aeon mall csr report report 2012 for the future · management system. management planning...

Sharinga sense of

livelyparticipation

1-5-1 Nakase, Mihama-ku,

Chiba-shi, Chiba 261-8539, Japan

TEL: +81-(43)-212-6348 FAX: +81-(43)-212-6779

http://www.aeonmall.comAEON MALL Co., Ltd. is ISO 14001 certi�ed, an international standard on environmental management system.

Management Planning Department

AEON MALL CSR REPORT

Report 2012 for the Future

　　B r i n g i n g o u r l i n k e d t h o u g h t s i n t o s h a p e

Basic Philosophy

Customer First

Along with our partners, we will continue in our endeavors to create towns filled with vitality, to enrich the lives of their people.

Management Philosophy

AEON MALL will create "Towns with Vitality."

Corporate Slogan

I N D E X

AEON MALL is a member of "AEON".As a dedicated shopping mall developer,

AEON MALL Co., Ltd. is contributing to the development of the regional society and the improvement of culture

through the development of large-scale, complex shopping malls and administrative operations.

AEON Basic PrinciplesAEON abides by the unchanging principles of

"pursuing peace, respecting humanity andcontributing to local communities, centered on customers."

The "AEON Commitment" was established to help usimplement these principles and to guide us

in our practice of the Customer-First philosophy.

Peace

People Community

The Customer

AEON CommitmentWe hope to create a future of limitless promise

by transforming daily life through our open, dynamic approach.

Looking towards further growthAs a dedicated commercial developer, our company

undertakes development and management of shop-ping malls. Over the next few years, we are planning many new openings both domestically and overseas and coupled with the integration of developer functions of the group companies will vastly expand the number of shopping malls.

Although there are many people who see that the development of large-scale commercial facilities domestically has reached the point of saturation, our company will continue to actively promote the opening of shopping malls. However, we plan not only to increase the number of shopping malls but to enable enjoyment by the so-called "Grand Generation" of senior citizens through the building of new shopping malls where people can experience activities other than just shopping.

Overseas, we will earnestly further the opening of shopping malls in China and ASEAN, areas of tremen-dous growth. Although it is a market where companies worldwide are fighting for business chances, we will use our advantage of being close, in both distance and culture, to construct a vantage of being called "AEON MALL is Number One for commercial developers".To the shopping malls that keep evolving

Although 19 of our shopping malls received damage to parts of the buildings and facilities during the Great East Japan Earthquake of March 2011, we were able to provide some help towards the reconstruction of the region by quickly restarting service centering of the anchor store "AEON". I would like to sincerely offer thanks to those who have cooperated in these efforts, at the same time as willing the Group to continue offer-ing support activities to those in the disaster areas. Using this Earthquake as a lesson, our company has further strengthened the earthquake resistance and earthquake countermeasures for those shopping malls opened after the quake. Using these new standards,

we will make efforts to further increase the safety of shopping malls in each region.

Our commercial facilities are not at their best upon opening and do not gradually deteriorate with the pass-ing years. We aim for the facilities that are continually endorsed by our customers in the region by periodically introducing the latest trends and leading facilities. Even for our CSR activities described in this CSR Report, we should not believe that our current state is the best, but continually try to evolve them, verify the effects and deploy any excellent approaches to all our shopping malls.Together with employees who know the commer-cial business

One of the issues regarding the expansion of the number of shopping malls and the size of the company both domestically and overseas is personnel develop-ment. Although our company is attributed as a being a real-estate company, only someone with retail knowl-edge and the know-how of shopping mall businesses together with AEON's DNA will be able to fill the impor-tant roles of our business. Therefore, instead of recruit-ing personnel from outside the company, we will appoint employees with potential from within our com-pany regardless of gender, company history and nationality, and target in becoming a company where both the company and all the employees can grow together.

In this CSR Report "Report for the Future" we will report on the "town" which we are currently building and the "town" of the future. We look forward for your continued support and cooperation into the future.

Soichi OkazakiPresident and CEO

AEON MALL Co., Ltd.

Our Vision

Notice shall be given to information outside the reporting period in each case.Positions for the employees are as of 30th of June 2012.

Reporting Period: Feb. 21, 2011 - Feb. 20, 2012

ÆON MALL Tianjin Zhongbei (China)

ATOPICS P04

■ Feature 1 P06

The power of the "people" supporting town development.AEON MALL seen from the eyes of foreign employees P08

Expansion of town development which transcends borders P10

Discussion: AEON MALL’s Now and the Future P12

■ Feature 2 P14

The current situation in China and ASEAN

A town with vitalityWe define a town with vitality as a community that has gained a new and vibrant sense of energy following the creation of a new focal point for excitement, fun and lifestyle enhancement by AEON MALL.

Our partners Our partners are all stakeholders in town development, including local communities, government, non-profit organizations, tenant companies, suppliers, landowners and investors.

Sharing a sense of lively participation

AEON MALL’s Approaches to CSR P16

■ Realization of a workplace where everyone can work with energy and vigor P18

■ Promotion of environmental conservation from region to the planet P20

■ Implementation of a healthy and good partnership P24

■ Acquisition of Security Born from Ceaseless Pursuit of Safety P26

■ Continual contribution to the regional society P28

AEON MALL Data Collection P32

SR Accounting Report P34

The Third Opinion P35

Message from the Top

2 3Report 2012 for the Future Report 2012 for the Future

Asian area

：Shopping malls scheduled tio newly open

Grand Opening of AEON MALL Fukutsu (Fukuoka Prefecture)

Grand Opening of AEON MALL Tianjin Zhongbei, the 3rd shopping mall in China

Introduction of a new real-estate agency business "AEON Housing"

Unifying the group's mall-type commercial facility name to "AEON MALL"

Renewal of AEON MALL Kurashiki, towards the largest shopping mall in the Chugoku and Shikoku regions

2011 2012

TOP

ICS

On November 21, 2011, AEON unified the name of all the mall-type commercial facilities of which the integrated supermarket "AEON" is the anchor store of "AEON MALL" among those shopping malls under management by "AEON Hokkaido Co., Ltd.", "AEON Retail Co., Ltd." and "AEON Kyushu Co., Ltd.". As a result, a total of 122 sites of our Group including the 62 shopping malls under our company's management are now operating under the name "AEON MALL" (as of end of June, 2012). This is a part of the function integration between developers our group is promoting, and the purpose is to realize high growth and profitability by improving the brand awareness at the same time as pursuing scalable merit.

AEON MALL Kurashiki that opened in 1999 underwent a massive renewal of sales floor expansion in Autumn of 2011. In addition to about 95 newly introduced stores, 85 stores underwent relocation or remodeling with approx. 80% of the facility being renewed. Specialty stores saw an approx. 150% increase to 230 stores in comparison to the number before the renewal. Together with the solar panel installation of about 150m2 in total, wall greening was performed totaling about 500m2 including the use of reclaimed denim (about 100m2). With the placement of 4 high-speed rechargers for electric cars, the shopping mall made the massive evolution to an eco-mall.

"AEON Housing" is a business whereby a store is opened within the commercial facilities of AEON Group with the purpose of serving the various needs of customers living throughout the region in acting as an intermediary for the buying/selling/leasing of real estate. In November 2011, the first store opened as AEON Housing Shinonome Store, with a further opening as AEON Housing AEON MALL Funabashi in April 2012. Further introductions are planned throughout the Tokyo metropolis.

April 26, 2012 was the date in which "AEON MALL Fukutsu" was born in Fukutsu City, Fukuoka Prefecture. As part of the town development promoted by Fukutsu City and the Urban Renaissance Agency, the mall will act as an exchange hub for the region. With the cinema complex of TOHO Cinemas Fukutsu on either side of general merchandise store AEON Fukutsu, the three-layered open ceiling mall consists of 180 specialty stores including 47 local area stores and 33 stores completely new to Fukuoka Prefecture. In addition, as the first new mall opened since the Great East Japan Earthquake, we have made efforts to further strengthen the safety and security of our customers (Refer to page 27).

On April 28, 2012, AEON MALL Tianjin Zhongbei opened in a suburb of Tianjin City as the largest shopping mall of AEON Group China. Located approx. 15 km to the west from the center of Tianjin City, and situated in an accessible area surrounded by about 150 specialty stores of abundant variety and a parking area of greater than 3,700 cars, it is very much a fully-fledged mall-type facility. In addition, further development is expected with the scheduled opening of an underground station next door in 2012 and the development of high-rise apartment complexes. As a regionally positioned mall, an "AEON Hall" was introduced for use for exhibitions and recitals, for use by the people of the region, the first overseas introduction by our company, as well as the placement of a police station so all can enjoy shopping at the mall in safety.

TOPICS


Feature 1

Meeting scene (Cambodia)

The power of the "people" supporting town development

Of the mall businesses which our company is involved in, there are not many works that can be stylized by use of computers or manuals. The appropriate judgment and actions of the person-in-charge such as building trust with the region, partnership with specialty stores, everyday's safe management and administration are required. Additionally in conjunction with the proactive opening plans into China and ASEAN, the nurturing of personnel able to succeed on the global stage is becoming more urgent. In this special feature, we focus on those "People" who support town development and think about what we should be made aware of and what actions should be performed.

Local subsidiary employees(as of Jan. 21, 2012)

ChinaCambodiaVietnamIndiaIndonesiaTotal

1254

1212

144

With the aim of becoming a company where each and everyone is able to develop themselves by coping with speedy changes of the times.

Masayuki Tsuboya General Manager

Personnel Management Department

■ Required Change in Awareness ■The meaning of globalization

■ Sharing a single sense of values

Our Commitment for AEON Code of Conduct (Established in April 2003)

1. AEON people are always grateful to the many other individuals who provide support and help, never forgetting to act with humility.

2. AEON people value the trust of others more than anything else, always acting with integrity and sincerity in all situations.

3. AEON people actively seek out ways to exceed customer expectations.

4. AEON people continually challenge themselves to find new ways to accomplish the AEON ideals.

5. AEON people support local community growth, acting as good corporate citizens in serving society.

■ What is required now

Code-of-Conduct training (Beijing）

The poster for recruiting Japanese overseas students

Feature 1 : The power of the "people" supporting tow

n development

With the acceleration of store openings in China and ASEAN, the globalization of personnel and companies is becoming urgent. We are currently involved in efforts to cooperate with local subsidiary in each country.

A large number of our company's employees joined before the pursuit of earnest overseas deployment. Under the existing feelings, we would be unable to cope with the speedy changes, so to start off with, it is necessary to change the awareness of each and everyone. As part of this, we started a 3-year plan for all employees to receive overseas study programs during this period. Employees go to two countries over a week's period and visit depending on a theme determined by themselves with a report to be submitted upon reentry to Japan. Those who thought that China or the ASEAN countries were developing countries come back inspired by the progressive town functions and excellent local staff.

Of course, not all the employees will be transferred overseas. However, exchange between employees will become more active and with more opportunities in work relating to overseas occurring, it was decided to apply this program to all employees as an investment towards personnel development.

For a certain period of time following opening of a shopping mall overseas, employees are transferred from Japan. During this period, various know-how is passed on with the target being for the shopping mall to be managed and administrated solely by local staff. Therefore, the objective of personnel globalization is not necessarily the acquisition of language or business manners of each country. What is most sought after is management ability without regard to the country.

From this perspective, we have newly started global management training for employees of manager-level and above. This training for 6 months places emphasis on future growth of the individual forcing them to strictly reevaluate each individual's accumulated management skills through concise discussion and evaluation from multiple angles. The results of such training should enable the beneficiaries to exhibit their skills not only in overseas business but also in other work.

In the 3 shopp ing mal ls operating in China and also i n s h o p p i n g m a l l s u n d e r preparation in ASEAN countries, s taff recrui ted by the local subsidiaries are succeeding with personnel exchange becoming more active. With personnel becoming more varied, the most important thing is for all personnel to share AEON's sense of values. I sometimes transfer over to the local sites to work to pervade the sense of values through repetition of trainings and discussions.

Under the shared sense of values as symbolized in "AEON's Code of Conduct", local employees think by themselves and manage the shopping mall while adjusting to the actual situations of the area. This is the ideal situation which we are trying to achieve. The executive candidate for each country is expected to have the awareness of building the company together at the same time as promoting AEON's sense of values throughout his/her subordinates. We want the shopping malls deployed in each country so as to be evaluated by the people of the specialty companies as being a place where "employees who work at AEON MALL raise their levels", as well as cherishing the customers.

This year, we performed rec ru i tment o f Japanese overseas students in China for the first time. What we expect from them is not their language skills but to use their communication abilities to breakthrough situations even when hit t ing wal ls. Not just for the opening of overseas stores, but also for the process in which a company grows, each and every employee is required to grow and pursue new challenges.

For this reason, we started providing an allowance to support self-investment required for career advancement.

Already many employees have crossed the seas and are performing with the company including support to those families who also went over. Although the company will become a company of mixed nationalities, ages and career histories, it is important not to think this is special and to aim to become the representative developer of Asia through everyone's efforts.

Global management training


Feature 1

What did you feel having worked at AEON MALL?Sakuragi: Compared to the Japanese manufacturer I worked with before, the employees are bright and fun to work with. Most of the guys are very smart-looking too.Inn: I was surprised that they are not only thinking about

profits all the time, but also thinking about the environment and the society. They are boldly stating with their chests out that they are a "company which is contributing to society".Ka: Although currently my work is to be the bridge that links China and Japan within the company, I regularly hear a lot of voices saying "Why can't Chinese people perform "HouRenSo" (Japanese for report-contact-discussion) or "Why can't they work as

instructed?" As this kind of ethnicity is deeply rooted in that country's history, I believe that thinking about things from a Japanese perspective is not good.Inn: In China, there is a saying "Failure is the mother of success". A person-in-charge is given a certain amount of freedom to work without requiring approval from the superior for the small actions. If a mistake occurs, thinks on his/her own to solve the problem and if the problem cannot be solved, he/she discusses the issue with his/her superior. In Japan, I feel it is the norm that younger employees regularly ask "Can we perform this by this method?" to receive approval to proceed with work

T h e p o w e r o f t h e " p e o p l e " s u p p o r t i n g t o w n d e v e l o p m e n t

AEON MALL seen from the eyes of foreign employees

Mika InnAccounting Group, Accounting DepartmentJoined April 2011Born in Jilin Province, China. Worked at a bank while in China. Came to Japan as an overseas student. After graduation, worked at a Japanese trading-related company before joining AEON MALL.

Sumiko SakuragiSecretary, China GroupJoined January 2011Born in Zhejiang Province, China. Majored in International Management during student days. While researching multinational corporations, gained interest in global deployment and joined AEON MALL.

Ii KyoSales Representative at AEON MALL Hamamatsu ShitoroJoined April 2009Born in Jiangsu Province. Get married when studying in Japan as an overseas student, and joined AEON MALL following graduation. Returned after maternity leave and currently responsible for sales of fashion and miscellaneous items.

Shin KaRecruitment & Education Group, Personnel Management DepartmentJoined February 2008Born in Shandong Province. After working for a real estate company, joined AEON MALL after wanting to work for a business deploying throughout China. After concluding work as a sales representative for a mall, working in Personnel Management Department as of April 2011.

Tell us the work you are responsible for.

Feature 1 : AEON MALL seen from

the eyes of foreign employees

With the acceleration of store openings in China and ASEAN, it is necessary for our company to become a company where employees of various nationalities, cultures and lifestyles can combine their strengths. Not only restricted to opening shopping malls overseas, what kind of organization should we aim for in order to become a global company able to maximize the abilities of our various personnel? We decided to ask the views of our foreign employees on what they think of our company.

Ka: Upon ent ry to the company, I was a sa les representative in charge of supporting increases in sales of our tenants. Currently, I belong to the China, ASEAN personnel support group and am concerned with the review of China's personnel system and with the construction of personnel systems of local subsidiaries within ASEAN.Inn: I am in the settlements team of the accounting department and in charge of six domestic shopping malls. I have experience with working in a Chinese bank and I believe I was recruited as a person who understands both the Chinese accounting system as well as Japanese accounting.Kyo: I am in charge of sales of fashion and miscellaneous items at AEON MALL Hamamatsu Shitoro and support of specialty shops through the analysis of data and sales promotion planning.Sakuragi: In a single phrase, the department I belong to would be the window to Chinese business. I am involved in the support work of offices and the local subsidiary in each area as well as procedures for establishment. With the acceleration of local shopping mall development, attending work of visitor groups from China is increasing rapidly.

everytime from their superiors.Kyo: When working at the shopping mall, I sense the importance of sharing information within the team. When the person-in-charge is off-work, another can take his/her place. Now, I have come to take the initiative in reporting to my superior or sharing information with specialty stores. I take lunch breaks with my colleagues and often discuss concerns such as about child-raising.Sakuragi: In addition to emphasizing "HouRenSo", there is a communication called "by unspoken agreement" between Japanese people. Doing this to Chinese people and assuming "He/she will understand" without saying the words is a cause of trouble. Not restricted to Chinese people, it is important that everyone think on the communication method.Ka: Instead of pursuing "Why can't Chinese people do this/that?", it is important to think on what kind of system and personal relations will allow them to move of their own volition. In order to do this, it is important to understand Chinese culture from various angles and sensitivities. It is my role to fill this gap and I intend to callout as much as possible.Inn: Concerning accounting, I believe the Japanese way is more detailed and better. However, in China, everything moves speedily. Even if a mistake is done, the idea is to fix it in mid-flow. Japanese companies often pursue perfection and I am a little worried that even for shopping mall openings in China, our company perhaps plans too detailed and in this time, is overtaken by local businesses.Sakuragi: When guiding people on visits, I have often had difficult experiences with coping with sudden changes to the schedule having planned an overly tight prior plan. Perhaps it is better to absorb Chinese thinking a little to become more adaptable to change.

How easy is it to work as a woman?Ka: I have never felt that being a woman and working as being a loss. Expectations are high with our company planning to nurture women to manager positions.Sakuragi: At AEON MALL, though I have not felt any prejudice to either women or men, I find it strange that most of the manager roles are filled by men. In Japan, there are women who are reluctant to become leaders because of the weight of responsibility but I believe that

there is more merit to be gained by more women doing so.Kyo: I currently take leave to pick-up my children from the nursery. All the staff warmly support me. My husband initially said "Wouldn't it better if your quit your job?" but finally understood my decision.Inn: My children are being cared by my mother. I want to show them my hard-working self and become the sort of mother to be an example to them.Sakuragi: My child is now 3 years old and I am currently thinking on how to perform both child-raising and work at the same time. I sometimes wish for a nursery close to work for use for the employees and the people of the region, but this may be difficult in Japan due to rules and regulations.

Tell us of your future dreams and aspirations.Kyo: As the staff of the specialty stores are sales professionals, I acquired bookkeeping 2nd grade while I was taking maternity leave. I would like to experience operations work and become a professional of the shopping mall business. I believe I can work anywhere in the world if I have confidence and can deal flexibly with anything.Inn: I think that there will be a necessity to review the accounting methods of overseas subsidiaries so I would like to exercise my knowledge and experience here. By accumulating various experience, I want to be able to understand the on-site movement from the accounting books.Sakuragi: From now on, just being able to speak Japanese and Chinese is not a strength. We have to sincerely think on what we are being expected to do. At some point, I would like to use my experience gained at the company to teach others.Ka: To be able to grasp the entire operations of AEON MALL, I would like to work in development and other departments too. I do not only want to work in China just because I am Chinese, but I dream in being able to rise to world's stage at some time.


Feature 1In China and the ASEAN countries, understanding of large suburban commercial facilities or shopping mall businesses is not pervasive, therefore, it is not easy to build the mutual trust with local partner companies and the staff and proceed with building a town. With what kind of feelings are those employees, who crossed the seas and are placing themselves in a different environment both personally and professionally, working on daily tasks.

Kou SakamiLeasingGeneral Manager Vietnam (Hanoi)

Fumiaki MiyoshiManager AEON MALL Cambodia

An experience in reviewing my career up to this point

Mamoru TerakawaOperation ManagerAEON MALL Tianjin TEDA

Tadashi MitsuokaSenior ManagerTenant Leasing Div.AEON MALL (China)

China Cambodia

VietnamChallenge in an environment where I can make my own work China

Treasure feelings of understanding someone else

Contributing to the country's development through work

China (Beijing) Cambodia (Phnom Penh) Vietnam (Hanoi)


Expansion of town development which transcends borders

From some time before, I have wanted to test to what degree my experience and thinking is effective abroad. I crossed over to China in October 2010 to take charge of a large-scale tenant replacement (exchange of specialty stores for the purpose of revitalizing activity) of AEON Beijing International Shangcheng Shopping Center. Currently the work is extremely enjoyable. Differing from Japan where work is packaged to some degree, I feel more comfortable with making my own work while working overseas.

When enticing specialty stores to the existing shopping mall, I focused on approaches to stores that matched certain concepts or price ranges. For negotiations with Chinese specialty stores, it was necessary to earnestly convince them not through explanations of compartmentalization and commercial areas but by saying that "I want to make this kind of mall so I need you", otherwise they would not deal with me. Not restricted to leasing, it is above all else neccessary to have a strong will of "I am here because I want to do this "when working abroad. After all, the language can be learned later.

My worry when working here is the thought of "This is normal in China" becoming common. Both Japanese and locals say this quite often but something that can be done in one month takes two or three months, then a problem definitely exists. If in this case we conclude that "This is normal in China", the problem would never be discovered and will not lead to any improvements.

As we are here as challengers, we should always continue to challenge for a higher level. In the near future, I would like to accumulate more experience and grow so I can take complete control of the overseas leasing business.

I got a transfer order at the end of October 2011 and moved into the local site in November. Although an overseas transfer to do business is a first for me, I am looking forward to this new challenge. Phnom Pen is a city bustling with activity and gives me the impression that it is always changing with the openings of new restaurants and tenants even after my transfer. As I can buy rice and imported foods, I do not have any problems with the diet but with average temperatures high and in the range of 20°C to 35°C and with seasons varying from wet to dry, caution is required to keep healthy.

Currently, I am in charge of general affairs, recruiting and the entire management for Cambodian subsidiary company of AEON MALL. I am also communicating with the resident office of AEON MALL Co., Ltd to establish the foundations as the overseas subsidiary. With the cooperation of the ASEAN Group, General Affairs Department and Personnel Department of our Head Office, I am able to get involved with a wide range of operations across the border of multiple departments.

Within the public language of Cambodia, Khmer, there is no such word for "shopping mall", with the closest expression being "market or marketplace". As a result, it is necessary to explain our company to the local clients or to place efforts in PR to customers. Although english is mostly used for business, as it is not the mother tongue for both parties, it is important to both understand the other person's feelings and to make efforts to get the message across in order to convert nuances or to explain detailed meanings.

Currently we have started rec ru i t i ng e f f o r t s t owards opening. We will do business together with staff who can think of the long-term perspective for the first AEON shopping mall in Cambodia.

Since April 2012, I have been appointed to a new post in Hanoi, the capital of Vietnam. As the person in charge of leasing centered in Vietnam and including Cambodia and Indonesia, I have performed everything from research to planning including market research, concept proposals, tenant mixing, zoning and income planning. Additionally, I have done document creation such as contracts, negotiation of tenant openings, recruitment of local staff and education.

Although when my appointment to overseas was decided, I was honestly surprised, I felt that this was a chance for precious experience to be gained. Including my children of 5 years and 2 years, I moved the entire family to Vietnam. The biggest wall concerning work here is the language. Vietnamese is a language that we find difficult to acquire and is difficult and therefore makes communication difficult. Additionally, as AEON MALL is not well known here, appointments are difficult to make due to lack of trust together with difficulties in satisfying contracted speciality stores with the need to deposit their rental deposits. Also, Saturdays are a work day, with the only day of rest being a Sunday. There are so many

differences from Japan that the feel almost endless. It is easier and therefore less stressful to think that there are no differences between Japan and Vietnam.

Even with all these differences, when talking with the local staff, potential store openers and cooperative companies, I feel the size of expectations towards AEON MALL and believe the contributive worth that the construction of a shopping mall could bring even a little to the development of Vietnam. I believe the most important thing when working here is "the power to promote business". Unlike Japan where each business is properly segregated, the organization is still in its infancy in ASEAN, therefore, requiring the need to look over the surroundings while proceeding with business. Including my personal life, it would be a lie to say that there has been no labor but I will give my best within the given enviroment.

Feature 1 : Expansion of town developm

ent which transcends borders

While working the domestic market, I was starting to feel like a big fish in a small pond and therefore decided to come to China of my own volition about half a year ago. For my children, I wished that they could come into contact with a different culture from a young age and to know that there are many people in the world with different thoughts and lifestyles from their own.

Currently I am in charge of management and maintenance of the buildings and facilities. Although I experienced the same work in shopping malls in Japan, it is not uncommon for contractors in China to demand payment before work or not being able to keep the promised date. Also, we are often taken for granted as our company's visibility is still low. Even in this situation, we need to coordinate work through consultations with our superiors and other departments but it still does not often go as hoped. I guess there were instances where I unawarely took for granted the company name or title in Japan. As I cannot cheat the fact that I cannot do, this is an opportunity to review my abilities. Although I am communicating with the local staff via translator, it is not

well received that other staff are related to each other's responsible work. They are all different individuals although they may all be Chinese, and it is important to realize that our thoughts and values are different from those around us.

Difficulties will continue, however, by adding my experience that is only possible because I have come abroad, I hope to become a presence that not only opens the scope for myself, but for my colleagues and subordinates. As it is not a period where one must work without thinking much about one's family, I would like the company to continue to support employees so that they can reduce the uncertainty that comes with them going abroad.


Our company merged with Diamond City in August 2007 and opened its first overseas shopping mall in Beijing in 2008. Following on from this, new openings have continued in both domestic and overseas and even looking back on the past 5 years, business has enormously expanded together with the company size. Having experienced these times following joining AEON, what do these young employees think of the current AEON and the future AEON? We asked employees from various departments for their honest opinions.

[Attendees]Takumi Ibuki: (Joined 8 years ago) New Store Construction Group, Construction Department, Development DivisionShun Okada: (Joined 7 years ago) Kinki Development Department, Development DivisionKatsuya Kouno: (Joined 6 years ago) West Japan Development Department, Development DivisionYoshiki Hyodo: (Joined 9 years ago) Marketing Deparment, Sales DivisionSatoko Imai: (Joined 7 years ago) Secretary's Office


Discussion: AEON MALL's Now and the Future

Okada: Overseas training is performed frequently and with some close members actually moving, my thoughts are that overseas advancement is on the way.Mano: Even from on-site specialty stores we recently hear a lot of talk of "we are also going overseas".Hyodo: "When you go, we go together". Such talk was not even uttered as a joke, 3 or 4 years ago.Kouno: During the development phase, there are times when we are questioned about overseas deployment by the government, so I believe that this direction is starting to pervade externally too.

Ibuki: I hear a lot from senior employees that there are many differences on-site in comparison to domestic locations such as awareness towards construction periods of construction companies and the quality of buildings.Sugawara: When I went to Malaysia for overseas training, I was struck by the scale of the commercial facilities. I was also surprised by employees eating boxed lunches on the sales floors.Mano: Having seen the attitude of the staff at work when I went on the same training,

I thought it difficult to differentiate in which areas the Japanese way should be enforced, and which areas where we should match the style of the locals.

Hyodo: In terms of widening our aspect, it may be better to take in the local methods.Imai: The way customers feel comfortable towards customer service and space is different depending on the country, so different approaches matching the region will be necessary.Fuji: In any case, as we are a developer,

gaining the cooperation of the specialty stores to educate our employees is a necessity. This may take some time as thinking and habits are different.Higashi: We cannot bring in promotion planning on its own when thinking about what we should do for summer and winter bargain sales in countries without definitive seasons. Kouno: We should not transfer work in the existing order of development → construction → leasing → sales/operations, but perform all sections on-site from an early stage and think about the concept, planning and MD while taking into account the culture and habits of the region.

What are your thoughts regarding overseas appointment?

Okada: I believe that our generation needs to go overseas in the future. Although there may be times that I fail, I want to expand the good things about AEON MALL worldwide.Sugawara: Although I feel that I need

to go soon, first I need a good talk with my partner about things such as what we should do once we are married etc. Imai: I agree. Although I am happy that such opportunities are available, I would need to think about many things if I was married.Higashi: As I have recently had a child, if I were to go with family, I am a little concerned about the medical and educational situations.Ibuki: What I am concerned with and what I cannot imagine is to what degree I were to grow having been 3 years overseas and what kind of posting I would work in once I returned to Japan.Hyodo: When I joined, I could not imagine the company

becoming as it is now. Although when I think of the various possibilities, I find it exciting.Kouno: Yes, a change in awareness of all employees is necessary. Regarding the shift to overseas, there remains differences in temperature between the thoughts of the company and the people on-site.Mano: When considering a change in awareness, I hold some skepticism as I am unsure as to what performance people who are not proactive can perform when posted overseas. Although I am fired up by people around me saying "If you go overseas, you become promoted quickly", I want to create the kind of company where everyone can stick their chests out and say that they love their company.

What do you think of the future of the company?Imai: I f asked "Do you think that something has dramatically changed in the last 5 years?", my answer would be mostly somewhat uncertain…this is something we need to change. Recently, shopping malls of our competitors are being noted so I believe that we need to be better at creating stories.Higashi: The shopping mall I work has been open for

10 years, but it has not changed very much and although it has been activated. As the age range of our customers increases, I cannot yet see the method of deployment to existing stores for the strategy of shifting focus to senior members of society toted by the Group.Okada: I think it is necessary for us to show the characteristics of each shopping mall more though the

number of shopping mall has increased fast. Mano: I am also concerned as to whether we can succeed overseas when we remain unable to build shopping malls which match the region domestically. On the whole, promotions have been unified, so I feel that there is more need to display individualism.Kouno: Although our “two anchor stores & one mall” format having a higher profitability compared with other formats, and has been established as AEON MALL's style, I believe that thinking about an original format that evolved from “two anchor stores & one mall” as a growth strategy of our company will lead to becoming the No.1 in Asia by strengthening of the software-side. Additionally, with the expansion of the company, every th ing is s tar t ing to become vertically split per department, so I think there is a need to further strengthen the horizontal connections throughout the company.Fuji: When I talk with my subordinates, I say "There are not many jobs where you can perform this many kinds of work or meet many different kinds of people within a year or two after joining". It is my ideal that that AEON MALL will become a part of their daily lives for many people in the future.Sugawara: My dream is for everyone to come back having succeeded in putting the shopping malls in China and ASEAN on the right track. If we are to do this, I want us to become Number One.Ibuki: I think that the target of Number One in Asia can be achieved if all the employees think that we can become Number One. After this, the next step is how to make everyone's awareness come together as one.

Feature 1 :Discussion: AEON MALL's Now

and the Future

Tamayo Fuji: (Joined 8 years ago) Operation Manager, AEON MALL NatoriHiroaki Mano: (Joined 6 years ago) Sales Manager, AEON MALL Higashiura, Noriko Sugawara: (Joined 9 years ago) Operation Manager, AEON MALL Musashi MurayamaShuntaro Higashi: (Joined 6 years ago) Sales Representative, AEON MALL Niihama

Feature 1


Guangdong

Shangdong

Jiangsu

ZhejiangHubei

Fujian

Beijing・Tianjin

Viet Nam

Indonesia

India

China

Taiwan

❶❷❸

MyanmarLaos

Cambodia

Thailand

Malaysia

Following on from the 3 shopping malls opened in China (Beijing and Tianjin), we are currently progressing at a rapid pace in the preparation for opening shopping malls across China and the ASEAN countries through the establishment of subsidiaries or local offices. In combination with the voices of local staff working in various countries, we report on the current situation by the person in charge.

❶AEON Beijing International Shangcheng Shopping Center (Open in 2008)

❷AEON MALL Tianjin TEDA (Open in 2010)

❸AEON MALL Tianjin Zhongbei (Open in 2012)

India

I lived in Japan for two years. As the shopping malls in India are small and inconvenient, I believe that everyone will be overjoyed by building similar shopping malls that are in Japan. Everyone, please come to India.

I am currently searching for tempting trading areas and locations including the capital, New Delhi, in the vast country of 1.2 billion people. Everyday is a surprise with Indian cities being a mass of confusion of the world's leading and archaic together with development proceeding with ferocious energy. Under the background of a rapidly changing lifestyle together with the rapid motorization, I am convinced that AEON MALL will definitely be able to contribute to the Indian lifestyle. (Hideo Kanou)

Abhipray Basu

Fujian Province

China

Located next door to Taiwan, Fujian Province is renown as

being the production region for oolong tea and tieguanyin

tea. Research and negotiation with the government are

proceeding with multiple candidate sites being considered

in Fuzhou City, capital of the Province, in Quanzhou City,

birthplace of the ocean silk road, and in Xiamen City, a city

placed 6th in GDP and which is also sparkled as being

elected as the city where people found it is the most easy-

to-live in all of China. Although there are not local staff yet,

efforts are being made to target the opening of a lifestyle

changing shopping mall.(Fumihiko Maeda)

Vietnam

I joined in May 2011 and am currently working as assistant to the local head. As an employee working for a Japanese company, I am making efforts to tell the people of Vietnam and local companies of the appeal of AEON MALL.

Hanoi, the capital of Vietnam, is the central city for politics. In an area near the center of Hanoi City, we have decided to build the first shopping mall for Hanoi and we are currently preparing to establish the company. Using the know-how accumulated in Japan, we are making efforts with our staff and our partner companies to provide a new lifestyle within this exuberant city. (Yoshiharu Miyazaki)

Nghiem Thi Kieu Tam

Indonesia

Eight months has passed since joining Indonesia's first foreign commercial real-estate company. As development representative, I have been involved in the negotiation of numerous candidate properties. I am giving my maximum in the challenge of opening this shopping mall.

Located in the southern hemisphere, Indonesia covers an area 5000 km east-to-west with a population of 240 million people, inflation rates in the 3% range and car sales figures of one million a year. I will establish a wholly owned subsidiary in this country within 2012, and want to build a base that can play a center role in ASEAN Area in the future. (Ryuma Okazaki)

Fadjar Guntara

Shangdong Province

China

I am responsible for development as assistant to the general manager since August 2011. By bringing our strength together and by always communicating with one another, we will work hard towards the opening of the first shopping mall.

Currently we are looking for the first contract property as a candidate. For this purpose, I believe that the contact development for city goverments within Shangdong Province and the maintenance of the information network are of extreme importance. I will vigorously progress together with the staff of the development department in Shangdong Province.(Toshiro Hattori)

Wang Xin Juan

Jiangsu Province

China

Now that projects in Jiangsu Province are facing an important phase, I will aim to create a workplace that enables us to head towards our goal with the cooperation of all the staff at the same time as fulfilling my duties as the person-in-charge of development.

Since appointment in April 2011, I repeatedly discussed with related members including the Suzhou People's Government and domestic developers and in October managed to conclude the agreement for the start of construction work of a shopping mall in the Wuzhong District. We expect opening of the first Eastern China area's shopping mall in spring of 2014. On-site expectations are extremely high, and I am carrying out my work under a sense of fulfillment only found on overseas projects although things are difficult, with the support of my colleagues who increases every day. (Fumihiko Endo)

Hu Lei

Hubei Province China

In charge of personnel, general and financial affairs, I am studying how to smoothly promote development operations in Wuhan. I am making effort to quickly become a person of AEON through understanding of the DNA of AEON.

Having started reseach in August 2011, in October of the same year an agreement was concluded with the Wuhan People's Government for the "shared cooperation of targeting the development of at least 5 shopping malls in the next 5 years". Currently implementation is proceeding on several properties within the city. We set up a resident office in February 2012 and are making efforts together with 5 local staff to promote development operations and to establish a subsidiary company. We are working hard to ensure the success of the first foray into the Central China area. (Shinichiro Minami)

Ou Xiao Hong

Zhejiang Province

China

Having joined in December 2011, I am in responsible for interpreter work. I am trying to express AEON MALL's appeal. I will work hard to ensure the building of many shopping malls in the Zhejiang Province.

As a newly developed area, building of the AEON brand and property development are progressing in parallel with property selection centered in the capital of the province, Hangzhou City. Relations with the local government are strengthening with candidate locations for the shopping mall becoming ever more detailed. The recruitment and education of local development staff for the purpose of multiple store openings are big issues. We aim to open the first shopping mall as soon as possible through immediate improvement of the development system and through teamwork. （Shigeru Yamashita）

Gan Xiao Wen

Guangdong Province

China

I joined in August 2011 and am in charge of development planning. Apart from collecting information of each propery and creating the three-part set, I am coope rating in the creation of the shopping mall opening strategy by summarizing the data of the cities in Guangdong Province.

We phased the development of the Pearl River delta area where 52 million people live, roughly half of the 104.3 million people live in Guangdong Province, we have been promoting the shopping mall development since last year. We established the office in August of last year and now 10 staff are preparing for the establishment of a subsidiary company as well as development. We will aim in becoming the No.1 dedicated commercial developer in Guangdong Province through the development of many shopping malls supported by everyone in the region as soon as possible. （Akira Asatsui)

Liang Shan

AEON MALL Tianjin You Yi Nan Lu (scheduled opening in autumn 2013)

Beijing & Tianjin

China

I h a v e b e e n i n c h a r g e o f t h e development centering in Beijing and Tianjin for the past 4 years, with being fulfilling everyday including an intra-company marriage. Now, I am excited with expectations as to how both company and I will open-up into the future.

Currently 10 staff are in charge of the growth strategy for shopping mall development in the Beijing and Tianjin areas. Expected to open in autumn of 2013 is the third shoppoing mall of Tianjin, AEON MALL Tianjin You Yi Nan Lu, with 3 shopping malls being targeted for opening in 2014. While being a little confused by China's unique development methods, we are targeting to become the area's No.1 company by treasuring both communication and teamwork. （Hisayuki Sato）

Tang Chen Xi

T he Curr en t Si t uat ion in China and A SE A N

Cambodia

As account operations, I perform entry into accounting systems and recording of expenses. I am extremely proud of being a member of AEON MALL Cambodia.

If the world heritage sites are excluded, the prevalent image of Cambodia is one of poverty and land mines. However, having actually lived in the capital, Phnom Penh, you can see the real image where progress is being made day-by-day and is awash with youthful exuberance. With a feeling of the onset of infinite possibilities to this country rapidly developing, I feel massive challenge and sense of purpose in opening a new shopping mall under the concept of an information transmitting base, in the midst of this tumultuous period. (Makoto Yajima)

Sok Chann Socheath

AEON MALL Tianjin

Zhongbei China

Having joined in April 2012, I am responsible for operations of the eating and drinking establishments. I want more customers to know of these establishments and am daily making efforts to have our customers enjoy drinking and eating here.

AEON MALL Tianjin Zhongbei is a fully-fledged suburban-type shopping mall with a parking lot of over 3,700 cars. With many families coming with kids, the inside of the shopping mall is bustling. The whole staff working for AEON MALL aims to create a shopping mall full of customers' smiles. （Ken Nakane）

Ma Cheng Long

Feature 2

Feature 2 :The Current Situation in China and ASEAN


• Activities contributing to the local community• Fund-raising activities• Volunteer activities• Social welfare activities

• Forestation activities• Promotion of ISO 14001• Prevention of global warming

• Promotion of compliance• Protection of personal information(Privacy mark accreditation)• AEON code of conduct• J-SOX promotion

President and CEO

AEON MALL SR Council Risk Management Committee

Environment Committee Compliance CommitteeSocial Contribution Committee

What are the responsibilities that companies need to accomplish for a sustainable society?

This theme is gaining importance for both companies and stakeholders. Especially, the shopping mall business is closely connected relative to the local community and we believe that there will be no progress of our company unless social responsibilities are properly performed.

The base of our CSR activities is 5 pillars based on ISO26000 issued in November 2010 as the first international standard concerning the social responsibility.

AEON MALL's Approaches to CSRCSR activity base is "5 pillars" based on international standards

The 7 core themes set down in ISO260001. Organizational governance 2. Human rights 3. Labor practice 4. Environment 5. Fair business practice 6. Consumer issues 7. Participation and development of the community

Promotion ofenvironmental conservation

from region to the planet

Related to the environment

Realization ofa workplace where

everyone can work with energy and vigor

Relating to organizational governance, human rights,

and labor practice

Acquisition ofsecurity born from

ceaseless pursuit of safety

Related to consumer issues

Continual contributionto the regional society

Related to participation and development of the

community

Implementationof a healthy

and good partnership

Related to fair business practice

CSR Promotion System Diagram

We have been granted an environment rating loan from the Development Bank of Japan in 2008 upon obtaining a rating of the highest rank consecutively for two years for being "especially advanced in environmental efforts."

The FTSE4Good index series is one of the world's social responsibility indices used to evaluate companies in terms of environmental conservation, relations with stakeholders, and human rights. Upon a review in March 2012, it has been incorporated consecutively for 8 years.

AEON ON MALL's Approaches to CSR


We will realize a workplace where all employees can bring out their maximum abilities by respecting human rights and creating an organization where the company can grow regardless of nationality or gender.

Realization of a workplace where everyone can work with energy and vigor

Employee data (as of Feb. 20, 2012)

Disabled employees

New employees(Male / Female)

1,053(346)

1,136(385)

19(7/12)

20(10/10)

8 14

5(0)

14(1)

FY2010 FY2011

Employees(Part-timers)

Employees taking child care leave(Male employees)

Knowledge and procedures necessary for pregnancy and bringing up children were summarized in a guidebook, and applications were simplified to aid easy understanding. With these efforts, we were certified by the Labor Office of Chiba Prefecture as an employer who nurtures the next generation of employees.

Efforts in Corporate GovernanceWe believe that fulfilling our responsibilities toward stakeholders including

the customers, local community, clients, shareholders and employees will lead to improving of our corporate value over a long and stable term, and we are seeking further improvements

of our corporate governance system with further progress in improving the transparency and efficiency of management together with the strengthening of compliance and risk management.

Our company's management speed is accelerating every year. Though I am in agreement with the vision of growth opening shopping malls in Asia as an axis, each and every one is holding different problems and conditions as those who actually work are "People". With concerned voices being raised with regards to the rapid change in environment, I have decided to raise the theme of "Cementing the foundations" this year. We are holding communication with union members who

live in Japan and overseas and with union members being sent to other companies to grasp the problems held by each one of the members, and we ask the company to improve these problems as management issues. In addtion, aiming to become a company where women can comfortably continue to work with, labor and management are working together to set up an expert committee in the summer of 2012.

Osamu IshiyamaChairman of the Central Executive Committee,

AEON MALL Labor Union

Activities to cement the foundations especially in these changing times

Work environment for the employees

Towards a company where diverse people are activeWe have been putting efforts into the nuturing of female managers for some time. As of February 20, 2012, two women have been appointed general managers of each shopping mall with the ratio of women as operation managers / sales managers up to 18% in Japan.

Concerning those employees on flex time (part-time employees), we have instituted a system that supports step-ups where the level of proficiency is linked with salary raises. For the employment rate for disabled people was 1.97%, which is higher than the legal employment rate of 1.8% and is an area where we will continue to promote recruitment.

Improvement of the work-life balance We at our company are making progress through various approaches i n o r d e r f o r t h e e m p l o y e e s t o successfully combine their work and family roles. Regarding child-raising support, we have drawn up an action plan based on the Act on Advancement of Measures to Support Raising Next-Generation Children, and have been certified as being an employer for next generation education by the Labor Office of Chiba Prefecture. For employees taking care of family members, we have also set up a

system where transfers do not occur for a certain period of time so that they can work to match the situations of the family.

Program to promote the growthWe have progressed with improvements in transparency of the improvement of the educational system and setting and evaluation of the objectives so that the employees can be promoted according to career plans. We have adopted a system in which the way is opened for higher positions, following the conclusion of promotion examinations held every year.

Internal control systemFor the recording of each director's decision-making, after creating the approval form and the minutes of all meetings according to the company's regulat ions, each executive director of the proposing department appropriately stores or manages these documents. The board of directors' meeting is held on a monthly basis, and temporarily w h e n t h e n e e d s o a r i s e s . Regarding decisions approved by the president or higher, which may lead to significant risks in our company, the president will approve or the board of directors will make a decision upon discussions from various perspectives by setting up the management meet ing consisting of core members of any director above the rank of managing director and full-time auditors upon discussions from various perspectives.

Auditing & monitoring systemAs the internal auditing division of the company, our company has set up the Management Auditing Department under direct control of the president. The Management Auditing Department performs bus iness ope ra t i ons aud i t s on each division of the entire company, and is responsible for ensuring function of the internal control together with verifying its effectiveness. Audit results are reported each time to the president

with periodic reporting performed to the management meeting and auditors. In the event of a director finding a fact that influences our business or actual results out of matters that influence our business or performance, violations of the law and compliance-related problems, the said director shall immediately report so to the board of company auditors. Two of four auditors shall be independent members of the board who have no conflict of interest in terms of profitability with ordinary stockholders, and these auditors shall prioritize over other items and deal speedily and honestly with any report request concerning the execution status of operations from the auditors to the directors.

Risk managementFor business risks such as disasters, the environment and compliance, we formulate a risk management policy by conducting a thorough review of our risks through the establishment of a risk management committee as a risk management body on a company-wide level at the same time as a lower organizat ion to the management meeting, and by understanding the risk management situation, exchanging information, and conducting continuous review of risk management system. Based on this policy, regulations and guidelines are created by each risk management responsible department as defined in the "Division of Duties Regulations", and periodic review is performed. In making thiese common knowledge, efforts shall be made to ensure all employees are aware

through the use of electronic notice boards together with performing education through company training. Upon occurrence of an urgent and serious loss, appropriate information conveyance and decision making are performed based on the "Management Crisis Control Regulations" to minimize the damage.

Efforts towards elimination of antisocial forces

From the perspective of a thorough c o m p l i a n c e m a n a g e m e n t a n d the defence of the company, we acknowlede that dealing with and eliminating any unreasonable demands with an uncompromising attitude without having relations with antisocial forces are corporate responsibilities in society. In the unlikely event that such an unreasonable demand occurs by antisocial forces, we deal with it not on a personal basis but on an organizational basis including measures of civil and criminal law while building a close connection with external specialists and investigational organizations. Additionally, in becoming a member of the "Foundation for Chiba Prefectural Conference on Banning Criminal Syndicates", we closely work together with the police and the crime prevention association in peacetime to share information concerning antisocial forces and for intra-company enlightenment activities.

Realization of a workplace w

here everyone can work w

ith energy and vigor


We will promote town development in harmony with the environment, by introducing the latest technologies to limit environmental load to a minimum, creating a mechaanism where the community's ecosystem is protected, and being thorough with energy saving and waste management.

AEON MALL will pursue the realization of a sustainable society through building mal ls wi th min imum envi ronmenta l impact while effectively utilizing natural resources and raising the quality of services. As such, we have established the following Environmental Policy and will also put effort into communicating with many customers and executing regional contribution.

1. AEON MALL will reduce CO2 emissions in order to prevent global warming.2. AEON MALL will realize zero emission in the aim of preserving earth

resources and constructing a recycling society.3. AEON MALL will contribute to the improvement of living conditions of

customers and partners, the development of regional communities and environmental conservation.

4. AEON MALL will conform to the environmental laws and regulations and requirements that we have accepted.

5. AEON MALL will construct an environmental management system, create a system to prevent pollution by establishing objectives and goals for each operating division, and promote their continuous improvement.

6. AEON MALL will enhance the environmental awareness of all its employees and continue enlightenment activities to customers and partners.

7. We will disclose our environmental information while also ensuring that all our employees and partners are fully informed of this environmental policy.

AEON MALL Environmental Policy

Promotion of environmental conservation from region to the planet

Leaflets for the Employees

Solar power panels

AEON MALL Kurashiki

Ice thermal storage system

LED lighting LED sign lamps

Considerations to the Environment

Promotion of environm

ental conservation from region to the planet

Environmental systems in the shopping mallIn order to massively reduce CO2 emissions from each shopping mall, improvements on the hardware side are necessary. In addition to implementing the latest environment-related equipment to new stores and shopping malls under renewal, we perform continual improvements and verifications on energy-related equipment, and are are horizontally deploying any results obtained across all the shopping malls nationwide. We will be gradually abolishing facilities with heavy energy usage or CO2 emissions such as heaters and independent power sources which use heavy oil.

Solar power generationOur company has actively pushed for the implementation of a solar power generation system from an early stage. Currently, for all 27 malls including three shopping malls in China, installations have been concluded with a part of the electricity used within the shopping mall been powered by this system. In AEON MALL Fukutsu, opened in April 2012, a new system was implemented whereby power generated by the solar panels can be used in the event of a power outage due to a disaster etc.

Ice thermal storage systemTo reduce the power used for air-conditioning especially during the middays of the summer period when load is high, an ice thermal storage system has been implemented in 26 shopping malls.This system works by using electricity during the nighttime when power load is small to accumulate ice in the thermal storage tank, and then to use the heat energy during sales times for the air-cooling to contribute to

energy-saving by suppressing power consumption during the daytime.

Air-conditioning cold water cascade systemDeveloped by our company and already implemented in 5 shopping malls, the "Air-conditioning cold water cascade system" consists of multiple air-conditioning machines positioned in cascade to realize a reduction in the delivery of cold water as well as fine control over the air-conditioning load. During winter, the cold water absorbs heat from the heat generated from people and lighting which then warms up the exterior air and used for blowing air. By using this system, we have made possible a power consumption reduction of about 10% in comparision with existing shopping malls and are contributing to a reduction of CO2 emissions.

LED lightingFor the lighting in each shopping mall, we are promoting a changeover from the existing fluorescent lights and incandescent bulbs to LED lighting system with a lower power consumption and longer life, asking specialty stores for the introduction of the LED lighting. At AEON MALL Fukutsu, opened in April 2012, 90% of the lighting in the common use spaces is LED lighting system. LED lighting units are also adopted for exterior electric signs. Though, currently, the shopping malls that have introduced the LED lighting system account for 48% of the total, we plan to increase the ratio to 80% within 2012 and advance a changeover to the LED lighting in all shopping malls in 2015. We adopt the LED light source units also for the signboards and various signs.

Inauguration of a CSR subcommitteeThe existing "CO2 Reduction Committee" was moved to the lower organization of the SR Conference, "CSR Section Meeting" from this year. This section meeting, configured from slected staff from each department, was arranged to share information for the horizontal deployment of effective approaches across malls and to strengthen the PR of CSR activities. From now on, communication with the stakeholders will be further strengthened through the use of each type of printed item and Web site.

To increase awareness of the employeesFrom 2008, employees of AEON Group have been encouraged to take the examination "Certification Test for Environmental Specialists (Eco Test)". I n o u r c o m p a n y, a i m i n g a t a l l employees being able to pass the test with the following objectives, of 476 employees who took the exam between 2008 and 2011, 401 passed.1 . Hav ing a h igh awareness o f

environmental problem, and using this in actual operations of the shopping mall business.

2. Having detailed understanding on the methods of CO2 reduction and leading to achievement of target figures through actions.

3. Maintaining the position of being a pioneer company dealing with environmental problems.

Creating environment towards a greener mallUpon opening of a new shopping mall, we implement the "AEON Hometown Forests Program" to perform planting within the mall site with our customers. Under the hope that the heart to nurture greenery will spread throughout the people of the region and for the new shopping mall to take root and become a communal place for the region, we perform this activity as an entire group. The accumulated count of all the shopping malls in Japan has reached approx. 1,811,000 seedlings (as of Feb. 20, 2012).

Roof greening / Wall greeningNot only does greening of the shopping mall roofs and walls improve the scenery, but suppresses the rising of temperature within the shopping mall during summer which leads to the reduction of energy usage by air-conditioning. It also prevents heat reflection towards the surrounding e n v i r o n m e n t . A t A E O N M A L L Kurashiki, opened after renewal in 2011, approx. 300 denim products provided by customers were reused as earth panels to green the walls.

Environmental communicationEfforts towards the environment cannot be pushed forward by our employees alone but requires the understanding and cooperation of specialty stores and customers. We are asking the staff in specialty stores for cooperation with the distribution of leaflets, display materials in the backyard, and others. We are also asking for cooperation from the customers in the eco-bag use and recycling as well as performing environmental communication with the customers through eco-stations and eco-benches in the buildings.


We will promote town development in harmony with the environment, by introducing the latest technologies to limit environmental load to a minimum, creating a mechanism where the community's ecosystem is protected, and being thorough with energy saving and waste management.

INPUT

Businessactivities

OUTPUT

230,000 m³（98.4％）

Energy Water resourcesPaper

11,391,000（99.2％）

8,132,000 m³（97.6％）

WaterCopy paper0 m³

（ー％）

LNG

LNG

1,245,000 kWh（88.6％）

Electricity470 kl

（9.1％）

Heavy oil

OIL

1,684,000 m³（92.6％）

LPG

LPG

12,803,000 m³（89.1％）

City gas

Mall planning & design Mall operations Office activities

Gray water usage

740,609 t-CO₂（88.2％）

52,876 t（99.7％）

81.4 ％(Incl. thermal recycle)

6,939,000 m³（101.2％）

40,000 seedlings in 2011 Accumulated total of 1,811,000 seedlings

CO₂ emissions Wastes Recycle rate Waste water

(1) For the whole shopping mall including the common use spaces, AEON and tenants.(2) Excepting mozo wondercity, Otsu Shopping Plaza and AEON Mall Kyoto(3) Figure in brackets is the percentage from the previous year.

Absorbing heat and CO2 and keeping moisture.Promoting planting activities

A s t h e g r a s s "E l y mu s hum i du s " , designated as vulnerable in the Red Data Book of Japan by the Ministry of the Environment, was found at the planned construction site of AEON MALL Kusatsu (opened in November 2008), surface soil originally stored from the site was stuck to a rice paddy to perform conservation. Now, any number of insects such as dragonflies and grasshoppers have been confirmed.

10,382t

15,862t

14,948t

2,460t

301t

563t

109t

1,178t

1,988t

179t

1,259t

65t

10t

96t

45t

3,008t

-

91t

34t

93t

247t

82.9％

100.0％

53.5％

98.5％

97.1％

100.0％

100.0％

100.0％

100.0％

59.1％

75.5％

87.9％

78.9％

97.5％

61.5％

77.1％

-

100.0％

100.0％

100.0％

100.0％

Raw garbage

Cardboard

Mixed garbage

Waste plastic

Bottle

Can

Styrofoam

Waste oil

Paper

Oversized trash

Nonburnable garbage

Fluorescent light

Battery

Disposable chopsticksWaste alkaliRelease agentPolluted sludge

Engine oilCollection at stores: Aluminum canCollection at stores: Food trayCollection at stores: Milk cartonCollection at stores: PET bottle

Company-wide recycling rate(incl. thermal recycle) 81.4％

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Totaldischargeof wastes

Recyclingrate

Total discharge of wastes and recycling rate in FY2010Input / Output of FY2011 (54 shopping malls in Japan)

Air-conditioning in the raw garbage storage site prevents from turning rancid and damage from pests.

Waste is separated and weighed by type. Data of the amount of waste from each specialty store can be obtained.

Separation is performed for both bins in the mall and those used by employees with promotion of recycling through cooperation with customers.

"Park-and-ride" business contract conclusion ceremony (Yamanashi Pref.)

Biotope within the site (AEON MALL Omuta)

Ischnura senegalensis

Promotion of environmental conservation from region to the planet

Replication biotope of a rice paddy at the planned location.

Considerations to the Environment

Promotion of environm

ental conservation from region to the planet

Post-quake measures to save powerFrom concerns over power shortages due to the Great East Japan Earthquake in the summer of 2011, we made efforts to reduce power usage centering on the following measures:

● Extinguishing part of the in-building lighting

● Setting the in-building temperature at about 28℃

● Stopping operation of part of the escalators and elevators

In addition to requesting cooperation over power saving from specialty s t o r e s , w e a r e a s k i n g f o r t h e cooperation and understanding from our customers through store posters and announcements. As a result, we were able to achieve demand restraint ratios of 25%, far over 15% requested by government for shopping malls on the network of Tokyo Electric Power Co.

Together with changes in society and infrastructureAlthough we had mainly made the development of suburban shopping malls where customers are expected to arrive by their own cars, currently one-third of all the shopping malls in Japan

are situated close to an overground or underground station with all shopping malls domestically having prepared an environment where public transport organs can be used to reduce the load on the environment.

Promotion of using public transportationAEON Lake Town and AEON MALL Tsurumi- ryokuchi are promot ing campaigns to encourage customers to arrive by public transportation in cooperation with railroad companies and the transportation authority. A customer who arrives at the shopping mall by public transportation by using a travel card can accumulate scores points to be exchanged with prizes and points to get a discount off the travel fee by touching the card to dedicated terminals within the shopping mall.

Electrical vehicle battery charging station

Within AEON Group, electrical vehicle

battery charging stations have been set-up at 25 commercial facilit ies including our 11 shopping malls, as of April 2012. We will continue to place battery charging stations in each area to realize a sustainable society and conservation of the global environment.

Park-and-ride systemIn cooperation with local governments, we have implemented "park-and-ride" at AEON MALL Natori, AEON MALL Higashiura and AEON MALL Kumamoto. The purpose of th is is to contr ibute to the lessening of atmospheric pol lut ion and the loosening of traffic snarls by allowing regional people to park their cars at the mall parking space and travel to the closest station or town center by public transport. From April 2012, AEON MALL Kofu Showa has started demonstration experiments into a "park-and-ride" system where a shuttle bus runs between the shopping mall's parking lot up towards Kofu Station.

Waste reduction through "visualization"In the reduction of waste, it is important to clarify "What, Where and How much waste is being disposed of?" and be made aware of as an issue. At each shopping mall, waste is first separated into 17 different types and the introduction of the weighing system for each of the 17 waste types is being examined, and 43 shopping malls are using this system as of 2011. After weighing waste of each type, specialty stores stick a "Weighed" sticker on to the waste and dispose of wastes at the storage location for each waste type. From now on, we can expect improvements in waste reduction and management efficiency by further analyzing the waste types by business type and pass ing the feedback regarding the emissions data to the specialty stores. Of the separated wastes, maximum effort is given to those that can be recycled with data being collected for the recycle rates of each type. Recycle rates for the entire company was 81.4% in 2011. At the same time, as a measure towards the Wastes Disposal and Public Cleansing Act, we are improving the SR system so that the system automatical ly notifies waste disposers to prevent expiration of the contract or permit before it happens.

Efforts towards Conservation of BiodiversityIt is our responsibility as a developer of shopping malls, to as much as possible reduce the influence of the mall on the surrounding environment. As part of the planned are for AEON Mall Omuta, opened in March 2011, was home to 25 types of endangered species, close to 5,800 m2 of the space was conserved as a biotope. Following mall opening, customers are able to become acquainted with nature through our mall.


Based on universal ethics and together with our partners, we will build a stronger and healthier cooperative relationship while giving consideration to the commercial practices of various countries.

Implementation of a healthy and good partnership

Masahiko Kondo who shined as the winner of "AEON MALL Grand Award" expressed his joy; "The Role Playing Contest is an opportunity where I can review my customer service. I am grateful for your giving me this opportunity".

Facilities only for employees (AEON Mall Fukutsu)

Convenience Store

Massage Chair Powder Corner

Cooperation with Partners

AEON MALL Kyoto UNITED ARROWS green label relaxing Masahiko Kondo

AEON MALL Niihama Starbucks CoffeeYuuka Ando

AEON MALL Akita coenSachie NittaAEON MALL Hiroshima Gion Jewelry Tsutsumi

Taemi AsanoAEON MALL Ota au Shop

Nao Watanabe

Food, Eating & Drinking, Services Fashion & Goods

AEON MALL Natori Eddie BauerWaka Takahashi

Foods, Eating & Drinking, Services Fashion & Goods

Award for excellence (no order)

Second-prize winner in the category Special Award from Judges

AEON MALL Grand Award

First-prize winner in the category

AEON MALL Aratamabashi La Sweet Pasta Ai Hattori

AEON MALL Chiba New Town Tonkatsu Hamakatsu Mariko Miyajima

AEON MALL Itami Starbucks Coffee Yasuyo Kajimoto

AEON MALL Natori Itto Gokoku Rika Miyazawa

AEON MALL Fukuka Sport Club Renaissance Machiko Sunada

AEON MALL Tsurumi Ryokuchi Capricciosa Yasuko Tanigake

AEON MALL Yamato-Koriyama AIGAN Yasunori Honda

AEON MALL Hamamatsu Shitoro INGNI Mieko Shimada

AEON MALL Kumamoto FANCL HOUSEJ Mai Toyozumi

AEON MALL Sakai-Kitahanada INGNI Reika Kozono

AEON MALL Kawaguchi 3can4on Hisako Innami

AEONMALL Yamato Build-A-Bear Workshop® Saori Niizawa

AEON MALL Chiba New Town Branshes Yuka OkamotoAEON MALL Hamamatsu Shitoro

earth music&ecology Natural store Kumiko Tanioka

AEON LakeTown kaze　axes femme Nostalgie Midori Morooka

AEON MALL Itami LOWRYS FARM Risa Iwamoto

AEON MALL Chikushino SpRay Sachi FukuzawaAEON MALL Hiroshimafuchu

THE SHOP TK MIXPICE Takuma Nishida

List of Awardees: The 4th Nationwide AEON MALL Customer Sevice Role Playing Contest

Implem

entation of a healthy and good partnership

Not just restricted to opening shopping malls, we will make efforts to gather strength for the environment and society.

With 25 stores of "earth music & ecology" and 21 stores of "Green Parks" opened in AEON MALL, our company has involved in planting activities both in

Japan and overseas with about 240,000 m2 of trees being planted in Shenyang, China. AEON is indeed a pioneer for this kind of activity. Performing shared planting work with neighboring residents before opening will give customers emotional feelings towards the commercial facility as well as giving the feeling that the shopping mall is coexisting in harmony with the locals because it is surrounded by greenery. When AEON MALL Kurashiki was renewed, wall greening panels were allowed to be attached using waste denim as the base material, developed in concert by our company whose Head Office is in Okayama and Okayama University (Refer to page 21). Following the Great Eastern Japan

Earthquake, we employed 130 store employees from the local community based on the bel ief that what is important above all is employment for the restoration of the Tohoku region. In addition, it was really reassuring to know that AEON MALL's chairman Noriyuki Murakami assumed the position of the president of AEON Tohoku to stand at the forefront for the reconstruction support of the Tohoku region. The other day, I met with President Okazaki and talked about my wish that now is the time to build commercial facilities full of energy in Fukushima together to support local people. I hope that we can continue to cooperate and act across a variety of areas from now on too.

A shopping mall full of smiles through successful partnership

We are in charge of facility operation management of AEON MALL Natori in Miyagi Prefecture. With four of us always being at the shopping mall on rotation, we perform daily inspections on the air-conditioning and electric equipment to allow the customers to always use the shopping mall comfortably and to speedily act in the event of trouble.Though considerable damage was caused to various facilities due to the Great East Japan Earthquake, we were able to complete recovery successfully with the cooperation of each representative of AEON MALL

and each equipment contractor. I would like to give my sincere gratitude to the support and encouragement from everyone at shopping malls all over Japan.As many customers visit AEON MALL, we need to be careful about our work. We hold the partnership dear in our hearts and the four of us will continue to give our maximum effort in the building of a shopping mall full of smiles.

For the comfortable working environment for our employees.

All the partner companies are the driving force which supports growth each other for our company. At each mall , there is a proposal box for collecting questions and opinions from our employees with the general manager answering the proposals and reflecting the results in mall operations.Addi t ional ly, in order to provide comfortable work environments to all who work at shopping malls, we are gradually increasing the number of shopping malls with a convenience store and powder room only for employees as well as keeping enough rest space.

Aiming at upskilling of employees

"The 4th Nationwide AEON MALL Customer Serv ice Role P lay ing Contest" was held In Nov. 2011. The purpose of the contest is to support improvement o f the employees ' service mind and motivation, and this 4th contest has expanded in size to incorporate 55 shopping malls and over 97,000 people participating. As "Gold Staff", 24 people selected in the regional competition from a rich and varied selection of specialty stores including fashion, foods, sundries and amusements performed role playing competition for a series of customer services from welcoming the customer to sending off the customer. In addition, jointly with the developer business of each AEON Group company, “The 1st Nationwide AEON “Doyu-ten” Role Playing Contest" was held this year with 23,000 associated stores participating. An AEON “Doyu-ten” is a partner store that seeks to achieve successful results together under the spirit of "same Thinking" and "same Actions" for each other's business, based on its corporate philosophy "Serving the

regional society through commerce". In this competition, the top 6 people of the Nationwide AEON MALL Customer S e r v i c e R o l e P l a y i n g C o n t e s t participated as representatives of AEON MALL.

Yasuharu Ishikawa President Cross Company Co., Ltd.

Ushio Hoshi Mitsubishi Electric Building Techno-service Co., Ltd.


We implement town development in providing safety so that we are always evaluated as being secure for everyone who is involved with us.

A shopping mall where everyone can come at ease

Acquisition of Security Born from Ceaseless Pursuit of Safety Safety Control of Shopping Malls

Solar power generation that can be used in the event of a power outage

Even if the entire region is blacked out due to a disaster, etc., water stored in the receiving water tank (300 ton as an effective capacity) can be supplied by installing water faucets for emergency use.

Guidance through easy-to-understand signs together with a friendly information counter; color, size, positioning of the signs were verified with the help of specialists in the dedicated pursuit of ease-of-understanding.

Sheets put up on the vaulted ceiling

Customers coming to AEON MALL cover a wide range from breast-fed children to the elderly, including persons with disabilities, pregnant women and foreigners. In order to have any customers spend time securely and comfortably, our company has implemented universal design, ahead of other commercial facilities. Even after that, we are working on continuous improvement from hardware and software aspects by regularly performing questionnaires for opinions from our customers.

Importance is especially placed on the comfort and ease-of-use of the toilets, wide and multifunctional "Everyone's Toilet", "Kids Toilet" designed specifically for children and toilets for ostomates are available.

Many benches and sofas are placed in the walkways for sitting when tired, and the priority seats for the handicapped and the elderly are provided.

The park ing lo t space only for handicapped persons is secured. The environment has been prepared so that people in need can definitely use the space such as giving-out dedicated remote controllers for use.

The main floor consists of elastic carpets that prevent legs from getting tired even walking for a long time alongside tiled flooring which allows ease-of-movement of wheelchairs and baby cars.

Management of hygiene and water qualityFood sanitation management is placed as the most important agenda in AEON MALL where many eating and drinking establishments have opened their stores, and our own strict rules have been set in order to secure the safety of our customers. We are trying to prevent oil and garbage from flowing out by obligating all eating and drinking establishments in periodic cleaning of the grease traps in their kitchens to adhere to effluent standards.

Conclusion of the disaster prevention agreementIn 44 shopping malls in Japan, we have concluded agreements to cooperate in disaster prevention activities with the local governments. In the event of an emergency, according to the situation in each region, each shopping mall is prepared to support the region as a site for taking countermeasures against disaster and escaping from danger, with the anchor store of AEON providing local residents with the necessities of life or the opening of the parking area as an emergency evacuation area.

Efforts towards further enhancement of safety19 shopping malls were damaged to part of buildings and equipment by the Great East Japan Earthquake last year. Based on this experience, In AEON MALL Fukutsu that opened f irst after the earthquake, efforts were made towards antiseismic and quake-resistant measures to further strengthen the safety and security of the customers and to ensure the quick recovery of functions in acting as a regional recovery site in the event of an emergency, while seeking to develop "disaster-resistant facilities".

Further enhancement of earthquake-resistant performance

We adopted the construction method of higher earthquake resistance in the ceil ings of various buildings. Furthermore, we increased earthquake resistance for facilities and equipment located on and in the ceiling. We are trying to improve safety performance if the worst-case scenario occurs through the adoption of lightweight film material for the vaulted ceiling at the top right of the building. We also adopted the water receiving tank where quake resistance and durability that are able to withstand an earthquake of similar size as the Great East Japan Earthquake had been considered.

Securing functions required to act as a recovery site in the event of a disaster

We try to maintain the function as one of regional recovery sites by putting

Disaster prevention drills

At AEON MALL i n wh i ch many customers gather, to prepare for earthquakes or f ire, we regularly perform disaster-prevention dril ls including evacuation guidance and fire-fighting, under the participation of specialty store staff. In addition, some malls function as disaster-prevention bases in the event of an emergency by storing drinkable water, portable toilets, huge tents "Balloon Shelter"used for emergency evacuations.

the highest priority to secure not only supply of power for the security system and supply of water, but also supply of power to the main control rooms of the disaster-prevention center and the management and administration office. In the event of a power outage, we will use power generation through solar panels in cooperation with emergency generators. In the event of

water shortage or power outage, we made the on-site sewage tanks able to change covers to disaster-purpose covers (sewage tanks for temporary toilets), and placed the temporary feed-water inlet to the water receiving tank, allowing the use of water for drinking purposes from the water receiving tank (effective volume of 300 tons).

Aquisition of Security Born from Ceaseless Pursuit of Safety


To achieve the true contributions expected by the people, it is necessary for us to stick to a region, deepen relationships to share problems and work hard to find solutions.

Continual contribution to the regional society

Use of the AEON HallThe "AEON Hall" bui l t within the shopping mall can be used as space for different purposes such as for the exhibition, recital and concert of the various bodies or circles. Depending on the shopping mall, the hall can also be used across a wide range such as for coming-of-age events, filing of an income tax return, and lecturing of drivers' license renewal.

Total 237,032,669 yen

5,678,130

138,532,468

37,984,660

11,783,071

22,711,940

3,614,299

16,728,101

Emergency donation to the 2011 Christchurch Earthquake victims in New Zealand26 Feb. 2011 to 10 Mar. 2011

Donation to the 2011 the Great East Japan Earthquake9 May 2011 to 26 Jun. 2011

Disaster relief funds for victims given to Thailand and Cambodia26 Oct. 2011 to 6 Nov. 2011Hugging Santa Clause christmas charity (The Japan Committee for UNICEF)27 Nov. 2011 to 25 Dec. 2011

24-hour television "Love Saves The Earth"30 Jun. 2011 to 28 Aug. 2011

Donation to the 2011 the Great East Japan Earthquake victims9 May 2011 to 26 Jun. 2011

Emergency donation to the 2011 Tohoku Earthquake and Tsunami victims12 Mar. 2011 to 31 Mar. 2011

(Unit: Yen)

Fund-raising activity result in FY2011(Amount of funds collected from customer in our shopping mall)

AEON MALL is proactively promoting contribution to regional communities including the efforts of AEON Group, AEON 1% Club and AEON Environment Foundation.

Examples of domestic and international contribution to the local community

Together with the Region

A shopping mall which grows together with regionAEON MALL is contributing in various ways to the st imulat ion of local economies. With the opening of a new shopping mall, much work is ordered to the local companies through the building constructor, and consideration has been taken to give one-third of the berths to local specialty stores. The opening of a new shopping mall brings in the employment of thousands of stable jobs resulting in increased tax revenue and population.

As a site of social contributionA s p a r t o f t h e g r o u p ' s s o c i a l contribution activities, fund-raising activities held with the cooperation of the customers by each shopping mall has given rise to massive results. Especially in FY2011, the year of the Great East Japan Earthquake resulted

in donations totaling about 188 million yen to support the disaster-struck areas. Many messages were sent from each area to the local governments of these disaster areas. Also, all shopping malls in Japan saw an increase in customers cooperating in donating blood in FY2011 for a total of 80,177 customers.

Taking beautiful regional environment into the futureAs part of the "Green & Green" activities ongoing since 1991, with the paricipation of the staff of the speciality shops, clean-up activities are performed of the pavements and parks around the shopping mall prior to opening.

Providing public servicesAt AEON Mall, not only do customers enjoy eating and shopping, but we provide highly public services to local residents such as banking, the post

office, medical institutions and an administrative services corner for the local government making this multifunctional complex shopping mall a one-stop solution for all.

ThailandIn 2011, Thailand saw record-breaking rain fall resulting in heavy flooding damage. In addition to the sending of financial aid in several installments, we sent approx. 400,000 bottles of 1.5L mineral water. To answer the request of the Royal Thai Embassy in Japan, we sent TOPVALU products (mineral water, porridge, cookies) worth about five million yen to the disaster-stricken areas by air.

IndonesiaIn July 2011, the AEON Environment Foundation initiated a three-year plan to plant mangrove trees in the green belt in the north of Jakarta, the capital of Indonesia. In addition to protecting the nearby residential areas and highways from disasters such as flooding, we aim for the regrowth of coastal areas through such planting activities. 14,000 trees were planted in the first activity, involving about 1,000 volunteers from Japan travelling to the area and together with local members.

VietnamIn cooperat ion wi th the People Council of Thua Thien Hue, we are involved in the support of constructing a school in Vietnam over a three-year plan. In March 2011, the opening ceremony for the school was held through the support f rom many people. From Japan, school students from elementary school to high school participated in a tour to the school and deepened ties with children at the school overjoyed at the completion of the school. We plan to support construction of 30 schools in the Thua Thien-Hue Province.

China (Tianjin)Just prior to the opening of AEON MALL Tianjin Zhongbei, we held the "AEON Hometown Forests Program", a tree-planting ceremony, in March 2012. About 1.350 members of the region's junior and medium-high

school students participated in the event and seedlings were planted within the site.

Reconstruction assistance of the disaster-stricken areasIn March 2012, AEON made public the "3.11 Promises of AEON" and pledged to fully support the reconstruction of the disaster-stricken areas toward “realizing a dream-inspiring future". As part of this determination, in the project "AEON - Linking Hearts" launched wi th labor and management coming together, we dispatched volunteers three times in March and April to the disaster-stricken areas around Rikuzentakata City in Iwate Prefecture where about 90 group employees and their families including those from our company provided operational support of the meeting place and support of the agriculture.



Iwate "Kizuna (Bond)" ConcertAEON MALL MoriokaMorioka City Iwate Prefecture

To bring back smiles on the faces of those who are under enormous influence from the earthquake, the local residents of Muraku and Morisekinoshita together with the shop companies of Morisekinoshita hosted a summer festival. About 3,000 people gathered at the venue, the western parking area and was able to be of some help to the reconstruction of the town.

"Leading to a smile" Muraku and Morisekinoshita Summer FestivaAEON MALL NatoriNatori City Miyagi Prefecture

Although Gunma Prefecture has many famous historical hot springs, harmful rumors spread following the Great East Japan Earthquake resulting in a decrease in tourists and massive damage to revenue. As a result, this shopping mall hosted a hot spring PR event in conjunction with the Gunma International Tourist Association. We were able to appeal the allure and assure the safety of the hot spring area to our customers.

Tourist association PR eventAEON MALL OtaOta City Gunma Prefecture

A flea market called "Heartful Market" was held in

the parking area of the shopping mall. We bought

8 wheelchairs from the profit collected as the shop

opening fee and donated the eight to 8 facilities. Not

only shop openers but also the customers and people

of concerned bodies were extremely happy.

Opening of a flea market & donation of wheelchairsAEON MALL Miyazaki

Miyazaki City Miyazaki Prefecture

A sales event was hosted with 29 stores centered in Mito City gathering to sell local products within the shopping mall. During this period, about 3,000 customers came with many of them stopping in front of the stores' specialty products. By providing the venue, we were able to contribute to the PR of the local shops.

Hosting a fair in tandem with regional storesAEON MALL MitouchiharaMito City Ibaraki Prefecture

A "Fried Chicken Festival" was held with the purpose of getting more people to know about this fried chicken culture held proudly by Oita Prefecture. A massive success, this festival, held for the 4th time drew shop owners wanting to showcase their skills from Nakatsu City and the surrounding cities and towns. Incidentally, the amount of fried chicken supplied of 1,076 kg broke the world record and was officially recognized in the Guinness Book of Records.

Fried Chicken FestivalAEON MALL SankoNakatsu City Oita Prefecture

An open space in a Neyagawa City child-raising support site "Tsudio-no-hiroba Yu" has been extremely well received by the children (aged 0 to 3) and their parents. Additionally, as part of measures to support the development of the next generation in Osaka Prefecture, we are asking for participating stores of "Maido Kodomo-demo Card" with the list of special features being posted on the home page as well as within the shopping mall.

Efforts in support of child-raisingAEON MALL NeyagawaNeyagawa City Osaka Prefecture

We performed PR activities and cooperated on the production of the

feature film, "Akane-iro No Yakusoku (PEIXINHO MÁGICO)" (release

in Spring 2012) set in Yamato-Koriyama City. Apart from using this

mall as the venue for child auditions and talk shows, staff from

specialty stores made appearances as extras. Additionally, this movie

was screened in advance at the cinema of this shopping mall with

over 12,000 people attending during the roadshow.

PR activities of the film "Akane-iro No Yakusoku (PEIXINHO MÁGICO)"

AEON MALL Yamato-Koriyama

Yamato-Koriyama City Nara Prefecture

In this shopping mall, throughout the year, a total of 1,118 specialty store employees participated in the cleanup activity of the surroundings performed once every month by each of our shopping. In October, we participated in the event of "Mission to Clean the Rivers and the Sea" hosted by the Ministry of Land, Infrastructure, Transport and Tourism, and cleaned up the banks of the Suzukagawa River together with the neighboring companies and residents.

Cleanup activity on the banks of the Suzukagawa RiverAEON MALL SuzukaSuzuka City Mie Prefecture

The culture, local industries and traditional arts bred from the deep

history of Okzaki City were exhibited, demonstrated and announced

in the public space of AEON Hall. At the same time as showing the

appeal of Okazaki City to customers who come from a wide area,

AEON Hall provides a place of announcement for those bodies that

are unable to get the opportunity to act and announce. In doing so,

we hope to donate to the development of Okazaki's culture.

Culture Festival

AEON MALL OkazakiOkazaki City Aichi Prefecture

7

2

1

354

8 9

10 11

6

Hosted by the Morino-ie Zoukei (art and design) Education Research Institute, the children are able to craft and draw pictures through which they tell of delight of crafting and joy of making things, and the spirit of helping one another can be nurtured through these activities by coming into contact with other people. Despite being held only once a month, this event is very popular with over 50 children participating each time.

"Asobi no Gakko" (School of Play)AEON MALL FujiideraFujiidera City Osaka Prefecture

8

10

1

4

2

3

511

6

7

9

AEON MALL across-the-country is performing a central role far over what is required as a commercial facility to the regional community through the support for various cultural activities of the citizens and traditional events such as the festivals of each region. We will introduce to you examples of an activity which came about through the cooperation of the region and the shopping mall.

Continual contribution to the regional society Together with the Region


We hosted a concert centering on wind-instrument music in cooperation

with junior high school students in the coastal areas of Iwate Prefecture

and junior high schools in and around Morioka City. Although, practicing

has not been sufficient due to the earthquake, junior high school students

from the Iwate Prefecture agreed to combine into a collective effort and

perform together. We will continue to host this event as part of the reconstruction support activities.


Opening Day Commercial Area (m2)

Parking(cars) Plant Trees Mall

EmployeesDisaster Prevention

AgreementAED

InstallationsBlood Donors

DisabledParking Lot

Ice ThermalStorage

SolarPower

EVCharger


Parking(cars)

Plant Trees MallEmployees

Disaster Prevention Agreement

AED Installations

Blood Donors

DisabledParking Lot

Ice ThermalStorage

SolarPower

EVCharger


Parking(cars)

Plant Trees MallEmployees

Disaster Prevention Agreement

AED Installations

Blood Donors

DisabledParking Lot

Ice ThermalStorage

SolarPower

EVCharger




AgreementAED


DisabledParking Lot

Ice ThermalStorage

SolarPower

EVCharger

AEON MALL Tsugaru Kashiwa

AEON MALL Shimoda

AEON MALL Akita

AEON MALL Morioka

AEON MALL Natori

AEON MALL Ota

AEON MALL Takasaki

AEON MALL Mitouchihara

AEON MALL Kawaguchi

AEONMALL Kawaguchi Maekawa

AEON MALL Hanyu

AEON LakeTown kaze

AEON MALL Musashi Murayama

AEON MALL Hinode

AEON MALL Yamato

AEON MALL Futtsu

AEON MALL Narita

AEON MALL Chiba Newtown

AEON MALL Kofu Showa

AEON MALL Takaoka

AEON MALL Hamamatsu Shitoro

AEON MALL Okazaki

AEON MALL Higashiura

AEON MALL Kisogawa

AEON MALL Suzuka

AEON MALL Aratama-bashi

mozo wondercity

AEON MALL Kusatsu

AEON MALL Kyoto Gojyo

Kyoto Family

AEON MALL Kyoto

AEON MALL Kashihara

Tohoku Area

Nara Family

AEON MALL Fujiidera

AEON MALL Neyagawa

AEON MALL Sakai-Kitahanada

AEON MALL Rinku Sennan

AEON MALL Tsurumi Ryokuchi

AEON MALL Itami

AEON MALL Kobe-Kita

AEON MALL Yamato-Koriyama

AEON MALL Kurashiki

AEON MALL Hiroshima-Fuchu

AEON MALL Hiroshima-Gion

Hiroshima Danbara Shopping Center

AEON MALL Niihama

AEON MALL Kochi

AEON MALL Fukuoka

AEON MALL Nogata

AEON MALL Chikushino

AEON MALL Sanko

AEON MALL Kumamoto

AEON MALL Uki

AEON MALL Miyazaki

AEON MALL Miyakonojo Ekimae

AEON MALL Omuta

AEON MALL Fukutsu

Otsu Shopping Plaza

AEON MALL Tianjin TEDA

AEON MALL Tianjin Zhongbei

Kinki Area

Chugoku Area

Shikoku Area

Kyushu Area

Overseas

Kanto and Koshin-etsu Area

Hokuriku and Chubu Area

Kinki Area

42,000

53,000

67,000

44,000

75,000

62,000

60,000

71,000

32,000

66,000

88,000

80,000

84,000

73,000

33,000

33,000

71,000

83,000

48,000

64,000

65,000

95,000

56,000

69,000

66,000

24,000

85,000

86,000

40,000

24,000

51,000

84,000

2,600

4,000

3,800

2,800

3,900

4,200

3,700

4,000

1,300

2,400

5,000

2,300

4,000

3,600

1,900

1,800

4,000

4,000

2,500

3,600

3,500

4,300

5,000

4,400

4,200

1,600

5,000

4,300

1,600

700

1,100

5,000

72,000

50,000

43,000

26,000

20,000

54,000

50,000

49,000

250

20,000

90,000

50,000

45,000

58,000

20,000

32,000

46,000

14,000

20,000

44,000

38,000

48,000

25,000

12,000

36,000

5,000

20,000

20,000

11,000

―

―

25,000

900

1,480

1,990

1,610

2,570

2,290

2,300

2,580

970

2,750

3,430

3,440

4,020

2,320

1,860

1,020

2,760

3,040

1,910

1,960

2,080

3,940

2,520

2,300

1,730

1,720

4,220

2,990

2,000

890

2,290

4,000

3

4

6

4

3

6

4

4

5

4

7

5

6

4

3

4

6

6

5

3

5

10

7

3

4

6

3

5

4

4

2

5

760

497

9,621

1,425

1,047

1,384

1,940

780

173

341

1,485

-

706

1,784

1,765

686

2,986

2,697

230

1,942

380

1,319

655

3,774

2,919

255

146

2,494

487

66

30

4,892

24

14

14

21

16

16

17

19

20

22

14

18

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

※2

○

○

○

○

○




AgreementAED


DisabledParking Lot

Ice ThermalStorage

SolarPower

EVCharger

81,000

20,000

29,000

71,000

77,000

54,000

57,000

60,000

74,000

82,000

81,000

57,000

29,000

71,000

59,000

83,000

62,000

76,000

36,000

71,000

70,000

77,000

33,000

70,000

63,000

7,000

79,000

75,000

88,000

2,000

600

700

2,800

4,300

2,100

2,600

4,000

4,200

4,700

4,300

2,800

800

3,400

3,100

5,200

3,400

3,600

2,500

4,500

3,300

4,000

1,700

4,800

3,500

600

3,000

2,500

3,700

300

―

3,200

13,000

66,000

12,000

30,000

56,000

20,000

70,000

64,000

20,000

―

35,000

23,000

30,000

39,000

20,000

36,000

50,000

50,000

56,000

8,000

20,000

27,000

―

8,000

8,000

10,000

4,260

790

810

3,070

2,530

2,340

2,500

2,320

2,520

3,530

3,030

1,980

640

1,630

2,370

2,700

1,960

3,570

760

3,100

1,030

2,490

950

1,610

2,290

240

1,000

2,000

2,000

2

3

3

5

5

5

4

7

4

7

4

5

1

3

6

6

4

6

3

3

2

6

3

3

3

2

―

―

―

304

528

107

690

1,022

461

756

795

1,123

6,810

1,319

643

―

1,014

3,066

1,373

1,958

1,580

735

1,185

180

3,071

778

1,013

―

―

―

―

6

11

10

12

14

17

16

25

6

10

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

※1

Nov. 1992

Apr. 1995

Sep. 1993

Aug. 2003

Feb. 2007

Dec. 2003

Oct. 2006

Nov. 2005

Apr. 1984

Nov. 2000

Nov. 2007

Oct. 2008

Nov. 2006

Nov. 2007

Dec. 2001

Sep. 1993

Mar. 2000

Apr. 2006

Mar. 2011

Sep. 2002

Aug. 2004

Sep. 2000

Jul. 2001

Jun. 2004

Nov. 1996

Mar. 2010

Apr. 2009

Nov. 2008

Mar. 2004

Nov. 1982

Jun. 2010

Apr. 2004

Aug. 2006

Jul. 2006

May. 2006

Aug. 2006

Jan. 2007

Jul. 2006

Nov. 2007

Aug. 2006

Nov. 2006

Nov. 2006

Oct. 2007

Oct. 2008

Sep. 2006

Nov. 2007

Apr. 2006

Aug. 2006

Aug. 2006

Mar. 2007

Feb. 2011

Dec. 2007

―

Mar. 2007

Jul. 2006

Aug. 2006

Aug. 2006

Feb. 2010

―

Oct. 2008

Set. 2010

Dec. 2006

―

Nov. 2010

AEON Beijing International Shangcheng Shopping Center

Mar. 1972

Dec. 1973

Mar. 1978

Oct. 2004

Nov. 2004

Oct. 2006

Oct. 2002

Nov. 2006

Mar. 2010

Sep. 1999

Mar. 2004

Apr. 2009

Sep. 2011

Jun. 2001

Dec. 2000

Jun. 2004

Apr. 2005

Dec. 2008

Dec. 1996

Oct. 2005

Nov. 1997

May. 2005

Dec. 2008

Mar. 2011

Apr. 2012

Oct. 1987

Nov. 2008

Oct. 2010

Apr. 2012

―

―

―

Sep. 2006

Sep. 2006

―

―

Oct. 2006

Mar. 2010

Aug. 2006

Apr. 2007

Sep. 2009

―

Aug. 2006

Sep. 2007

―

Aug. 2006

Apr. 2009

Feb. 2006

Oct. 2006

Nov. 2007

Sep. 2006

Nov. 2008

Sep. 2011

Mar. 2012

―

―

―

―

(excl. cinema bldg.)




AgreementAED


DisabledParking Lot

Ice ThermalStorage

SolarPower

EVCharger




AgreementAED


DisabledParking Lot

Ice ThermalStorage

SolarPower

EVCharger


Parking (cars) Plant Trees Mall


AgreementAED


DisabledParking Lot

Ice ThermalStorage

SolarPower

EVCharger


Parking (cars) Plant Trees Mall


AgreementAED


DisabledParking Lot

Ice ThermalStorage

SolarPower

EVCharger

AEON MALL Data Collection

Data in FY2012 of each shopping mall (as of May 2012)*1 Gross leasable area (store area for only AEON MALL Aratama-bashi)*2 Wind-power generation in AEON MALL Shimoda

AEON MALL Data Collection


Expenseamount

Amount incurred as environmental preservation measures.As a general rule, only for one year.

Expenditure for environmental preservation out of capital investments in depreciable assets.The effect spans long periods of time.

FY2010

FY2011

7,155 million yen

8,877 million yen

Period: February 21, 2011 to February 20, 2012 Scope: Within the applicable scope of ISO 14001 of AEON MALL Co., Ltd.

(Unit: Thousand yen)

Total

FY2010 FY2010 FY2011

Expenses

Year-on-year OutlineFY2011

Investments

Year-on-year

0

1,615

38,286

14,750

492,954

160,769

69,660

0

0

0

0

0

0

600

131,309

1,400

634,092

64,500

215,857

0

0

0

0

0

ー

37.1%

343.0%

9.5%

128.6%

40.1%

309.9%

ー

ー

ー

ー

ー

50,269

204,621

347,245

3,999,375

1,272

0

0

1,228,704

56,823

722,458

537,100

543,845

53,869

203,595

306,250

5,047,259

10,813

917

0

1,178,288

67,274

1,444,641

1,343,404

564,648

107.2%

99.5%

88.2%

126.2%

849.8%

ー

ー

95.9%

118.4%

200.0%

250.1%

103.8%

547,605 767,401 140.1% 7,154,614 8,876,636 124.1%

Investmentamount

0.3%7.0% 2.7%

0.1%17.1% 0.2%

90.0%

55.9%

56.9% 13.3% 16.3% 6.3%

17.2% 10.1% 7.6%

82.6%

0.7% 0.8%2.9% 4.8%

0.6% 0.1% 0.8%2.3% 3.4%

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

857,129

1,468,265

1,829,829

2,155,587

3,300,748

4,808,598

6,405,580

6,385,963

7,702,219

9,644,037

FY2010

FY2011

548 million yen

767 million yen

Introduction of environmental preservation materialsGlobal environmental preservation/Tree-planting activitiesFacility maintenanceResources/Energy conservations

Cost of environment-related research

Introduction of environmental preservation materials

Introduction of environmental preservation materials

Facility maintenance

Resources/Energy conservations

Waste disposal & recycling

Environmental management

Accident/Emergency prevention & response

Social contribution & Welfare-related

Solar power generation

LED lighting system

Fire extinguisher/Disaster prevention equipment

Cost of environment-related researchIntroduction of environmental preservation materialsGlobal environmental preservation/Tree-planting activitiesFacility maintenanceResources/Energy conservationsWaste disposal and recyclingEnvironmental managementAccident/Emergency prevention & responseSocial contribution & Welfare-related

(Thousand yen)

Note: Post-merger numerical values after the second half of FY2007

(1) Joint cost: As a general rule, the full amount is appropriated even if the cost joins with costs other than for the purposes of environmental objectives.(2) Personnel expenses: As a general rule, personnel expenses for AEON MALL employees are not appropriated. However, personnel expenses for "facility maintenance" and

"waste disposal & recycling" are appropriated.(3) Investments: Appropriated as investment in equipment and facilities to the reduction of environmental load occurring during the period. (Appropriated as expenses for the leasing

contract.) Appropriated as investment if the amount at the time implementation is clear for those items which have changed or has been transferred after implementation.(Ice thermal storage system, etc.)

(4) Depreciation and amortization: Depreciation and amortization are not recorded.

AEON 1% contribution, parking lot for the disabled, AED installations, etc.

Air pollution prevention, water pollution prevention, facility maintenance, etc.

Solar power generation, LED sign boards, response to electric vehicles, etc.

Waste disposal/management expenses, etc.

Changes in total cost of investments & expenses

by fiscal year

Research for the Large-scale Retail Store Location Law, traffic volume survey, environment assessment, etc.Recycled construction materials, eco-fire extinguishers, recycled OA paper, etc. Tree-planting ceremony, tree-farming ceremony, rooftop & wall greening, plant cultivation management, etc.

Crime/disaster prevention facilities, infectious disease prevention measure, etc.ISO activity promotion expense, education expense, information transmission expense, etc.

Ms. Yukiko FuruyaExecutive AdviserNippon Association of Consumer Specialists (NACS)

Graduated from Chuo University’s Faculty of Law Acquired the qualification of advisory specialist for consumers' affairs certified by the Prime Minister and Minister of Economy, Trade and Industry, in 1988. A member of NACS board of directors from 2004 to 2012,Current post in 2012Besides the above, is serving as a steering committee member of the round-table conference concerning Social Responsibility and as an outside committee member for companies.She has written books such as “Consumer-oriented management strategy”.

SR (Social Responsibility) Accounting Report for FY2011

Major breakdown of environmental preservation cost SR (Social Responsibility) Accounting Report for FY2011/Second Opinion

The Third Opinion

1. The relationship between town development and the people

I can well understand that your company is not only considering the opening of malls as a business but also as a move towards town development as a whole, as the focus of your efforts is on building a partnership with specialty stores as well as the developing a trusting relationship with the community. Furthermore, I think that your efforts in working on overseas training, global management training, etc. in order to nurture persons capable of performing on the global stage are useful in understanding a local sense of values and building a better relationship with the local staff. For the future, I hope that you will deepen your efforts to address social issues unique to the local community and contribute to town development on a regional scale. Securing functions as a reconstruction base in the event of an earthquake can be said to be an example.

2. "Five Pillars" for CSR ActivitiesAlthough it can be appreciated that you have set the five pillars based on ISO 26000 as responsibilities that every enterprise must carry out to accomplish for a sustainable society, it seems that the understanding of your CSR activities will deepen if you can substantiate in more detail why you are working on the content of these five pillars. Of course, the content of activities is explained in each item; however, I would recommend that your company explains how to work on these five pillars in the light of the fact that you have a significant influence over the local communities through the opening of shopping malls.

3. Relationship between each set of activities for the five pillars and your company's principles and policies

You are making significant effort in relation to the five pillars. I hope that you will make further effort in working in connection with your company's principles and policies. Taking "From the Local Communities to the Earth, Promoting Environmental Preservation" as an example, you are making quite a lot of efforts. However, because neither the relationship with "AEON MALL Environmental Policy" nor the progress situation can be seen, I think that you had better visualize various contributions to "Creating an environment for shopping malls surrounded by greenery" so that which of your contributions is corresponding to your efforts in what kind of regional issues can be seen.

4. SR Accounting ReportAs introducing the SR accounting system and grasping the costs of environmental preservation activities and the social contribution activities quantitatively will lead to the promotion of the CSR management, I hope that your company will make continuous efforts. However, further study would be required about which items should be reported. In order to further develop your CSR as a challenge through your core business, I look forward to your study on issues for a sustainable society through communication with your stakeholders.

We at AEON MALL grasp the costs for environmental preservation activities and social contribution activities by using the SR accounting system and use it as one of the indices for CSR management. In fiscal year 2011, the total amount of investments and expenses was about 9,644 million yen which was the highest amount ever.With regards to investments, we have appropriated about 3.5 times more the amount compared to the previous year for environmental preservation activities centering on outdoor facility planting,

wall greening, and biotopes, and also about 3 times more the amount for installation of LED lights. With regards to expenses, we have worked on further energy conservation since the Great East Japan Earthquake, and have appropriated about 5,000 million yen for facility maintenance and resources/energy conservations through the systematic control of air conditioning equipment and installation of moisture mist spraying equipment to be used in the summer. Concerning disaster and crime prevention, about 1,444 million yen

has been appropriated for equipment review and education enhancement in the wake of the earthquake disaster.Moreover, the cost of repairing and maintaining the solar power generation system which was actively implemented is now on the increase. With regards to social contribution activities, about 564 million yen has been appropriated to carrying out thorough maintenance of the parking lot used for disabled people in addition to our efforts for earthquake disaster reconstruction assistance.


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