Working to Become a “Super China Hong Kong

Thailand Vietnam ●13 ●166 ●1

●3

●

●5 ●5 ●24 ●5 ●16 ●5 ●1

●

●

● ●

Taiwan ●11 ●2

India ●1

Cambodia

●

●1

●

●

Japan ●538 ●1,282 ●104 ●127 ●2,037 ●245 ●3,265 ●175 ●1,383 ●2,657

The Philippines ●331

Malaysia ●23 ●4 ●30 ●17

●

South Korea ●1,429

●

● ●

●24 ●3 ●14 ●24 ●7 ●5 ●3

Global

Indonesia ●5

■Aeon’s Overseas Operations By recognizing that Japan belongs to a single market with the rest of Asia, Aeon is striving to lay down roots in each region in order to provide stores, products, and services tailored to the needs of local communities. Among the ASEAN countries, Aeon has expanded its financial service business first to Malaysia and Thailand, followed by Vietnam and Indonesia, with plans to start credit business in the Philippines, Cambodia and India. We also produce and manufacture TOPVALU private brand products in China, Thailand and Vietnam, etc. Besides ongoing business expansion in these areas, we are also contributing to the revitalization of the local economy through improvement in employment and technical development.

■Aeon’s Investment Plan ●General Merchandise Stores ●Supermarkets ●Discount Stores ●Home Centers ●Convenience Stores ●Other Retail Stores ●Specialty Stores ●Financial Services ●Service Business ●Drugstores  Total ●Liaison Offices

590 1,307 104 127 3,811 269 3,305 401 1,410 2,657 13,981

*The number of stores and liaison offices, including consolidated subsidiaries and equity method affiliates, as of the end of February 2011

[FY 2007-2009]

[FY 2011-2013]

China and ASEAN Revitalization of large-scale stores

8％

15％ Small size stores

16％

China and ASEAN

23％

New stores, IT, etc.

New stores, IT, etc.

61％

Revitalization of large-scale stores

19％

37％

Small size stores

21％ Aeon will focus investment on the expansion of China and ASEAN Business, revitalization of large-scale stores (GMS and Shopping Center Development Business), and development of small size stores (supermarkets, strategic small size stores, and drugstores).

Aeon now finds itself at a historic turning point as Japan faces various domestic issues, including the impending population decline and a super-aging society, as well as changes in economic and industrial structure. Aeon believes this period of change presents an opportunity for dramatic growth over the next decade. Thus, the Group formulated a three-year medium term management plan in October 2010 to commence in fiscal 2011. Under this plan, Aeon will pursue further development through the implementation of a new growth strategy and a management foundation capable of supporting sustained growth. The growth strategy focuses first on capturing new opportunities in the fast-growing and emerging “Asian markets,” where an expanding middle class presents Aeon with an excellent opportunity for growth. Viewing Asia as one cohesive market, Aeon aims to accelerate business development in the region by mobilizing all available Group resources. Second, the strategy focuses on tapping into the “urban market,” which grows in tandem with the urban-dwelling population. Aeon plans to develop and operate businesses tailored to the demographics and other characteristics of each particular market, and carry on with developing business opportunities by opening outlets that meet the needs of local communities in major cities across Asia by using the expertise Aeon has accumulated in Japan. Third, Aeon will shift toward meeting the needs of the “senior market” in Japan and the rest of Asia by taking the initiative to develop private brand products for seniors,

-regional Retailer’’ Connecting the Countries of Asia

senior-friendly floor plans and stores, and new services. In an effort to capture new growth opportunities in the Asian market, urban market, and senior market, Aeon is implementing management structure reforms to establish regional headquarters for Japan, China, and the ASEAN region. At the same time, Aeon is accelerating efforts to restructure Group businesses in hopes of maintaining holding company functions, enhancing competitiveness, and maximizing synergies. While making strides to streamline, reorganize, and unify the functions of Aeon Co., Ltd., a pure holding company, and the 12 individually-managed businesses, Aeon is working to establish a business structure under which each business can focus on its specific duties, thereby increasing profitability and becoming market leaders in their respective fields of expertise. To better compete in the global market, the Japanese retail industry must work harder to elevate its social status. Although personal consumption makes up over 60% of GDP, Japan has in the past traditionally placed priority on developing the export and manufacturing industries rather than promoting domestic consumption, which has resulted in retail market that is much more fragmented compared with that in Western countries. As Japan’s economy matures and our nation becomes less dependent on protectionist policies, a manufacturing-oriented stance, and the activities of exporting companies, the need for continued industrialization and an improved standing for retail industry should increase significantly.

Local

Motoya Okada President

In anticipation of these social changes, Aeon has since the early stages focused on how the retail industry needs to develop, has continued to launch restructuring initiatives, and to date has merged with over 100 companies to help drive the evolution of the Group’s operations. Perceiving this period of change as an opportunity for growth, Aeon will strive to further establish the retail industry and expand into the global market as a world class retailer. By 2020, we plan to achieve a profit ratio of one-to-one in the domestic and international markets. Aeon believes that the prosperity of the retail industry, built upon our three pillars of community, people, and peace, consists of the peace and well-being of the local community. Through its dedication to pursuing peace and prosperity, Aeon has grown together with local communities to become embedded in the infrastructure

of everyday life. This has been achieved under the guidance of Aeon’s unchanging principles of “pursuit of peace, respect for humanity and contribution to local communities, always with the customer’s point of view as its core.” Aeon believes that people represent our force that will fuel new growth. Guided by its unchanging “Customer-First” philosophy, Aeon will work toward future corporate growth by drawing on the strengths of each and every employee and strive to become Asia’s leading retailer in both name and reality.

JUSCO Tebrau City Shopping Centre (Malaysia)

AEON MALL TIANJIN TEDA (China)

Principle

Pursuit of peace, respect for humanity and contribution to local communities, always with the customer’s point of view as its core

Okadaya, one of the forebears of Aeon, was founded in 1758. Throughout the generations since its establishment, the philosophy of listening to customers and looking at business from the customers’ perspective has continuously guided Aeon’s efforts toward innovation. As a super-regional retailer, Aeon will continue to embrace our “Customer-First” philosophy to guide our efforts in contributing to the peace and prosperity of Asia.

Peace

Our customers

Peace

People

Community

AEON is a corporate group whose operations are dedicated to the pursuit of peace through prosperity. AEON is a corporate group that respects human dignity and values personal relationships. AEON is a corporate group rooted in local community life and dedicated to making a continuing contribution to the community.

The Retail Business is a Symbol of Peace Although the company store was burned down in an air raid during World War II, Okadaya reopened for business in March of the year after the end of the war. In July, Okadaya issued a leaflet with the slogan “Developing out of the ashes” to announce its first major postwar sale, marking the company’s fresh new start. Some customers held the leaflet in their hands and tearfully exclaimed, “This tells me that peaceful times have finally arrived.” Seeing this, Takuya Okada, President of Okadaya (present Honorary Chairman and Advisor of Aeon Co., Ltd.), was convinced that “without peace, people cannot shop and businesses cannot survive,” a notion that gave rise to one of Aeon’s principles – “The retail business is a symbol of peace.” Aeon continues to dedicate efforts to the pursuit of peace through various initiatives, including providing aid to disaster-affected areas in Japan and around the world, supporting projects to build schools in Asia, and promoting the international exchange of human resources.

Community

●The leaflet announcing Okadaya’s resumption of business in a 132.23 m2 complex in 1946 ●Donation drive to support recovery efforts after the Great East Japan Earthquake

Education is Vital to the Well-Being

People

The retail business is a people’s business that values the development of personal relationships through daily interactions with customers. Aeon believes that enhancing employee skills and knowledge leads to higher customer satisfaction, while the personal growth that education can unlock is of the utmost importance to promoting employee well-being. Since the establishment of the “Okadaya Management College” in 1964, Aeon has expanded its education system to include in-house certification programs such as the “Fresh Fish Master” and “Bicycle Advisor” to develop specialized personnel, and training programs such as the “Supporters of People who Suffer from Dementia” and “Service Care Workers” to ensure a comfortable shopping environment for all of our customers. Our overseas locations also offer educational programs for local employees tailored to the particular needs of local communities. ●Sushi Master training in China ●Bicycle Advisor

Contributing to the Local Community through Business The retail business is rooted in and grows together with the local community. Aeon shopping centers support and enhance the everyday lives of people in the community by offering not only products, but the services of government facilities, banks, clinics, movie theaters, and more. Aeon also works as a member of the community to revitalize the local economy and culture through social contribution initiatives, including the “Aeon Happy Yellow Receipt Campaign,” “Clean and Green Activities,” and by participating in and hosting local festivals. ●Aeon hosted the Kochi Yosakoi Festival ●Clean and Green Activity ●Government facility branch

12 Businesses and Shared Function Companies Aeon is a corporate group which consists of Aeon Co., Ltd., a pure holding company, as its core, and approximately 180 national and international Group subsidiaries. Through these 12 businesses and shared function companies, Aeon aims to improve its competitive position and raise the corporate value of the group as a whole.

General Merchandise Store (GMS) Business Supermarket Business Discount Store Business Strategic Small Size Store Business

AEON CO., LTD.

Drugstore & Pharmacy Business

Raising the corporate value of the group as a whole

General Merchandise Store (GMS) Business

Supermarket Business

Offering an attractive shopping environment to meet diversified customer needs

As Japan’s No. 1 supermarket chain

With operations based throughout Japan from Hokkaido to Okinawa, GMS operations are at the core of Aeon shopping centers. GMS offers clothing, food, and household goods to meet our customers’ needs through sales floors with lifestyle-enhancing ideas. ○AEON Retail Co., Ltd. ○AEON Hokkaido Corporation ○SUNDAY CO., LTD. ○AEON KYUSHU CO., LTD. ○Bon Belta Co., Ltd. ○AEON RYUKYU CO., LTD.

Financial Service Business Shopping Center Development Business Service Business Specialty Store Business

ASEAN Business China Business

Shared Function Companies

○Maxvalu Chubu Co., Ltd. ○Maxvalu Nishinihon Co., Ltd. ○Maxvalu Tohoku Co., Ltd. ○Maxvalu Tokai Co., Ltd. ○Maxvalu Hokkaido Co., Ltd. ○The Maruetsu, Inc. ○Inageya Co., Ltd. ○KASUMI CO., LTD. ○Belc Co., LTD. ○AEON KIMISAWA CO., LTD． ○KOHYO CO., LTD. ○MAXVALU KANTO CO., LTD. ○MAXVALU KITA TOHOKU CO., LTD. ○Maxvalu Kyushu Co., Ltd. ○MAXVALU CHUKYO CO., LTD. ○MAXVALU NAGANO CO., LTD. ○MAXVALU HOKURIKU CO., LTD. ○MAXVALU MINAMI TOHOKU CO., LTD. ○AEON RYUKYU CO., LTD. (Maxvalu)

●Creating a new

group growth model ●Reorganizing our

business structure

Digital Business

With approximately 1,300 stores operated by 19 companies throughout Japan, sales from supermarket operations exceed 1.8 trillion yen. Our supermarket business makes effective use of group synergies while earning the trust of customers and rooting our businesses in the local community.

●Further

strengthening the company policy of “centralization and delegation”

Discount Store Business

Strategic Small Size Store Business

Offering greater convenience and low prices through low-cost operations

Serving everyday life at neighborhood stores

Our Discount Store Business rises to the challenge of improving the quality, price and lineup of everyday essentials and achieving low-cost operations to provide customers with genuinely low prices and high levels of convenience. ○AEON Retail Co., Ltd. ○AEON Hokkaido Corporation ○AEON KYUSHU CO., LTD. ○AEON RYUKYU CO., LTD. ○AEON SUPERCENTER Co., Ltd. ○Maxvalu Chubu Co., Ltd. ○Maxvalu Nishinihon Co., Ltd. ○Maxvalu Tohoku Co., Ltd. ○Maxvalu Tokai Co., Ltd. ○Maxvalu Hokkaido Co., Ltd. ○Maxvalu Kyushu Co., Ltd. ○MAXVALU NAGANO CO., LTD. ○MAXVALU MINAMI TOHOKU CO., LTD.

(Aeon Supercenters, Mega Marts, and The Big are operated by the above companies.)

This business serves our customers’ daily lives with over 3,500 convenience stores operated in Japan and other Asian countries, small-sized supermarkets, and specialty stores selling boxed lunches and ready-made meals. ○MINISTOP CO., LTD. ○ORIGIN TOSHU CO., LTD. ○AEON Retail Co., Ltd.

(My Basket stores, A Colle) ○RECODS Co., Ltd.

Drugstore & Pharmacy Business

Financial Service Business

Specialty Store Business

Digital Business

Supporting our customers’ health through specialized expertise and a diverse product lineup

Offering comprehensive financial services with retail expertise

Supporting the unique lifestyle of every customer

Interacting with customers through new multiple channels

Through alliances with nationwide drugstores and dispensing pharmacies, this business is engaged in developing new healthcare products and services and supporting the training of pharmacists who will play a role in providing community healthcare. We also focus on creating community healthcare stations through the development of “Recods” stores and other new format stores that combine the benefits of drugstore specialization with convenience-store amenities.

Our Financial Service Business provides global financial services centered on the credit card business in Japan and other countries in Asia. This business is also engaged in efforts to achieve greater customer satisfaction by offering financial services that take advantage of the unique characteristics of retail operations, such as full retail-featured banking at Aeon Bank and Aeon’s WAON e-money.

Through partnerships with companies both Japanese and foreign, this business operates specialty stores dealing in a wide range of products that include fashion, sporting goods and books. These stores can be found in shopping centers, as stand-alone stores, in station buildings, and in various other types and locations.

This business offers products and services through online shopping, online supermarkets and other online sources. Mail-order retailing is also offered via catalogues and TV. Responsibilities also include managing the e-commerce and mail order business of the Group as a whole.

○AEON CREDIT SERVICE CO., LTD. ○AEON CREDIT SERVICE (ASIA) CO., LTD. ○AEON THANA SINSAP (THAILAND) PLC. ○AEON CREDIT SERVICE (M) BERHAD ○AEON BANK, LTD.

○GFOOT CO., LTD. ○COX CO., LTD. ○Taka:Q Co., Ltd. ○Abilities JUSCO Co., Ltd. ○AEON FOREST CO., LTD. ○AEON BODY Co., Ltd. ○Talbots Japan Co., Ltd. ○Branshes Co. Ltd. ○PETCITY CO., LTD. ○MIRAIYA SHOTEN CO., LTD. ○Mega Sports Co., Ltd. ○MEGA PETRO Co., Ltd. ○LAURA ASHLEY JAPAN CO., LTD. ○AT Japan Co., Ltd. ○Claire’s Nippon Co., Ltd.

○AEON VISTY CO., LTD. ○Digital Direct Corporation

○CFS Corporation ○TSURUHA HOLDINGS Inc. ○KUSURI NO AOKI CO., LTD. ○GROWELL HOLDINGS CO., LTD. ○Medical Ikkou Co., Ltd. ○TAKIYA Co., Ltd. ○Welpark Co., Ltd. ○Shimizu Drug Co., Ltd. ○AEON Retail Co., Ltd. (health and beauty care) ○AEON Hokkaido Corporation (health and beauty care) ○AEON KYUSHU CO., LTD. (health and beauty care) ○AEON SUPERCENTER Co., Ltd. (health and beauty care) ○AEON RYUKYU CO., LTD. (health and beauty care)

Shopping Center Development Business

Service Business

ASEAN Business

China Business

Transforming from stores that just sell “goods,” into producers that create various “events”

Creating a comfortable environment at our shopping centers

Operating retail stores and financial services in ASEAN countries

Mobilizing all available group resources to operate businesses in China

Our Service Business provides various services to ensure that our customers enjoy the time they spend at our shopping centers. Efforts are also being made to improve facility services to ensure our customers’ safety and comfort.

The ASEAN Business operates 27 stores in Malaysia located mainly in shopping centers on the west coast of the Malay Peninsula, and 13 supermarkets in Bangkok, Thailand. A liaison office was also established in Vietnam in 2009.

With shopping centers and GMS at the core of its operations, the China Business utilizes store development and operational expertise cultivated in Japan to operate financial businesses, services, specialty stores and a wide range of other businesses in China.

○AEON DELIGHT CO., LTD. ○AEON Fantasy Co., Ltd. ○ZWEI CO., LTD. ○AEON Eaheart Co., LTD. ○AEON CINEMAS CO., LTD. ○JUSVEL CO., LTD. ○Reform Studio Co., Ltd. ○Warner Mycal Corporation

○AEON Co., (M) Bhd. ○AEON (Thailand) CO., LTD.

○AEON Stores （Hong Kong） Co., Ltd. ○AEON South China Co., Ltd. ○Beijing AEON Co., Ltd. ○Guangdong JUSCO Teem Stores Co., Ltd. ○Qingdao AEON Dongtai Co., Ltd.

In Japan and overseas, our Shopping Center Development Business is developing and managing shopping centers that coexist in harmony with the local community. Efforts are being made to improve our services and facilities in response to the changing times and diversifying customer needs. ○AEON Mall Co., Ltd. ○LOC DEVELOPMENT CO., LTD.

Aeon’s Pursuit of Group Synergies

Shared Function Companies that Support the Group’s Operating Companies Aeon is working to improve operating efficiency and achieve systemization by making optimal use of the shared services and infrastructure used by its businesses. In 2008, the following shared function companies launched full-scale operations: Aeon TOPVALU, Co., Ltd., which controls the entire process from development through materials procurement, production and marketing for “TOPVALU” private brand products; Aeon Global Merchandising Co., Ltd., which oversees procurement for the Group; and Aeon Global SCM Co., Ltd., which oversees Group-wide distribution and inventory management using its own distribution network across Japan. The launch of these shared function companies has contributed to economies-of-scale-driven cost reduction. Aeon is also stepping up efforts to achieve efficiency in operations beyond its business domain by establishing shared function

companies that streamline back office services of the Group companies and its stores, develop IT system, and implement one-to-one marketing techniques such as mobile-oriented sales promotion and customer management.

Group Shared Function Taking advantage of the Group’s economies of scale This business is responsible for maximizing group synergies and reducing costs by streamlining common Group functions in areas such as product procurement, distribution, and IT. ○YAMAYA CORPORATION ○AIC Inc. ○Aeon Integrated Business Service Co., Ltd. ○AEON AGRI CREATE Co., Ltd. ○AEON GLOBAL SCM CO., LTD. ○AEON GLOBAL MERCHANDISING CO., LTD. ○AEON TOPVALU CO., LTD. ○AEON Bakery Co., Ltd. ○AEON MARKETING CO., LTD. ○Cordon Vert CO., LTD. ○Research Institute for Quality Living Co., Ltd. ○AEON FOOD SUPPLY Co., Ltd. ○Tasmania Feedlot Pty. Ltd.

WAON WAON e-money has shown steady growth since its introduction in April 2007, with a cumulative total of approximately 18,500,000 cards issued, and transaction volume for fiscal 2010 reaching 858 billion yen. In addition to Group companies, Aeon has been engaged in initiatives to expand the network of affiliated companies outside the Group, to include such companies as JAL, Yoshinoya, Family Mart, and McDonald’s, resulting in a drastic increase in

establishments accepting WAON payments. Aeon is striving to ensure that WAON can be used easily “anytime, anywhere, by anyone,” providing convenience for the everyday customer. Aeon is also actively promoting the issuance of “Regional WAON” cards through which customers can contribute to the conservation and development of local communities. As of the end of February 2011, 30 different types of “Regional WAON” cards have been issued nationwide. ■Changes in WAON usage during month, cumulative total of cards issued and number of locations accepting WAON payments Number of times used (in ten thousands) and cards issued (in ten thousands)

Number of affiliated merchants (in ten thousands) 11

Monthly WAON usage (in ten thousands)

6000

10

Cumulative total of cards issued (in ten thousands)

5500

Number of affiliated merchants accepting WAON payments (in ten thousands)

5000

9 8

4500 4000

7

3500

6

3000

5

2500

4

2000 3 1500 2

1000

1

500 August 2007

February 2008

August 2008

February 2009

Merging Different Businesses to Create New Store Formats Aeon is striving to boost customer convenience by merging the operations of the 12 Group businesses to create new store formats. “Recods” is one of the new store formats that combines the specialization of the Drugstore & Pharmacy Business with the convenience of the Strategic Small Size Store Business. “Fantasy Kidzooona” is another store format that combines an indoor play space with a convenience store where parents can comfortably let their children play.

August 2009

February 2010

August 2010

February 2011

Aeon’s Products

Aeon’s TOPVALU brand products aim to “make our customers’ everyday lives even better” through design and development that reflect the opinions of customers while adhering to the Five TOPVALU Commitments. In addition to the TOPVALU line of clothing, food and household goods that deliver good quality and reasonably priced staple goods, Aeon has also established seven sub-brands. We presently have about 5,000 items in our TOPVALU range, allowing us to better meet the diverse lifestyles of our customers. Among these items, there are 50 mega-hit items that generate at least one billion yen in annual sales. We will continue to pursue innovation with our TOPVALU items to increase the lineup of mega-hit items to 300 by 2013.

Food Artisan Project

The TOPVALU logo

The brand logo signifies a promise to customers that we will deliver a wide range of products of high quality and reliability.

“Forest” symbol Mother Forest The forest of quality living ＝

TOPVALU

A wide assortment of products (leaves and trees) that enhance our standard of living

Aeon is engaged in efforts to pass on local food culture through partnerships with producers from every region of Japan who devote themselves to preserving local delicacies. Through these efforts, Aeon also strives to create a new sense of value for food, cultivate future Food Artisans, and contribute to the revitalization of local economies.

All products carrying the TOPVALU logo are guaranteed to ensure that customers are receiving the best prices and that the product is valued by Group companies and employees as a trusted product of the Aeon Group.

We shall reflect the voices of customers in our products.

The Five TOPVALU Commitments

We shall offer safe, reliable and environmentally friendly products. We shall present product information in an easily understandable way. We shall offer products at affordable prices.

HAPYCOM is one of Japan’s largest alliances of drugstores and pharmacies, with annual sales exceeding 960 billion yen. As total health care stations, HAPYCOM stores will work to gain the trust of local customers and to provide high-quality services and products.

We shall guarantee our customers’ satisfaction.

Safe and Secure Production Aeon oversees the entire process from material procurement through production, distribution and quality inspection for TOPVALU products. We work actively to disclose production history through the use of a traceability system. We expect much more than just quality management from our outsourced manufacturers. We also request that our suppliers comply with the Aeon Supplier Code of Conduct, which ensures that standards relating to human rights, work environments and corporate ethics are strictly observed.

TOPVALU is the brand that offers everyday items with reliable quality at affordable prices.

TOPVALU KYOKAN SENGEN is the environmentally friendly brand developed based upon the concepts of the 4R’s: Reduce, Recycle, Reuse, and Returnable.

HAPYCOM

TOPVALU SELECT is the superior quality brand that offers products using superior ingredients, identifiable place of origin, unique manufacturing methods and/or functional benefits.

TOPVALU BESTPRICE is the brand that offers daily essential items with good quality at competitive prices.

TOPVALU Gurinai is the brand for processed foods of produce, marine and livestock that are cultivated, raised or grown with special care using less agricultural chemicals, antibiotics or other chemical additives.

TOPVALU READY MEAL is the brand that offers safe and delicious prepared meals that are simple and convenient to make.

TOPVALU HEALTHY AI is the well-being brand that helps customers achieve healthy and beautiful lifestyles.

TOPVALU PREMIUM is the brand that offers products using high quality materials and manufacturing methods that support the changes in body shape and lifestyle that occur with aging.

Aeon’s Corporate Social Responsibility Activities

Aeon Sustainability Principle

Bring Your Own Shopping Bag Campaign

In March 2011, Aeon announced the “Aeon Sustainability Principle” which supports various initiatives from three different angles: the store perspective, the product perspective, and the perspective of working together with customers. This policy is based on the criteria underlined in the “Aeon Manifesto on the Prevention of Global Warming,” which sets CO2 emission targets, and the “Aeon Biodiversity Principle” which sets out measures to protect against biodiversity loss due to business activities. Aeon will continue to carry out globally-based environmental conservation and social contribution activities rooted in local communities to contribute to the establishment of a sustainable society.

Aeon has been actively working to promote the “Bring Your Own Shopping Bag Campaign” since 1991. The campaign encourages customers to bring their own personal shopping bags or baskets in an effort to cut CO2 emissions by reducing the volume of plastic bags given to customers. Aeon has expanded the number of Group-wide stores discontinuing free plastic bags to 757 stores.

Aeon Eco Stores

923

873

792 715

663

605

553

518

485

375

311

245

196

161

109

462

Cumulative total of trees planted (in 10,000s)

25

Aeon Biodiversity Principle

At the opening of new shopping centers and other facilities, Aeon has been planting and nurturing indigenous saplings with customers under the “Aeon Hometown Forests Program” since 1991. The Aeon Environmental Foundation also engages in tree planting in Japan and overseas to help restore forests that have been devastated by natural disasters and other factors. To date, Aeon has planted a cumulative total of about 9,470,000 trees through these tree planting activities.

83

Aeon Manifesto on the Prevention of Global Warming

Aeon actively conducts global based initiatives rooted in local communities, concentrating on “achievement of a low carbon society,” “biodiversity conservation,” “effective use of resources,” and “response to social issues.”

Aeon’s Tree Planting

13

Aeon Sustainability Principle

In working together with stakeholders to establish a sustainable society, Aeon abides by the basic principles of the “pursuit of peace, respect for humanity and contribution to local communities, always with the customer’s point of view as its core.”

947

Aeon Eco Stores aim to reduce CO2 emissions by at least 20% - 30％compared to other shopping centers of similar size. As of the end of March 2011, there are 11 Aeon Eco Stores across Japan, each equipped with features to help reduce CO2 emissions, such as solar power generating systems, energy-saving equipment, and wall- and rooftop-greening.

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Social Contribution Activities [Local Activities]

Social Contribution Activities [Global Activities]

Aeon Happy Yellow Receipt Campaign

School Construction Support Project

Since 2001, Aeon has designated the 11th of every month “Aeon Day” – a day on which all employees engage in social contribution activities designed to focus on the “environment” and “local contribution.” On this day, Aeon issues yellow receipts that customers drop into designated boxes individually labeled with the description of volunteer groups. Aeon donates requested goods in an amount equivalent to 1% of the total value of the receipts to the respective volunteer groups to support their activities.

Since 2001, Aeon has been working in partnership with the Japan Committee for UNICEF to support school construction in developing countries in Asia. To date, 326 elementary schools have been built in Cambodia, Nepal and Laos with the support of donations from customers, Aeon employees, and the company itself. In 2010, Aeon launched a three-year plan to construct schools in Vietnam, opening an elementary school in the area in the spring of 2011.

Aeon and UNICEF Safe Water Campaign Participating in Local Festivals Aeon actively engages in promoting the local culture and transmitting these values to the next generation by, for instance, encouraging employees to participate in local festivals, and by serving as a community hub by hosting local festivals and events in the parking lots of shopping centers.

Concluding Cooperative Agreements with Local Authorities In order to be able to efficiently provide goods and supplies, shelter, and other emergency aid in the event of a natural disaster, over 1,000 Aeon Group stores and offices have concluded cooperative agreements with over 600 local government organizations for the promotion of disaster prevention. Aeon is also actively engaged in concluding comprehensive cooperation agreements to promote tourism and the sale of local specialties in an aim to revitalize local communities.

Other Activities

In Laos and Cambodia, where Aeon has been providing support in the construction of schools, the number of children attending classes is low because many children are responsible for household duties such as walking long distances to draw water. The water itself is also unsafe to drink. In an effort to help provide clean and safe water, Aeon launched the Safe Water Campaign in 2010, based on a three-year plan, in partnership with the Japan Committee for UNICEF.

Teenage Ambassador Program This program began in 1990 with the goal of enhancing international friendship and mutual understanding among the youth who will lead the next generation. To date, 508 high school students from 14 countries have been invited to Japan.

Other Activities – PET bottle cap campaign – Fair trade

– Clean and Green activities – The Aeon Welfare Fund

(As of the end of February 2011)

Information on Aeon Co., Ltd. and its subsidiaries As of February 28, 2011

■ Operating Revenue (Millions of Yen)

Company Name: Establishment: Capital Stock: Head Office:

AEON CO., LTD. September 1926 ¥199,054 million 1-5-1 Nakase, Mihama-ku, Chiba-shi, Chiba 261-8515, Japan Website: www.aeon.info Description of Business: Pure holding company Operates chain stores and shopping centers and manages the business activities of affiliated overseas companies through the ownership of stock and equity in those companies.

■ Operating Income (Millions of Yen) 4,824,775

FY 2006 FY 2007

FY 2006 FY 2007

5,167,366

FY 2008

189,728

5,230,786

156,040

FY 2008

FY 2009

5,054,394

FY 2009

FY 2010

5,096,569

FY 2010

124,373 130,193 172,360

■ Five Year Summary of Selected Financial Data (Millions of Yen)

We are Aeon. JUSCO Co., Ltd. was established in 1970 through a business

Operating Revenue

Operating Income

Ordinary Income

Net Income

FY 2006

4,824,775

189,728

188,303

57,656

FY 2007

5,167,366

156,040

166,326

43,932

FY 2008

5,230,786

124,373

126,030

△2,760

FY 2009

5,054,394

130,193

130,198

31,123

FY 2010

5,096,569

172,360

182,080

59,688

partnership between three local companies – Okadaya, Futagi, and Shiro. At that time, “Japan United Stores Company” was chosen

■ Changes in Operating Revenue by Business Segment

■ Changes in Operating Income by Business Segment

(Millions of Yen)

by vote of the employees, with the acronym JUSCO becoming the

(Millions of Yen)

official new company name. On August 21, 2001, JUSCO Co., Ltd.

FY 2006

FY 2006

changed its name to Aeon Co., Ltd. Then, on August 21, 2008,

FY 2007

FY 2007

FY 2008

FY 2008

FY 2009

FY 2009

FY 2010

FY 2010

Aeon made a transition to a pure holding company structure with Aeon Co., Ltd. as its core, and the retail business of Aeon Co., Ltd. was transferred to Aeon Retail Co., Ltd. As of February 28, 2011, Aeon Co., Ltd. and its Group companies include a total of 180 companies. Aeon constantly strives to be innovative and hold tight to the “Customer-First” philosophy as we continue working to enhance our customers’ lives.

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

■GMS and Other Retail Store Operations

■Specialty Store Operations 

■GMS and Other Retail Store Operations

■Specialty Store Operations 

■SC Development Operations

■Services and Other Operations

■SC Development Operations

■Services and Other Operations

180,000

200,000