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Message from the President

Aiming to establish a comprehensive FMS business originating from the creation of

Ippei NakayamaPresident & CEO August 2016

Thank you very much for your constant attention and support to us. Here I'll introduce our mid-term management plan for the period from February of 2018 to 2020, as well as the strategic projects for this current term.

Management Background

In Japan, where the shortage of labor forces has gotten fundamental in the corporation structure in reflecting on the recent labor demography, many enterprises tend more and more to leave their indirect operations, such as the management and operation of facilities, to the outsourcing contractors in the aim to concentrate the management resources to the main target business. Likewise in China and ASEAN countries, the Facility Management (FM) market has been growing bigger and bigger according to the development of social infrastructures and the progress of urbanization.
Under such a circumstance, AEON group has been getting ready for the development of Integrated Facility Management (IFM) business in Asia, in which we set a high value on the contribution to the growth of the clients by providing the most appropriate service, as a strategic partner, in the area of facility management and operation. In addition to that, we've approached the renovation of the current business models with a help of technologies such as sensor system, IoT, and robotics, as we have already applied to our own business.

Mid-term business plan (for the period from February 2018 to February 2020)

In response to the increasing need for the outsourcing of indirect operation among the global competitive enterprises, as well as the growth of FM market in China and ASEAN countries, AEON groups set a goal on the expansion of IFM business in Asia. Especially setting the sight on China, the biggest Asian market, we've just established a new company, "AEON DELIGHT (Shanghai) Corporative Management Co., Ltd" (AD Shanghai) in Shanghai where many enterprises expand their business from overseas including Japan and has started to operate since April in 2017. Based on this, we'll propose the IFM services to Japanese enterprises, as well as European and US enterprises.
We'll attempt to improve our services with a help of technologies as well. And we'll also make a full use of the big data collected from the equipment and sensor systems, in benefit of the open networking, so as to contribute to the improvement of the values of the facilities as well as the high efficiency to manage them.
With these 3 key points -IFM, Asia, and technologies, we'll aim to become a globally competitive IFM enterprise from Japan.

  • The numerical target for February 2020.
    We set a goal to achieve the total sales of 360 billion JPY in February in 2020 (122.1 % up in comparison with the same month of 2017), by means of the business expansion of IFM and the development in Asian market.
    In the anticipation of the possible increase of the material costs and labor expenses, we'll improve the profitability with the labor saving and efficient operations thanks to the application of technologies. We'll also invest actively on the recruitment required for the enhancement of personnel's training and growth.
    Under these strategies, we'll accomplish 22 billion JPY for the operating profit for February in 2020 (127.5% up in comparison with the same month of 2017) and 12.8 billion JPY for net income (125.0% increase, as above) attributable to the stock holders of AEON groups.

Strategy for February 2018

  • Strategies by regions
    1. Japan
    We'll strengthen the business schemes by categories, such as hospitals, hotels, and offices. By proposing more accurate and specific services designated to each facility, we'll accelerate the expansion of consignments business.
    Especially we'll challenge the expansion of the consignment business of various constructions, such as the remodeling of commercial complexes and the office rearrangement. Recently, the demands for the constructions for the commercial complexes are climbing up, due to the frequent turnovers of tenant shops in order to attract more customers. Last year, we enhanced our design and architecture departments so that we can provide the overall support throughout the process of the shop replacement. With more enhancement of supplies system, we'll enforce the consignment construction more in this current term.

    2. China
    While operating IFM consulting business in AD Shanghai, we'll expand more consignment business in our top 5 markets (*) with a help of our two key companies, AEON Delight Jiangsu Comprehensive Facility Management Service Co., Ltd (AD Jiangsu) and Wuhan Xiaozhu Property Management Co., Ltd. AD Jiangsu will also continue to focus on the acquisition of FM business in the regions of New City High Speed Rail Project, while expanding the catering business in Wuhan Xiaozhu Property.
    (*) our top 5 markets:
    1) High-middle residence 2) High-middle shopping malls 3) Nursery homes for elderlies, hospitals, and other welfare facilities 4) High-end factories 5) Transportation infrastructure

    3. ASEAN countries
    In Malaysia, we'll continue to expand the consignment business of the cleaning service and energy saving construction for the commercial complexes, which has been stable to date, and will focus on the expansion in a biggest market of IFM by the permanent facility management. In Vietnam, while improving the quality of business, such as facility management, cleaning and security services, we'll launch the consignment business of overall integrated management.
  • Target values for February 2018
    Throughout those strategies mentioned above, we'll accomplish 305 billion JPY for total sales (103.5% up in comparison with the previous year), 18 billion JPY for operating profit (104.3 % up as well), 18 billion JPY for ordinary profit (103.6% up as well) and 10.7 billion JPY for the net profit of the month (104.5% up as well), which will be attributable to our stock holders of AEON groups.

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