Medium-term Management Plan (FY2017 – 2019)
To become a globally competitive IFM company from Japan
In April 2017, AEON delight formulated a new Medium-term Management Plan for the period from FY2017 to FY2019.
In response to the changes in the business environment such as the declining working population in Japan and the progress in urbanization in emerging countries, the Plan sets out three basic policies on IFM (Integrated Facility Management), Asia and Technology.
We will reform our existing business models in line with these three basic policies and aim to become a globally competitive IFM company from Japan.
The numerical targets for FY2019, the final year of the Plan, are 360 billion JPY in net sales (23.0% increase compared to FY2016), 22 billion JPY in operating income (55.6% increase compared to FY2016) and 12.8 billion JPY in net income attributable to owners of the parent (80.5% increase compared to FY2016).
Three Basic Policies
1. IFM (Integrated Facility Management)
Many global companies are redirecting management resources to their core business with an aim to strengthen competitiveness, while outsourcing indirect operations to companies with high expertise so as to improve quality and reduce costs. Furthermore, there is a rising need among businesses for domestic demand to enhance the value of their facility, and for services that contribute to cost reduction.
Against this backdrop, AEON delight concluded its first IFM contract in December 2016 with a major Japanese pharmaceutical company expanding globally, and began providing integrated services ranging from management services related to the management of facilities to operation services. AEON delight will expand the provision of IFM in Japan and overseas by accurately capturing the outsourcing needs of companies, and thereby achieve further growth.
*IFM: Abbreviation of Integrated Facility Management, which aims to contribute to further the growth as a strategic partner of our customers, by providing optimal services related to facility management and operations.AEON delight's IFM
AEON delight is operating business in China and ASEAN countries where the market size of facility management is expanding in line with the development of social infrastructure and the progress in urbanization.
In particular, China is regarded as the largest market in Asia, and therefore AEON delight established a new company to serve as an IFM base in Shanghai, where many Japanese and foreign-affiliated companies are concentrated. From this base, we will make IFM proposals to Japanese companies as well as European and American global companies.
Furthermore, in addition to expanding business at two core companies, AEON DELIGHT (Jiangsu) and Wuhan Xiaozhu, we will promote M&A and build a network of affiliated companies.
In ASEAN countries, in addition to Malaysia and Vietnam, we have begun developing the business in countries such as Indonesia and Thailand. Bearing the characteristic of each country in mind, we look to expand business around alliances with local leading companies.
AEON delight will enhance the productivity of its services by utilizing ever-evolving technologies such as IoT and robots. Moreover, by grasping the status related to the safety and comfort of facilities, we will build a system to share timely information on the service contents being provided and their results.
Together with renewals for contracts and service specifications, we will build a new facility management model.
In addition, we will not only improve efficiency in facility management but also contribute to making a facility more attractive by creating a network for equipment and sensors in the facility using an open mechanism and by utilizing the accumulated data.