FY2016 1st Quarter Presentation Materials · 7/6/2016 · ・MINISTOP CO., LTD. : (Domestic) Proactive refurbishment of existing . stores / (South Korea) Counter decline to the gains

Copyright 2016 AEON CO., LTD. All Rights Reserved. Copyright 2016 AEON CO., LTD. All Rights Reserved.

FY2016 1st Quarter

Presentation Materials

July 6, 2016 AEON Co., Ltd.


(Units: billion yen, %) 1Q FY 2015 1Q FY 2016 YoY

Change

Operating Revenue 2,019.4 2,046.1 101.3%

Operating Income 34.9 32.8 -2.0

Ordinary Income 35.7 34.6 -1.1

Profit (Loss) Attributable to Owners of Parent

5.0 -6.2 -11.2

FY 2016 1st Quarter: Consolidated Statements of Income (Summary)

Summarized Consolidated Statements of Income

Achieved highest operating revenue ever (1Q). The 1st quarter results are in line with the latest announcement of earnings forecasts.

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Assets (Major items only) 2016/2 2016/5 QoQ

Change

Cash and time deposits 736.0 685.7 -50.2

Notes and accounts receivable - trade (incl. instalment receivables)

1,094.9 1,119.0 +24.1

Merchandise inventories 575.6 578.5 +2.9

Financial loan & loans and bills discounted for banking business

1,518.2 1,722.7 +204.5

Property, buildings, and equipment 2,615.4 2,669.3 +53.8

Investments and other assets 872.6 869.6 -3.0

Total Assets 8,225.8 8,410.8 +184.9

Liabilities and Net Assets

(Major items only) 2016/2 2016/5 QoQ

Change

Notes and accounts payable - trade 892.6 932.3 +39.7

Interest-bearing debt (ex. Financial services)

2,170.8 (1,374.3)

2,199.6 (1,420.2)

+28.8 (+45.8)

Deposits for banking business 2,116.1 2,226.1 +110.0

Total Liabilities 6,406.3 6,603.3 +196.9

Shareholders’ equity 1,082.6 1,065.2 -17.4

Total Net Assets 1,819.4 1,807.4 -12.0

Total Liabilities and Net Assets 8,225.8 8,410.8 +184.9

Summarized Consolidated Balance Sheets (Units: billion yen)

FY 2016 1st Quarter: Consolidated Balance Sheets (Summary)

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FY 2016 1st Quarter: Operating Results by Business Segment

(Units: billion yen,%)

Operating Revenue Operating Income

Result YoY % Result YoY Change

General Merchandise Store 745.1 112.4% -9.3 -4.5

Supermarket & Discount Store 716.3 93.3% 5.5 +2.5

Small-sized Store 92.7 110.0% -0.0 -0.2

Drugstore & Pharmacy 153.8 107.1% 3.9 +0.5

Financial Services 89.6 105.9% 13.6 +1.2

Shopping Center Development 78.1 117.7% 11.6 +0.2

Services & Specialty Store 196.9 105.6% 7.8 +0.0

International 111.3 94.8% -1.3 -2.0

Consolidated Total 2,046.1 101.3% 32.8 -2.0

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Overview by Business Segment ①

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General Merchandise Store(GMS)

・AEON KYUSHU CO., LTD. : Addressing customer needs following the 2016 Kumamoto earthquake as a community lifeline ・Former Daiei GMS Stores: Transferring 29 stores in March ・AEON Retail Co., Ltd. : Launching new stores and proceeding with GMS reforms

Supermarket & Discount Store

・Maxvalu companies: Expanding perishable foods and raising freshness, expanding locally sourced products, and proceeding with store refurbishment ・The Daiei, Inc., AEON MARKET CO., Ltd, : Centralizing of management resources through reorganization of stores

Small-sized Store ・MINISTOP CO., LTD. : (Domestic) Proactive refurbishment of existing stores / (South Korea) Counter decline to the gains due to tobacco tax hike recorded in the previous year

Drugstore & Pharmacy

・Promoting Welcia model such as the refurbishment of existing stores ・CFS Corporation : Integrating its system, sales promotions, etc. to those of the Welcia Group


Overview by Business Segment ②

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Financial Services

・Promoting acquisition of card members, expanding opportunities for transaction ・Full implementation of installation of tablets for member solicitation operations at overseas stores

Shopping Center Development

・AEON Mall Co., Ltd. : Promoting refurbishment of existing malls to double(10SCs) from the same period last year, and developing new malls (Domestic 3SCs)

Services & Specialty Store

・AEON DELIGHT CO., LTD. : Expanding the provision of comprehensive facilities management services ・AEON Fantasy Co., Ltd.: Promoting brand conversion of amusement centers managed by former Daiei subsidiary integrated into AEON Fantasy Co., Ltd.

International

・Malaysia: Counter-reaction to the rush in demand ahead of the introduction of a goods and services tax in the previous year ・Vietnam: Products launched to deal with local needs such as the Vietnamese Tet, etc. ・Hong Kong: Clearance sale prio to major refurbishment of flagship store


Promotion of Reforms in AEON Retail Co., Ltd. and The Daiei, Inc.

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AEON Retail Co., Ltd. Operating Results for FY2016 1Q

Continuous improvement in gross margin, accelerating product reforms and sales floor reforms

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Sales ・YoY of Existing Stores Sales: 98.3%

(YoY of Customer traffic: 95.8%; YoY of Average transaction :102.6%)

Gross Margin ・YoY of Gross Margin : +1.5 pts

Expenses ・YoY of Same Stores: -0.9%

(Units: billion yen,%) Operating Revenue Operating Income

Result YoY Result YoY Change

AEON Retail Co., Ltd. 537.9 105.7% -6.2 -0.8

[Other matters that contributed to ・Newly opened GMS: 3 stores (c.f., same period last year: zero) YoY change] ・Transfer of VIVRE FORUS Division to OPA Co., Ltd.

* Managerial accounting figures for GMS 6 regional companies


AEON Retail Co., Ltd. Refurbishment of Existing Stores

The continuous refurbishment of stores has contributed to receive a favourable reception by customer (increase the same stores sales)

Status of refurbished stores for the second half of FY2015 (YoY of existing stores sales)

Before refurbishment (The first half of the fiscal year ended

February 2016)

After refurbishment (FY2016 1Q)

Refurbished stores (16 stores) % 98.9 % 100.2

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FY2014 FY2015 FY2016 1Q Total

24 44 21 89

Number of refurbished stores

* Investment amount of 30 million yen or more

(98.6 %) Existing stores (All stores) (98.3 %)


Transfer of Daiei Stores (Review of store reorganization)

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Business/ Company

Transfer date

Supermarket & Discount Store

General Merchandise Store

The Daiei, Inc.

Ｍaxvalu Hokkaido Co., Ltd.

Maxvalu Kyushu Co., Ltd.

AEON Hokkaido Corporation

AEON Store

Kyushu Co., Ltd.

AEON Retail Store

Co., Ltd.

Sep 1st, 2015 -59 +7 +14 +9 +24 +5

Mar 1st, 2016 -29 +29

Change in transferred stores

-88 +7 +14 +9 +24 +34

Change in stores due to store transfers (Units: Number of Stores)


Refurbishment contributes to further growth of each regional GMS and SM companies

Refurbishment of Transferred Stores (AEON Hokkaido Corporation and Maxvalu Hokkaido Co., Ltd.)

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[Transferred stores: Examples of refurbishment (stores refurbished in 1Q)] Maxvalu Hokkaido Co., Ltd. (SM) “MaxValu Maruyama Class Store”

April 2 refurbishment: YoY of May sales: 101.4% (+5.8% vs. The second half of FY2015)

AEON Hokkaido Corporation (GMS) “AEON Sapporo Asabu Store”

March 10 refurbishment: YoY of May sales: 106.8% (+12.5% vs. The second half of FY2015)


Refurbishment of Transferred Stores (Maxvalu Kyushu Co., Ltd.)

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[Transferred stores: Example of refurbishment (2Q)]

Maxvalu Kyushu Co., Ltd(SM) “Maxvalu Express Kamishirouzu Store” Refurbished on June 9


The Daiei, Inc. Operating Results for FY2016 1Q

Structural reforms result in the improvement of gross margin and SGA. Establishing the structure as SM business by moving away from the existing GMS structure.

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(Units: billion yen,%) Operating Revenue Operating Income

Result YoY Result YoY Change

The Daiei, Inc. 78.4 52.9% -2.1 +0.2

Number of Daiei stores (end of 1Q: 182 stores)

Format reforms Product reforms Structural reforms

Urban style SM refurbishment of 3 stores

Expansion of new product line-up

Improvement of productivity through revision of operations and streamlining headquarters personnel

Sales: YoY of Existing stores 99% (same for food: 100% ) Gross Margin: YoY of Existing stores +0.6 SGA: YoY Change -22.9 billion yen


Daiei Tsukishima Store Daiei Sakuraiekimae Store Daiei Esakaekimae Store

Gap with stores not refurbished

Approx.＋１０%

Sales YoY% Stores not refurbished

Urban style supermarkets*

1Q Result 98% 107%

* Of the 19 urban style supermarkets, results for 16 stores for which YoY comparison is possible

There were 19 urban style supermarkets at the end of 1Q. Approximately 1/3 of all stores to become urban style supermarkets by the end of FY2016

The Daiei, Inc. Urban Style Supermarkets

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FY2016 Forecasts

(Units: hundred million yen,%)

FY2015 Result

FY2016 Forecast YoY change

Operating Revenue 8,176.7 8,400.0 102.7%

Operating Income 176.9 190.0 +13.0

Ordinary Income 179.6 185.0 +5.3

Profit Attributable to Owners of Parent 6.0 10.0 +3.9

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Disclaimer regarding Forecast Statement

• This material is solely for information purposes and should not be construed as a solicitation. Although this material (including the financial projections) has been prepared using information currently available and reliable, AEON Co., Ltd. does not take responsibility for the accuracy and completeness of the information pertaining to the inherent risks and uncertainties of the material presented.

• We kindly ask that you exercise your own judgment in assessing this material. AEON Co., Ltd. is not responsible for any losses that may arise from investment decisions made based on the forecasts and other numerical targets contained herein.

• AEON Co., Ltd. maintains all copyrights to this material. No duplication or distribution is permitted without prior consent of AEON Co., Ltd.

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FY2016 1st Quarter Presentation Materials · 7/6/2016 · ・MINISTOP CO., LTD. : (Domestic) Proactive refurbishment of existing . stores / (South Korea) Counter decline to the gains