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FY2012Presentation Material

April 11th, 2013Aeon Co., Ltd.

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FY12 Financial Result

33

Achieved record-high operating revenue, ordinary income and net income

Achieved record-high operating revenue, ordinary income and net income

FY12 Financial Result

（bil. yen） FY11 FY12 yoy chg.(FY11)

yoy chg.(FY10)

Operating Revenue 5,223 5,685 108.8％ 111.2％

Operating Income 198 190 ▲7 +15Ordinary Income 212 212 +0 +30

Net Income 66 74 +7 +15

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Business Segment Information

（bil. yen）Operating Revenue Operating Income

2013/2 yoy % chg. 2013/2 yoy chg.

GMS 2,664 101.9% 46 ▲9

SM 1,480 121.1% 21 ＋0

Strategic Small Size Store 241 113.4% 4 ▲2

Financial Services 194 115.9% 33 ＋11

SC Development 203 118.5% 42 ＋2

Service 343 109.9% 19 ＋0

Specialty Store 350 110.0% 6 +0

ASEAN 103 118.6% 6 ▲0

China 112 110.0% ▲1 ▲4

Total 5,685 108.8% 190 ▲7

• All business segments achieved operating revenue increase

• Financial services and SC development increased profit due to structural reform

• GMS business reported decline in profit

• Overseas business reported decline in profit due to investment for growth

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Progress of Group Structural Reform

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Financial Service Business Reform

Aeon Financial Service Co., Ltd. was established on April 1, 2013, with integration of businesses in Financial Services

Aeon Financial Service Co., Ltd. was established on April 1, 2013, with integration of businesses in Financial Services

0.5

0.7

0.9

1.1

1.3

1.5

1.7

1.9

2.1

12/4

12/5

12/6

12/7

12/8

12/9

12/10

12/11

12/12

13/1

13/2

13/312/Apr 12/May 12/Jun 12/Jul 12/Aug 12/Sep 12/Oct 12/Nov 12/Dec 13/Jan 13/Feb 13/Mar

200

100

Aeon Financial Service（ex-Aeon Credit Service）

Nikkei AverageStock price as of Apr 2, 2012＝100

Stock PerformanceStock Performance

Announcement of integration of financial service business

Integration of ACS and Aeon Bank

Establishment of bank holding company

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SC Development Reform

Integration of SC Development business will be completed in FY13Accelerate growth by establishing REIT

Integration of SC Development business will be completed in FY13Accelerate growth by establishing REIT

FY2011FY2011 FY2012FY2012 FY2013FY2013

Integrate salespromotion

Integrate salespromotion

Integratetenant association

Integratetenant association

Integratedevelopment

function

Integratedevelopment

function

Integrateleasing function

（PM）

Integrateleasing function

（PM）

REITREIT

Unify SC name to“Aeon Mall”

Unify SC name to“Aeon Mall”

Group-wide promotion with 120 SC and 8,000 tenant companies

Accelerate store opening by centralization of property information and integration of organization

Accelerate growth by completing business integration and establishing REIT

Accelerate growth by completing business integration and establishing REIT

8

GMS Reform （Comparison with Industry）

Same Store SalesSame Store Sales

Aeon Retail kept better same store sales than industry averageGMS segment turned around and 4Q operating income increased YOY

Aeon Retail kept better same store sales than industry averageGMS segment turned around and 4Q operating income increased YOY

DecSep Oct Nov Feb2013/Jan

‐6.0

‐5.0

‐4.0

‐3.0

‐2.0

‐1.0

0.0

1.0

2.0

3.0

4.0

100

（％）

Mar

Aeon Retail

CVS

GMS・SM

103.6%

Major Speciality Stores（Major 5 companies）

Major Speciality Stores（Major 5 companies）

Aeon RetailAeon Retail

9

GMS Reform （Purpose of Reform）

Reform for specialization is a key to GMS business growthReform for specialization is a key to GMS business growth

Sales performance for past 10 yrsSales performance for past 10 yrs

主要ＧＭＳ各社 6.6 tri.

1.7tri.

0.9 tri.

5.9 tri.

2.0 tri.

2.0 tri.

→

→

→

89%

119%

222%

Major GMS totalMajor GMS total

FY2002 FY2011 Growth %

GMS Reform （Specialization・Refurbishment）

GMS evolves into group of specialized storesGMS evolves into group of specialized stores

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Preceding category（Former Aeon Co., Ltd.）

Preceding category（Former Aeon Co., Ltd.）

First category（Transition to Aeon Retail～now）

First category（Transition to Aeon Retail～now）

Second category（FY2014~）

Second category（FY2014~）

R.O.UR.O.U

Aeon BakeryAeon Bakery

SELF+SERVICESELF+SERVICE

Green BoxGreen Box

others

others

Already deployed to GMS

Already deployed to GMS

Up-front investment underway

Up-front investment underway

Specializationto be completedSpecialization

to be completed

Expand specialization for total GMS

Expand specialization for total GMS

Aeon BikeAeon Bike

Aeon LiguorAeon Liguor

Topvalu CollectionTopvalu Collection

Double FocusDouble Focus

Pandora HousePandora House

GMS Reform （TOPVALU, Aeon’s PB ）

Strengthen inventory control and maximize gross income by offering three distinct range of TOPVALU merchandiseStrengthen inventory control and maximize gross income by offering three distinct range of TOPVALU merchandise

FY12achievement

FY12achievement

ChallengeChallenge

• TOPVALU share for AeonRetail: 19.7% （+4.7P）

• Sales of TOPVALU（Group Total）

¥ 682 bil

• TOPVALU share for AeonRetail: 19.7% （+4.7P）

• Sales of TOPVALU（Group Total）

¥ 682 bil

FY13 policyFY13 policy

• Maximize gross incomeby optimizing PB/NB mix

• Maximize gross incomeby optimizing PB/NB mix

Strengthen inventory control furtherStrengthen inventory control further

Achieve best mix of gross income with three range of TOPVALU

Achieve best mix of gross income with three range of TOPVALU

1

2

11

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Progress of Mid-Term Management Plan（4 Shifts）

• Acquired Carrefour Malaysia in Oct, 2012（changed its name to AEON BIG Malaysia）

• Became No.2 retailing company in Malaysia

• Acquired Carrefour Malaysia in Oct, 2012（changed its name to AEON BIG Malaysia）

• Became No.2 retailing company in Malaysia

13

Shift to Asian Markets

AEON BIG RIVERWALK VILLAGEAEON BIG RIVERWALK VILLAGE

Qingdao AEON（Marinacity）Qingdao AEON（Marinacity）

• 9 GMS stores、4 SM stores、29 Small size stores

• New store opening and M&A brought 68 stores to total 164 stores

• 9 GMS stores、4 SM stores、29 Small size stores

• New store opening and M&A brought 68 stores to total 164 stores

New StoresNew Stores

M&AM&A

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First store in Indonesia（Image）

First store in Indonesia（Image）

Shift to Asian Markets

15

# of stores increased in Tokyo area（Tokyo and adjacent 3 prefectures）# of stores increased in Tokyo area（Tokyo and adjacent 3 prefectures）

+113

+263

+610

+347Daiei

Peacock

2011

Number ofstores

Number ofstores

2012

1,767 2,030 2,377

2012（with M&A）

Shift to Urban Markets

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Develop senior-friendly store

Develop senior-friendly store

Grow membershipGrow membership

Develop senior-friendly product

Develop senior-friendly product

• Opened AEON Funabashi SC as model store

• Existing stores to be more senior-friendlyExpand rest spaceEasy-to-read display, 7 am opening

• Issue “Grand Generation (G.G)” Aeon Card and G.G WAON e-money

• Senior membership expanded to 8.43 million

• Expand line-up of small portion package and “ready meal” ready-made food

• Expand line-up of Japanese delicatessen by utilizing ORIGIN’s know-how

Shift to Senior-oriented Markets

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Store-based delivery serviceStore-based delivery service

Prefecture-wide delivery servicePrefecture-wide delivery service

Internet SupermarketServicing Area

Internet SupermarketServicing Area

Prefecture-wide delivery service expanded to 29 prefectures

Prefecture-wide delivery service expanded to 29 prefectures

Shift to Digital Markets

Newly-consolidated companies

MarunakaMarunaka

AEON EVERY（ex-Tesco Japan）

AEON EVERY（ex-Tesco Japan）

AEON BIG Malaysia（ex-Carrefour Malaysia）

AEON BIG Malaysia（ex-Carrefour Malaysia）

• Utilize Aeon’s strength including TOPVALU, WAON and joint promotion

• In FY12 Marunaka earned operating income of ¥6.9 bil, exceeding official budget of ¥5 bil.

Consolidated on Dec 2011Consolidated on Dec 2011

Consolidated onNov 2012Consolidated onNov 2012

Equity-method affiliate on Jan 2013Equity-method affiliate on Jan 2013

• Introduced AEON Malaysia’s fresh product, enhanced promotion, resumed investment in refurbishment, and introduced Aeon’straining program

• Sales started to turned around and increased yoy in Feb

• Introduced TOPVALU

• Going to realize synergy by introducing Aeon’s fresh product/delicatessen, WAON, and group-wide system

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19

FY13 Financial Plan

202020

FY13 Financial Plan

Aim for record-high results for every levelOperating Revenue ¥6 trillion、Operating Income over ¥200 billion

Aim for record-high results for every levelOperating Revenue ¥6 trillion、Operating Income over ¥200 billion

（bil. yen）2013/2Actual

2014/2Plan yoy chg.

Operating Revenue 5,685 6,000 105.5％

Operating Income 190 200～210 +9～19

Ordinary Income 212 215～225 +2～12

Net Income 74 75 +0

2121

Consolidated Interest-bearing Debt

Keep D/E Ratio（excl. finance）below 0.9 timesKeep D/E Ratio（excl. finance）below 0.9 times

2014/2Budget

¥920bil. ~ ¥1 tri.

0.9 X

2015/2Target

2016/2Target

0.9 X

2013/2Actual

4.0 X4.9 X

~0.9 X

~4.0X

Interest-bearing debt (Excl. Fin. Business)

Interest-bearing debt (Excl. Fin. Business)

Interest-bearing debtfor Fin. business

Interest-bearing debtfor Fin. business

DE Ratio(Excl. Fin. business)

DE Ratio(Excl. Fin. business)

Interest-bearing debtover EBITDA

Interest-bearing debtover EBITDA

¥718 bil.overseas

domestic~ ¥550 bil.

2222

Continue investing for growth while keeping financial prudenceContinue investing for growth while keeping financial prudence

FY13 Key Financial Indices/Cash Flows

2012/2Actual

2013/2Actual

2014/2Budget

ROIC 5.4 ％ 4.6 ％ 5.0 ％～

ROE 7.3 ％ 7.6 ％ 7.0 ％～

D/E Ratio excl. Fin. business（incl. Fin. business）

0.9 x（1.4 x）

0.9 x（1.6 x）

0.9 x（～1.4 x）

（Pro forma）Operating C/F (*) ¥ 265.2 bil ¥ 274.3 bil ¥ 280.0 bil

Investments ¥ 362.1 bil ¥ 378.3 bil ¥ 400.0 bil

Interest-bearing Debt（excl. Fin. business） ¥ 812.1 bil ¥ 920.9 bil ～ ¥ 1,000 bil

* （Pro forma）Operating C/F：Operating Income＋Depreciation －Corporate and other Tax

2323

Forecast to raise dividend to ¥26 per year （Interim ¥13, Year-end ¥13）Forecast to raise dividend to ¥26 per year （Interim ¥13, Year-end ¥13）

Annual dividend

Interim Year-end Total

2012/2 - ¥ 23 ¥ 23

2013/2 ¥ 12 ¥ 12 ¥ 24

2014/2（Forecast）

¥ 13 ¥ 13 ¥ 26

FY13 Dividend Forecast

Disclaimer

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This material contains projections based on the assumptions, forecasts and plans on futures. Due to the risks and unpredictable factors such as the environmental change of world economy and currency fluctuations, the actual results could be different from the described projections.