Aeon Co., Ltd. · TSE:8267

Aeon — FY2021 Earnings Presentation

43 slides from Aeon's earnings presentation, Apr 8, 2022

Slide 3: Consolidated Results
Consolidated Results ・Increased revenue and profit with a record-high operating revenue of over 8.7 trillion yen. ・Profit attributable to owners of parent improved sharply with a profit increase of 77.5 billion yen and returned to the black. （billion yen） FY2020 FY2021 YoY Results Results %/change O
Slide 4: Results by Segment (Operating Revenue)
Results by Segment（Operating Revenue）・Health & Wellness, Shopping Center Development and Services and Specialty Store businesses contributed to increase revenue. ・Revenue of SM and DS businesses exceeded FY2019, prior to the COVID-19 pandemic. 【Operating Revenue by Segment】（billion yen, %） Operati
Slide 5: Results by Segment (Operating Profit)
Results by Segment（Operating Profit）・Five businesses improved profitability. Financial Services business and GMS business significantly improved by various initiatives to improve profitability. ・Profit of SM and DS businesses exceeded FY2019, prior to the COVID-19 pandemic. 【Operating Profit by Seg
Slide 6: Quarterly trends in operating profit
Quarterly trends in operating profit ・Seven businesses increased profit or reduced profit decline in the fourth quarter. Profit recovered to growth of 2.5 billion yen. 【Operating Profit YoY change】※ (billion yen) Trend Business 1Q 2Q 3Q 4Q Growth Heath ＆・Sales increased by recovering the dropout co
Slide 7: GMS Business (AEON Retail)
GMS Business (AEON Retail) ・Gross operating profit rose ¥19.2 billion, thanks to higher sales in the food category and improvement in the gross profit margin in the apparel category. ・Expenses reduced compared to FY2019, prior to the COVID-19 pandemic. 【Operational Profit YoY change】 (Excluding the
Slide 8: Financial Services, Services and Specialty Store, Shopping Center Development Businesses
Financial Services, Services and Specialty Store, Shopping Center Development Businesses Operational Business Profit Business Situation Segment YoY change ・Bad Debt Expenses YoY change ¥-21.6 billion ・Improvement in the non-performing loan ratio due to persistent efforts to refine the credit screeni
Slide 9: Health & Wellness, International, SM, DS Businesses
Health & Wellness, International, SM, DS Businesses Operational Business Profit Business Situation Segment YoY change ・Drugstores capable of processing prescriptions +0.3 1,839 stores (Japan) (vs. plan +55 stores） Welcia Health＆ billion yen ・142 stores opened (Japan) Wellness （vs. FY2019 (vs. plan +
Slide 10: Recent sales trend
Recent sales trend ・Sales in the apparel category of GMS, Services and Specialty Stores and tenants for Shopping Center Development were suffered by the rapid spread of the Omicron variant but in recovery trend recently. ・Food sales have remained generally flat year on year, with capturing dine-in d
Slide 12: Scenario concerning the impact of COVID-19
Scenario concerning the impact of COVID-19 ・Premising that the government will not declare a state of emergency. （億円）【Scenario concerning the impact of COVID-19 (Japan)】１Q ２Q ３Q ４Q No state of emergency declared Priority measures to Priority measures to prevent the spread prevent the spread Comple
Slide 13: Fiscal 2022 Forecast
Fiscal 2022 Forecast ・Planning to increase revenue and profit. Operating Revenue will be 9 trillion yen and profits at each line （億円）will exceed the level prior to the COVID-19 pandemic. ・All business segments will increase profit. GMS and Services and Specialty Store will return to profitability. ・
Slide 14: Investment Plan
Investment Plan ・Planning to mainly invest in growth areas, such as the opening of new stores in Vietnam, the next-generation online supermarket that is opening in 2023, self-checkout registers, distribution centers for SM; and so on. Average in Average in previous mid- FY2021 FY2022 present mid- te
Slide 15: Forecast of Dividend Payment
Forecast of Dividend Payment ・Expected dividend of ¥ 36 per share at the previous year's level. FY2022 FY2021 （Forecast） End of second Ordinary Dividend 18 yen Ordinary Dividend 18 yen quarter Year-end Ordinary Dividend 18 yen Ordinary Dividend 18 yen Total Ordinary Dividend 36 yen Ordinary Dividend
Slide 17: FY2021-FY2025 Medium-term Management Plan: First-year Progress
FY2021~FY2025 Medium-term Management Plan: First-year Progress AEON Co., Ltd. April 8, 2022 Copyright 2022 AEON CO., LTD. All Rights Reserved.
Slide 18: Summary of main Medium-term Management Plan initiatives
Summary of main Medium-term Management Plan initiatives ¥ 130 1 • Standardization of WAON Points and launch of Acceleration and Group app iAEON Digital evolution of the • Various initiatives aimed at enhancing (Online) billion convenience, such as online supermarket (FY2019 ¥ 70 digital shift servic
Slide 19: Acceleration and evolution of our digital shift
Acceleration and evolution of our “digital shift” (overview of initiatives) - Build a new customer-focused ecosystem leveraging technology to enable a shift from focusing on brick-and-mortar stores and product sales to the provision of seamless experiences integrating store-based and online retail f
Slide 20: Rapid growth of the online supermarket business
Rapid growth of the online supermarket business Offline versus Online: Growth comparison over the last three years Average annual growth rate Average annual growth rate of offline store food sales of online supermarket sales ＋2.4％＋35.1％ Sales exceeded 75 billion yen FY2019 FY2020 FY2021 FY2019 FY20
Slide 21: Growth potential for Japan's online supermarket market
Growth potential for Japan’s online supermarket market Online supermarket weighting in food sales in more digitally advanced countries （Partly estimated） 34.3 % 27.9 China Japan 3.3% (FY2020) 22.7 18.5 21.5 15.0 19.1 12.0 16.9 U.S.A. 14.6 10.0 12.5 8.0 10.2 2.7 3.4 2018 19 20 21 22 23 24 2025 Source
Slide 22: Store digitalization initiatives (Japan)
Store digitalization initiatives (Japan) Enhancements to both customer convenience and productivity Pioneering industry solutions as a retailer-turned-tech firm Retailtech Japan 2022 • Available at more than 500 stores (rolled out to all Kasumi and Maruetsu stores) • Utilization rate above 16% at BL
Slide 23: Store digitalization initiatives (China)
Store digitalization initiatives (China) Benefits from initiatives in China Speedy rollout of best • 11% online supermarket practices in China to Japan sales weighting Main management items • Freeing up of 90,000 labor- Sales hours with use of in-house- developed operations app Budget Progress • Imp
Slide 24: Development of shared digital infrastructure
Development of shared digital infrastructure Expanding customer touchpoints Use of data and AI with use of WAON points Monthly trend in price markdowns and product disposal rate Estimated yearly points issuance Aeon Retail data for cooked ready-to-eat meals Group-wide growth measures and increase in
Slide 25: Creating unique value with a supply chain-focused approach
Creating unique value with a supply chain-focused approach (overview of measures) -Shift from serving as an intermediary and making proposals for products already on the market to creating and proposing unique values that only AEON can offer Direction -Make all-out Group-wide effort to create unique
Slide 26: Promoting the value of our private-brand products
Promoting the value of our private-brand products Sharp price increases Skyrocketing raw materials prices Topvalu product prices unchanged (Jan 2021 indexed as 100) since September 2021 152% Canola 135% oil Data for Sep 2021 to Feb 2022 Main Topvalu food categories Wheat Net sales up 15% YoY 100％ 1
Slide 27: Topvalu re-branding
Topvalu re-branding Transforming the Topvalu brand by delivering new value “Premium Draught Beer” went on sale on March 8, 2022 New value-creation brand that continues to offer solutions for customer lifestyles Organic and natural ingredient- focused brand that pursues environmental sustainability i
Slide 28: In-house development of private-brand products (food)
In-house development of private-brand products (food) Revamping infrastructure nationwide with a view to further developing fresh produce and delicatessen products Apr 2021: Ishikari processing center Example of processing center utilization: Hokkaido up and running Creation of the No. 1 product in
Slide 29: Creating the AEON Living Zone
Creating the “AEON Living Zone” (overview of initiatives) -Construct the AEON Living Zone rooted in their respective communities combining multi-format store networks and businesses with digital infrastructure Direction -Continually contribute to local communities through business activities, while
Slide 30: Progress on regional shift
Progress on “regional shift” Aiming to be the number one group in each region 【Mar 2020】 • Daiei • Kohyo Hokkaido 【Mar 2022】【Mar 2020】 • Fuji • AEON Hokkaido • Maxvalu Nishinihon • Maxvalu Hokkaido 【Sep 2020】 • AEON Kyushu Tohoku • Maxvalu Kyushu 【Sep 2021】 • AEON Store Kyushu • Maxvalu Tohoku • AE
Slide 31: Progress on regional shift
Progress on “regional shift” Strengthening management platform through “regional shift” Maxvalu Tokai Operating profit Key measures in FY2022 aimed at further growth Upward revision Strengthening product appeal Productivity enhancements (scale + (operational reforms) development capabilities) Initia
Slide 32: Towards creating of the AEON Living Zone
Towards creating of the “AEON Living Zone” Promoting the building of regional hubs Change of profit structures Anchor Store Office areas An office/retail Tenants commercial facility AEON MALL Nagoya Noritake Garden（Oct. 2021） Existing Malls Nagoya Noritake Garden Change in sales composition Fresh pr
Slide 33: Welcia's business growth
Towards creating of the AEON Living Zone Welcia’s business growth Welcia Holdings First in drugstore industry Key measures in FY2022 aimed at further growth to reach sales of ¥1.0 trillion ¥1trn Preparing for digital CAGR Expansion of drugstores capable of transformation of drug dispensing processin
Slide 34: Outlook for Shopping Center Development & Services and Specialty Store businesses
Outlook for Shopping Center Development & Services and Specialty Store businesses Targeting a return to a steadfast growth trajectory Both sales and customer traffic are Anticipating further improving as COVID-19 infections decline earnings growth potential 140 • Structural distribution issues cause
Slide 35: AEON Basic Principles
AEON Basic Principles Pursuing peace, respecting humanity, and contributing to local communities, always with the customer’s point of view as its core. Peace Peace : AEON is a corporate group whose operations are dedicated to the pursuit of peace through prosperity. People : AEON is a corporate grou
Slide 38: Results of important initiatives by AEON Retail
(Reference) Results of important initiatives by AEON Retail 【E-Commerce】 Online Supermarket Pick-up service AEON Style Online Sales YoY% Sales YoY% Sales YoY% +21％※1 Approx. 2.2 times※1 +16% 【Enhanced Convenience】 Number of stores Number of stores implemented “Regi Go” self- Cashless payment ratio i
Slide 39: The End of FY2021 Consolidated Balance Sheet
The End of FY2021 Consolidated Balance Sheet （billion yen ） Liabilities and net Assets change change （main items only） 2021/2 2022/2 from ‘21/2 assets 2021/2 2022/2 from ‘21/2 (main items only) Notes and accounts Cash & deposit 1,287.5 1,172.2 ▲115.3 payable 1,072.4 975.5 ▲96.8 Notes and accounts In
Slide 40: FY2021 Consolidated Cash Flow Statement
FY2021 Consolidated Cash Flow Statement （billion yen） Main items only FY2020 FY2021 YoY change Cash Flow from Operating Activities （Except for increase (decrease) in financial loan and time 396.4 204.4 -192.0 deposits, loans, and bills discounted for banking (418.4) (136.1) (282.3) business) Income
Slide 41: FY2021 Investment Results (by segment)
FY2021 Investment Results (by segment) （billion yen） FY2021 YoY change Consolidated Total 352.5 51.2 GMS 11% 53.2 -12.7 SM 60.7 10.8 DS 22% 3.5 0.7 Health ＆ Wellness 20.2 4.5 Financial Services 39.8 -5.0 Shopping Center Development 134.0 49.5 14% Services and Specialty Store 18.2 -0.2 International
Slide 42: FY2021 Results of Daiei and ex-Daiei GMS
FY2021 Results of Daiei and ex-Daiei GMS （billion yen） Operating Revenue Operating Profit Business Segment Company Name vs. vs. YoY Result YoY % FY2019 % Result change FY2019 change AEON Retail store ※Former Daiei 109.3 -0.1% -10.2% -2.8 +0.3 +2.4 GMS GMS in Kanto, Kinki, and Nagoya region SM Daiei
Slide 43: Disclaimer regarding Forecast Statement
Disclaimer regarding Forecast Statement • These materials are intended for the purpose of providing information, and not to encourage any specific actions. The company has prepared these materials (including business plans) based on available information believed to be reliable, but there are risks

Aeon — FY2021 Earnings Presentation on 6ix

Aeon — FY2021 Earnings Presentation

Slide 1: FY2021 Presentation Materials

Slide 2: Overview of FY2021 Financial Results

Slide 3: Consolidated Results

Slide 4: Results by Segment (Operating Revenue)

Slide 5: Results by Segment (Operating Profit)

Slide 6: Quarterly trends in operating profit

Slide 7: GMS Business (AEON Retail)

Slide 8: Financial Services, Services and Specialty Store, Shopping Center Development Businesses

Slide 9: Health & Wellness, International, SM, DS Businesses

Slide 10: Recent sales trend

Slide 11: FY2022 Forecast

Slide 12: Scenario concerning the impact of COVID-19

Slide 13: Fiscal 2022 Forecast

Slide 14: Investment Plan

Slide 15: Forecast of Dividend Payment

Slide 16: Copyright 2022 AEON CO., LTD. All Rights Reserved.

Slide 17: FY2021-FY2025 Medium-term Management Plan: First-year Progress

Slide 18: Summary of main Medium-term Management Plan initiatives

Slide 19: Acceleration and evolution of our digital shift

Slide 20: Rapid growth of the online supermarket business

Slide 21: Growth potential for Japan's online supermarket market

Slide 22: Store digitalization initiatives (Japan)

Slide 23: Store digitalization initiatives (China)

Slide 24: Development of shared digital infrastructure

Slide 25: Creating unique value with a supply chain-focused approach

Slide 26: Promoting the value of our private-brand products

Slide 27: Topvalu re-branding

Slide 28: In-house development of private-brand products (food)

Slide 29: Creating the AEON Living Zone

Slide 30: Progress on regional shift

Slide 31: Progress on regional shift

Slide 32: Towards creating of the AEON Living Zone

Slide 33: Welcia's business growth

Slide 34: Outlook for Shopping Center Development & Services and Specialty Store businesses

Slide 35: AEON Basic Principles

Slide 36: AEON is opposed to warfare

Slide 37: Copyright 2022 AEON CO., LTD. All Rights Reserved.

Slide 38: Results of important initiatives by AEON Retail

Slide 39: The End of FY2021 Consolidated Balance Sheet

Slide 40: FY2021 Consolidated Cash Flow Statement

Slide 41: FY2021 Investment Results (by segment)

Slide 42: FY2021 Results of Daiei and ex-Daiei GMS

Slide 43: Disclaimer regarding Forecast Statement