Facility management for a better tomorrow

For our 50 years of existence, the AEON delight Group has been providing safety and security to facilities and their surrounding environments.

We will continue to solve social issues through facility management and grow as an environmental value-creating company

that helps create a society full of joy.

Management Principle

We Pursue the Creation of "Environmental Value" for our Customers and for the Local Communities.

The environmental value we consider includes all the values in the following; value in the business environment of the corporation,

value in the usage environment of the customers of the corporation,

value in the workplace environment employees work in and value in the local community.

Table of contents/Editorial policy

• Contents

By creating environmental value, we strive to provide "delight" such as joy, shine and richness of mind. To achieve that goal, we constantly aim to improve safety, security,

cleanliness and comfort, and keep stepping forward towards "the future with a dream."

Delight

Safety Comfort

Human Environment

• Editorial policy

• Editorial policy

The AEON delight Report 2022 is published to inform sharehold- ers, investors, and all other stakeholders of the Group's business activities, growth strategies, and future outlook based on our Management Principle.

In preparing this report, we referred to the International Integrated Framework of the International Integrated Reporting Council (IIRC) and the GRI Sustainability Reporting Standards, focusing on information that we deemed important from the standpoint of medium- and long-term corporate value creation.

• Organization

AEON DELIGHT CO., LTD. and AEON delight Group

• Period

March 1, 2021 - February 28, 2022

＊Some sections include information for March 2022 and beyond.

• Forward-lookingstatements

This report contains projections and forward-looking statements regarding our Group's future plans, strategies and performance. These statements are based not only on historical facts, but also on assumptions made with information currently available to the company. As such, actual results may differ from projections.

We manage all facility costs, from land, buildings, equipment, security, and cleaning, and develop and implement budget plans for our customers.

Workplaces

We propose both soft and hard solutions that transform office spaces as well as work habits and processes.

Maintenance Plan Development and Management

We comprehensively manage and optimize facility energy use, and offer energy-saving proposals that optimize life-cycle costs by introducing energy-efficient equipment.

Business Continuity Plan (BCP)

We formulate plans that enable customers to continue operating and promptly restore facilities in the event of a disaster, minimizing impact on corporate activities.

Partner Management

(Evaluation & Guidance)

Business Fields

The AEON delight Group is a facility management group

that offers various solutions for facilities and surrounding environments in response to the challenges faced by customers in Japan, China, and the ASEAN region.

• Operations Services

Optimally operate facilities

Facility Management

We provide optimal operation, inspection, mainte- nance, and servicing tailored to each facility, and propose an Open Network System that reduces management and operating costs.

Building Construction

We provide comprehensive support (planning, layout, design, construction, and supervision) for everything from restoration work to renovation, interior work, and extensive maintenance.

Security

We offer a wide range of services from facility security to traffic guidance and event security, providing unique plans that incorporate advanced equipment.

Materials

Vending Machines

We contribute to improved profitability and user satisfaction with high value-added vending machines and product lineups tailored to customer needs.

Support

For office buildings and public facilities, we propose unique solutions to address various issues that our customers face, from major disasters and labor shortages to reducing environmental impact and preventing the spread of infectious diseases .In addition, we provide services that enable our customers to establish sustainable business models and further grow their businesses.

03

For commercial facilities, we help customers build facilities and systems that enable shoppers to safely, securely, and comfortably enjoy their shopping experience.In addition, we help create commercial facilities that are closely connected to local communities by helping our customers prepare business continuity plans, address labor shortages, and reduce environmental impact.

Hospitals and research facilities have higher sanitation requirements compared to other facilities. To address this, we provide optimal solutions that meet the specific needs of each facility, ranging from highly sanitary environments achieved through infection control to robust security environments using advanced disaster prevention equipment.

For factories and warehouses, we support a variety of outsourc- ing needs aimed at improving management and operation efficiency, including energy savings through facility man- agement. In addition, we propose preparation solutions that enable facilities to fulfill their production and supply roles in the event of a major disaster by ensuring continued operation and rapid recovery.

We provide various materials such as packaging and sanitary materials for stores, and propose environmentally friendly materials as well as ways to reduce total cost and streamline material ordering opera- tions.

Cleaning

We offer cleaning services that not only maintain aesthetics but also extend the life of facilities, including Hygiene Control Cleaning and New Standard Cleaning services designed to enhance infection control.

We offer a variety of services to meet the outsourc- ing needs of customers for managing and operating their facilities and surrounding areas, including land- scaping, catering, cafeteria operations, business travel arrangements, and rental conference spaces.

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Global Network

Aiming to become Asia's No. 1 facility management company

We have standardized the technology and quality control methods we have developed over the past 50 years in Japan.

With the aim of becoming Asia's No. 1 facility management company,

we are extending the AEON delight brand from Japan to China and ASEAN countries.

Our Strengths

Providing the best facility solutions as a group of experts for facility management

The strength of the AEON delight Group rests in our ability to provide optimal solutions to customer issues through our diverse array of facility-related services and our network of expert personnel in Japan and overseas.

Japan

China

Our Strengths

Advanced expertise in Facility Management

~Continuous training of professional personnel with both technical and human capabilities~

• Over 20,000 qualified employees

Our Group employs over 20,000 qualified personnel, ranging from essential personnel for facility maintenance to those with knowledge and skills related to reducing environmental impact (see p. 40). These employees are deployed to our more than 500 service locations throughout Japan. We maintain a network of approximately 5,000 partners to uniformly provide highly specialized services throughout Japan.

• Unique training facilities held within the Group

We have our own training facility, AEON delight Academy Nagahama, where employees can gain knowledge and skills through practical training and lectures in a simulated facility environment. In addition to technical capabilities, we are constantly developing professional personnel who can put themselves in the customer's shoes and provide hospitality. We are committed to providing world-class service quality with our technical and human capabilities.

• Technical contests aimed at improving quality of operations

Starting in FY2019, we have been hosting technology contests to encourage experts in various fields to hone their technical capabilities and further develop ideas generated in the field into shared assets for the Group. In addition to our domestic and overseas group companies in the facilities management, security, and cleaning businesses, we also have partner companies participating in the contest.

Through these technical contests, we strive to improve the expertise of not only our own company but also our overall service network.

Community crisis management support

We have two AD Solution Centers (ADSC) in Japan, one in Osaka City and the other in Komaki City, Aichi Prefecture (AEON Komaki Crisis Management Center), which serve as our core crisis management centers for disaster prevention. ADSC constantly collects and analyzes disaster information and remotely monitors our facilities under management for abnormalities in order to prepare for disaster risks. In the event of disasters such as earthquakes, floods, and major power outages, we handle the situation as an organization with the ADSC in charge of collecting information. To date, we have supported our customers' crisis management by restoring damaged facilities, dispatching support personnel, coordinating with relevant ministries and agencies, and procuring disaster response equipment and supplies, in an effort to minimize damage and restore facilities quickly (see p. 30).

In addition, our new headquarters, which began operations in September 2021, is home to the Kanto Regional Office's Customer Support Center (CSC)*, which can function as a substitute for the ADSC. By sharing systems and data among our three locations in Osaka, Komaki, and Tokyo, and by establishing a backup system for crisis management functions, we have built a system that can demonstrate resilience in the event of a major, widespread disaster.

In the event of a disaster, one of the eight nationwide CSCs located close to the disaster area will quickly gather information and work toward early recovery and reconstruction of the affected area by carrying out disaster response efforts that leverage field expertise in cooperation with the ADSC.

• Customer Support Center (CSC)
  We have Customer Support Centers established under our eight regional offices in Japan. These centers provide remote support for facility management operations through various systems and sensors, and also gather customer requests and information on each facility.

Training facility AEON delight Academy Nagahama

Third AEON delight Skill Contest [Equipment Division]

AD Solution Center

Ability to transform in response to changes in the environment

• COVID-19response

Amid the COVID-19 pandemic, we continued to provide a safe and secure environment for people using our facilities by implementing a variety of infection prevention measures in response to the changing environment.

By leveraging our network and procurement capabilities in the materials business, we were able to provide a stable supply of infection prevention materials such as alcohol dispensers, face masks for business use, and acrylic partitions from the early stages of the pandemic. In addition, by harnessing the expertise we accumulated through our hygiene control service, a cleaning service including infection control that we have developed and offered to healthcare facilities before the pandemic, we were able to develop our New Standard Cleaning service designed for the age of COVID-19, which we launched in September 2020. We provide a hygienic environment backed by scientific evidence in accordance with a cleaning procedure manual developed under the supervision of infection control experts. Moreover, we developed a Network CO2 Density Monitoring System with a manufacturer for the purpose of promoting ventilation in facilities, and began offering the system in April 2021. By visualizing CO2 density, we promote improved ventilation while fostering a sense of security for people using our facilities.

We continue to provide safe and secure facility environments even amid the pandemic by implementing various infection prevention measures.

• Digital transformation promotion initiatives

As the labor shortage in the facility management industry becomes increasingly severe, we are moving forward with digital transformation to promote area management*1, a new facility management concept. The remote support provided by the CSC has helped us reduce resident facility managers, and we are shifting from conventional resident-based individual facility management to a multiple facility management system that mainly consists of patrolling by area. At the same time, the data collected and accumulated from inside and outside facilities are processed into valuable information and shared to help solve customer issues. We continue to update the information with the AEON delight Platform*2, which also functions as a shared data collaboration platform for our entire service network, including group companies and partner companies.

Through these efforts, we are transforming our business into a sustainable model that adapts to changes in the environment (see p. 16).

*1: Area management refers to a facility management model that efficiently manages multiple facilities in an area through remote management.

*2: AEON delight Platform is an information collaboration platform that processes data collected and accumulated from inside and outside facilities into valuable information that helps solve customer issues and shares it throughout the entire service network comprising group companies and partner companies.

WEB

New Standard Cleaning service launched in September 2020 as a new standard for cleaning in the age of COVID. Cleaning services are carried out by staff who have completed specialized training, and quality is measured and quantified through monitoring.

Improving ventilation by installing a network-enabled CO2 density monitoring system

AEON delight's measures taken against COVID-19

• https://www.aeondelight.co.jp/english/covid19/