70.1	52.7		75.2%
		Construction work	40.8	53.2		130.4%
		Materials/supplies	19.9	23.2		116.2%
		sourcing services
		Vending machine	10.8	12.9		119.1%
		services
		Support services	4.6	5.4		117.8%
		Total	242.3	237.8		100.2%
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Consolidated Balance Sheet

Assets	Feb. 2023	Feb. 2024	Difference

Liabilities and net assets

Feb. 2023

(100 million yen)

Feb. 2024

Difference

Current assets	1,295	1,399	104
Property, plant	64	64	▲0
and equipment
Intangible	63	60	▲2
assets
Investments,	82	76	▲5
etc.
Noncurrent assets	210	202	▲8
Total assets	1,506	1,602	96

Current	484	534	50
liabilities
Noncurrent	28	25	▲2
liabilities
Total	512	560	48
liabilities
Shareholder's	959	999	39
equity
Total net assets	993	1,042	48
Total liabilities and	1,506	1,602	96
net assets

©2024 AEON Delight All Rights Reserved 6

Consolidated Statement of Cash Flows

			(100 million yen)
	Feb. 2023	Feb. 2024	Difference
Cash flows from	88	185	96
operating activities
Cash flows from	▲107	▲43	63
investing activities
Cash flows from	▲61	▲69	▲7
financing activities
Cash and cash
equivalents at the	599	677	77
end of year

(100 million yen)

Operating		Investing		Financing
CF		CF		CF

200

150

100

50

0

(50)

(100)

(150)

FY2/23FY2/24

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Major Initiatives in FY2/24 ① Customer-oriented management

Promoting various measures to increase our market share

Initiatives	Results
	・Through strengthening relationships with customers through account
Further strengthen	management, we increased the market share within existing customers by
expanding the services and by contracting with the same customer to provide
account sales	services to properties at other locations.
・Since our services and expertise are highly evaluated, we received new orders
	from a wide range of facilities.
Active proposals for	・Sales increased through active proposals for small-scale repairs
small-scale repairs led	led by on-site staffs to maintain and improve
by on-site staffs	"safety and security" , "functionality" and "aesthetics" of facilities.
Strengthen construction	・Orders increased for energy-saving-related construction projects, where demand
	is rising in line with higher energy costs.
works	・Orders for various types of work increased through aggressive proposals of
	renovation and repair work for facilities managed.

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Major Initiatives in FY2/24 ② Promotion of DX-1

Updated "AEON Delight Platform," a data linkage platform, by installing additional functions.

Streamlining sales activities and preventing opportunity losses.

Customer Support

Center

Facilities under

Management

Information on Facility

Management and

Operations

Aeon Delight

Platform

(Additional Implementation) ・Transaction analysis tool by

industry/property use ・Tool to visualize the

progress of planned repairs

Existing

customers

Account

Managers

Solutions that contribute to problem-

solving

Customer/Industry

Information

Collect, analyze, and process various

data into valuable information

Potential

customers

*Customer Support Center (CSC): The function is to remotely control multiple facilities by utilizing various systems/sensors, and also to consolidate customer facility information/requests in each region.

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Major Initiatives in FY2/24 ② Promotion of DX-2

To build a sustainable business model, we developed the Area Management

system and promoted the reform of facility management operations.

• Development of "Area Management" system
  Through the consolidation of some operations into the Customer Support Center and the use of digital devices to improve the efficiency of on-site operations

Labor-savingat 47 new facilities (cumulative 320 facilities in total) Creation and reallocation of about 52 personnel

(cumulative total of about 219)

*Area Management

A facility management model in which multiple facilities are managed on an area-by-area basis, mainly through remote control and patrol services.

• DX of facility administration operations through use of cameras (top) and sensors (bottom)

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