consolidated financial results fy2014 · < ohk machinaka studio > aeon mall wakayama aeon...

ÆON MALL Co., Ltd.(TSE: 8905)

Consolidated Financial Results FY2014(March 1, 2014 – February 28, 2015)

April 9, 2015

Management Philosophy ········································································································································································P2

1. Summary of Financial Results for the Fiscal Year Ended February 2015

Consolidated Results ·······································································································································································P4

New Business Bases in Japan ···························································································································································P5

Revitalizing Existing Malls / Changes in Vacancy Rate····························································································································P6

Monthly Data (Existing 58 malls, on a year-on-year basis) ·······················································································································P7

Year-on-Year Changes in Sales at Specialty Stores in Aeon

Malls by Segment (Year-on-year changes in 58 existing malls) ·················································································································P8

Business in China: Malls in the Beijing and Tianjin Areas ························································································································P9

Business in China: New Malls Opened in FY2014································································································································ P10

Business in the ASEAN Region: New Malls Opened in FY2014 ·············································································································· P11

Details of Changes in Profit and Loss ··········································································································································· P12-15

Summary of Income Statement ······················································································································································ P16

Summary of Balance Sheets ·························································································································································· P17

Summary of Cash Flows ······························································································································································· P18

2. Medium-Term Management Plan (FY2014 – FY2016)

Plan for Number of New Malls ························································································································································· P20

Capital Investment Plan ·································································································································································· P21

Financing plan ·············································································································································································· P22

Use of REIT as a Growth Tool ·························································································································································· P23

3. Planned Projects (In and after FY2015)

Business in Japan: New Business Locations ································································································································· P25-26

Business in Japan: Increasing the Earning Power of Existing Malls ···································································································· P27-28

Business in Japan: Development/Entry into New Market (Foreign Visitors) ······························································································· P29

Overseas Business ······································································································································································· P30

Business in China ········································································································································································· P31

Business in the ASEAN Region ························································································································································ P32

Performance Plan (Consolidated) ················································································································································ P33-34

1

Contents

We are establishing our new management philosophy with the aim of achieving further growth.

2

Management Philosophy

Management Philosophy

Aeon Mall Asahikawa Ekimae planned and held a stamp rally event jointly with the members of Asahikawa Heiwa-dori Kaimono Park shopping area to commemorate the opening of the mall.

Aeon Mall Okayama signed a cooperation agreement with Sky Mall 21 (Okayama Station shopping arcade) and Houkancho Shotengai (shopping arcade) on local economic promotion. We have helped to introduce a local electronic money point system, and we hold joint events.

We take on the challenge of ultimate localization, which continues to enhance

the appeal of the local area.Houkancho shopping arcade

< New management philosophy >< New management philosophy >

Aeon Mall is a "Life Design Developer" Aeon Mall is a "Life Design Developer" that creates the future of people's lifestyles that creates the future of people's lifestyles

together with the local communities.together with the local communities.““Life DesignLife Design”” means increasing the variety of functions to suit the life stagmeans increasing the variety of functions to suit the life stages of local es of local shoppers beyond the framework of commercial facilities, and desishoppers beyond the framework of commercial facilities, and designing the future of gning the future of peoplepeople’’s lifestyles to include not only shopping, but also social activs lifestyles to include not only shopping, but also social activities and cultural ities and cultural

development.development.

< Management Philosophy >< Management Philosophy >

Building Towns That ShineBuilding Towns That Shine

We have grown to be JapanWe have grown to be Japan’’s largest commercial facility developer, operating 140 malls in s largest commercial facility developer, operating 140 malls in Japan and 9 malls overseas.Japan and 9 malls overseas.

We propose functions and roles of shopping malls to local resideWe propose functions and roles of shopping malls to local residents with a focus on community building, nts with a focus on community building, and develop malls that are in harmony with the local communitiesand develop malls that are in harmony with the local communities..

* Number of malls as of April 9, 2015.

3

1. Summary of Financial Results for 1. Summary of Financial Results for the Fiscal Year Ended February 2015the Fiscal Year Ended February 2015

The increase was caused by the organizational improvement to add malls in Japan and the expansion of overseas business facilities to accelerate business development in China and ASEAN countries.

While SG&A expenses increased significantly in the first half ofthe year, to ¥2,348 million (up 27.2% year on year), the increase was reduced in the second half of the year, when they were ¥629 million (up 7.0% year on year). 4

Consolidated Results

FY2014(Actual)

FY2013(Actual)

Year-on-year

Operating revenue 203,902 176,931 115.2Operating costs 141,464 117,117 120.8

Gross profit 62,437 59,814 104.4Selling, general and administrative expenses 20,565 17,586 116.9

Operating income 41,872 42,227 99.2Ordinary income 41,160 41,046 100.3Net income 24,513 23,430 104.6Net income per share (yen)* 107.58 106.96 – * Operating income is presented as gross profit on the profit and loss statement.

Number of new malls opened*1

Number of malls(as of February 28, 2015)

Japan 7 139 *2

China 2 6

Cambodia 1 1

Vietnam 1 2Total 11 148

(Million yen, %)

FY2014 (March 1, 2014 – February 28, 2015) Review

* The Company issued 23,500,000 common shares in a capital increase through a public offering for which the payment date was June 19, 2013, and 2,500,000 common shares in a capital increase through the private placement of new shares for which the payment date was July 12, 2013. The Company also conducted a stock split of 1.1 shares for every common share as of August 1, 2013, and net income per share for FY2013 was calculated by assuming that this stock split had been conducted at the beginning of the previous fiscal year.

*1 The number of malls that opened during the period between March 1, 2014, and February 28, 2015

*2 As of November 1, 2013 the Company signed a contract to undertake the management and operation of large commercial facilities of Aeon Retail Co., Ltd. in 69 locations.

< Business overview of malls in Japan > 58 existing malls

Sales at specialty storesDown 1.8% year on year

Operating revenue Up ¥54 million (0% year on year)Operating income* Down ¥1,999 million

(down 3.5% year on year) 12 new malls

<FY2013: Five malls, FY2014: Seven malls>Operating revenue Up ¥20,516 million (up 210.0% year on year)Operating income* Up ¥5,737 million (up 143.8% year on year)

< Business overview of overseas malls (China and ASEAN countries) > Three existing malls (Jan.-Dec.)

Sales at specialty stores Up 17.9% year on yearNumber of visitors to malls Up 21.4% year on year

Six new malls<FY2013: Two malls, FY2014: Four malls>

All results are generally as planned.

< Causes of increased SG&A expenses >

The mall is located in the walled college city of Fujitodai, a new urban area of Wakayama that is expected to be the new face of the prefecture. Maximizing the use of the large site and hilly topography, the mall includes an outside building called “Outer Mall” and “Auto Mall” located on the rooftop of the mall building.

Location: 1-2-1 Shimoishii, Kita-ku, Okayama City, Okayama Prefecture

Scheduled opening: December 5, 2014 Site area: 46,000 m2

Floor area: 250,000 m2

Total leasing area: 92,000 m2

Parking: 2,500 cars Specialty stores: 356

Location: 1-4 Tsukiji, Kisarazu, Chiba Prefecture Scheduled opening: October 18, 2014 Site area: 283,500 m2




Location: 376 and other, Kuzetakada-cho, Minami-ku, Kyoto City, Kyoto Prefecture; 50-1 Kunotsubo, Terado-cho, Muko City, Kyoto Prefecture

Scheduled opening: October 17, 2014 Site area: 92,000 m2




Flagship mall in western Japan located in front of Okayama Station, one of the key transportation hubs in the Chugoku and Shikoku area and a cross point of “people, culture, and information.”

Consists of 356 specialty stores, including 238 stores of tenants opening their first store in Okayama Prefecture and 65 stores of local companies. Houses one of the largest fashion centers in the Chugoku and Shikoku area and many flagship stores of major local companies.

Aims to develop a center of the serious creation and promotion of culture with Okayama Mirai Hall, which creates and promotes Okayama culture, and haremachi Special Zone 365, which provides opportunities to experience manufacturing that is unique to Okayama.

First commercial facility in Japan to install wide-area communications. Allows the dissemination of information on the facilities and local communities through various media using a TV studio in the mall and approx. 50 sets of digital signage.

Location: 573 Kusutani, Naka, Wakayama, Wakayama Pref. Scheduled opening: Grand opening on March 16, 2014 Site area: 155,000 m2




5

New Business Bases in JapanNew Business Bases in Japan

< Okayama Mirai Hall >

< OHK Machinaka Studio <Mirun> >

Aeon Mall OkayamaAeon Mall Wakayama

Aeon Mall Tendo

Aeon Mall Nagoya Chaya

Aeon Mall Kyoto Katsuragawa

Aeon Mall Kisarazu

Aeon Mall Tamadaira Woods

< haremachi Special Zone 365 >

< Mirai Square >

< haremachi Diner 6&7 >


Location: Block 34, Haga readjustment program area in Tendo, Yamagata Pref.

Opening: Grand opening on March 21, 2014 Site area: 140,000 m2 (incl. 46,000 m² of outside mall area) Floor area: 68,000 m2



Location: 2-11 Nishi-Chaya, Minato-ku, Nagoya, Aichi Pref. Opening: June 27, 2014 Site area: 186,000 m2




Location: 2-4-1 Tamadaira, Hino, Tokyo Scheduled opening:

November 20, 2014 Site area: 30,900 m2



Parking: 980 cars Specialty stores: 130

The mall is located in the Tsukiji district, where the Minatomachi Kisarazu Saisei Project (port town Kisarazu revitalization project), which is positioned as Kisarazu City’s basic plan, has been implemented. It is a multi-core mall-type commercial facility that includes an external active leisure zone and multiple anchor tenants on its very large site.

The mall is located in the center of Tendo Haga Town, which is being developed by the Tendo city government. It has been developed as a “tourist shopping mall” that takes advantage of the features of Tendo, including numerous tourist attractions, in particular the hot springs.

The mall is located in Kyoto Katsuragawa Tsumugi-no-machi, a development complex on the site of the former Kyoto factory of Kirin Co., Ltd., which lies across the border between Kyoto City and Muko City. The mall design incorporates traditional elements of the old capital Kyoto in a modern style.

The mall is located at the center of the Chayashinden Land Readjustment Project area, a new urban area including schools, houses, and parks is being created. It is the first facility using the “development improvement promotion area system”* introduced for the first time in Nagoya.* A system that promotes regional redevelopment based on commercial facilities even in the specific use districts in which opening of large malls is limited by the City Planning Act.

It is close to Toyoda Station on the JR Chuo Line and takes advantage of the local rich natural environment. The mall’s contribution to increased biodiversity such as the 4th-floor rooftop biotope was credited and certified as Business Innovation in Harmony with Nature and Community.

FY20140.22%

FY20110.25%

FY20120.20%

FY20130.20%

Average vacancy rate<Real Vacant Floor Area and Vacancy Rate>

FY20130.34%

FY20120.40%

FY20110.60%

FY20140.46%

Average vacancy rate<Vacant Floor Area and Vacancy Rate>

6

Revitalizing Existing Malls

Shopping malls Location Date reopened Tenants 1. New tenants* 2. Relocations & refurbishments

No. of tenants on reopening (1 + 2)

Aeon Mall Nogata Nogata City, Fukuoka Prefecture March 7 140 6 (3) 10 16Aeon Mall Kawaguchi Maekawa Kawaguchi City, Saitama Prefecture March 14 170 15 (4) 20 35Aeon Mall Kisogawa Ichinomiya City, Aichi Prefecture March 14 160 15 (7) 6 21Aeon Mall Hinode Nishi Tama-gun, Tokyo Metropolis March 20 160 29 (6) 39 68Aeon Mall Yamato Yamato City, Kanagawa Prefecture March 20 90 5 (0) 20 25Aeon Mall Fukuoka Kasuya-gun, Fukuoka Prefecture October 10 200 43 (21) 56 99Aeon Mall Suzuka Suzuka City, Mie Prefecture October 31 180 16 (4) 19 35Aeon Mall Okazaki Okazaki City, Aichi Prefecture November 7 170 34 (12) 66 100

Changes in Vacancy RateChanges in Vacancy Rate

(tsubo)


* Figures in parentheses indicate the first store openings in the relevant prefectures.

* The real vacant floor area is the vacant floor area less the area where the opening of new stores has been determined.

(tsubo)

Monthly March April May 1st quarter June July August 2nd

quarter 1st Half September October November 3rdquarter December January February 4th

quarter 2nd half Total

Sales 102.5% 96.6% 99.7% 99.7% 104.8% 97.4% 103.7% 101.7% 100.8% 99.8% 98.8% 102.2% 100.2% 99.9% 100.7% 98.7% 99.9% 100.1% 100.4%

No. of customers through checkout 101.5% 97.7% 97.8% 99.1% 103.1% 98.4% 102.6% 101.3% 100.4% 96.2% 98.1% 100.2% 98.2% 98.5% 99.0% 94.4% 97.6% 97.9% 99.1%

Average customer Transaction 101.0% 98.9% 102.0% 100.6% 101.6% 99.0% 101.1% 100.4% 100.4% 103.7% 100.7% 102.1% 102.2% 101.4% 101.8% 104.6% 102.4% 102.3% 101.3%

No. of holidays +1 -1 ±0 ±0 +1 -1 +1 +1 +1 ±0 ±0 +1 +1 -1 ±0 ±0 -1 ±0 +1

After adjustment for weekends/holidays 100.0% 99.2% 99.7% 99.7% 102.2% 101.0% 102.0% 101.4% 100.6% 99.8% 98.8% 99.7% 99.4% 102.5% 100.7% 98.7% 100.8% 100.1% 100.3%

No. of cars parked 102.1% 99.8% 98.6% 100.4% 103.0% 99.6% 101.4% 101.2% 100.8% 97.1% 100.0% 98.9% 98.6% 98.7% 98.4% 95.6% 98.4% 98.5% 99.6%

No. of visitors 102.4% 100.0% 99.1% 100.7% 103.5% 98.4% 102.3% 101.3% 101.0% 97.3% 99.1% 100.6% 99.0% 98.4% 99.9% 96.0% 98.3% 98.6% 99.8%

Monthly March April May 1st quarter June July August 2nd

quarter 1st Half September October November 3rdquarter December January February 4th

quarter 2nd half Total

Sales 112.8% 95.8% 100.0% 103.3% 95.4% 95.2% 99.0% 96.4% 100.0% 96.3% 94.5% 100.8% 97.3% 94.9% 94.4% 99.6% 95.8% 96.5% 98.2%

No. of customers through checkout 104.0% 97.7% 102.2% 101.4% 96.0% 94.0% 98.1% 96.1% 98.7% 94.1% 94.9% 100.5% 96.5% 95.2% 93.9% 99.5% 95.9% 96.2% 97.4%

Average customer Transaction 108.5% 98.1% 97.9% 101.9% 99.4% 101.3% 100.9% 100.5% 101.3% 102.3% 99.5% 100.3% 100.8% 99.6% 100.6% 100.1% 100.1% 100.4% 100.8%

No. of holidays ±0 ±0 +1 +1 -1 ±0 +1 ±0 1 -1 ±0 +2 +1 -1 ±0 ±0 -1 ±0 +1

After adjustment for weekends/holidays 112.8% 95.8% 98.6% 102.8% 97.0% 95.2% 97.0% 96.5% 99.6% 99.4% 94.5% 96.0% 96.6% 97.3% 94.4% 99.6% 96.8% 96.7% 98.1%

No. of cars parked 102.0% 97.6% 100.3% 100.1% 97.0% 95.7% 99.6% 97.5% 98.7% 95.9% 96.4% 99.8% 97.5% 96.4% 96.4% 102.5% 98.1% 97.8% 98.3%

No. of visitors 103.0% 97.2% 100.6% 100.3% 96.1% 95.8% 100.0% 97.4% 98.8% 95.1% 95.4% 101.1% 97.2% 95.0% 95.3% 102.0% 97.0% 97.1% 98.0%

7

Monthly Data (Existing 58 malls, on a year-on-year basis)


(Reference) Monthly Data in FY2013 (Existing 55 malls, on a year-on-year basis)

March April May 1st quarter June July August 2nd quarter 1st Half September October November 3rd quarter December January February 4th quarter 2nd Half Total

All specialty stores 102.5% 96.6% 99.7% 99.7% 104.8% 97.4% 103.7% 101.7% 100.8% 99.8% 98.8% 102.2% 100.2% 99.9% 100.7% 98.7% 99.9% 100.1% 100.4%

Large specialty stores 96.3% 91.2% 96.1% 94.5% 104.7% 92.8% 101.5% 99.3% 96.9% 96.2% 101.1% 101.4% 99.6% 98.5% 103.0% 109.0% 102.5% 101.2% 99.0%

Apparel 105.4% 95.5% 103.7% 101.5% 108.1% 96.5% 105.1% 102.8% 102.2% 102.0% 95.7% 102.8% 100.0% 100.4% 98.9% 96.8% 99.1% 99.5% 100.8%

Accessories 105.1% 98.0% 102.4% 101.9% 105.0% 95.6% 104.0% 101.4% 101.6% 100.8% 98.3% 103.3% 100.8% 98.9% 100.7% 99.7% 99.7% 100.2% 100.9%

Miscellaneous goods 102.0% 94.9% 99.2% 98.8% 103.0% 95.9% 101.9% 100.1% 99.5% 99.0% 98.4% 100.8% 99.4% 100.2% 100.7% 99.7% 100.2% 99.9% 99.7%

Drinking and eating 101.8% 99.3% 100.0% 100.4% 105.5% 99.2% 104.2% 102.9% 101.7% 100.0% 101.2% 102.7% 100.7% 100.7% 100.9% 96.3% 99.6% 100.1% 100.9%

Amusement 101.3% 97.5% 83.0% 93.8% 89.7% 106.4% 103.3% 101.2% 97.7% 90.6% 93.8% 96.8% 93.5% 96.2% 100.3% 87.6% 95.4% 94.5% 96.1%

Services 102.0% 102.2% 102.7% 102.3% 105.6% 102.4% 104.6% 104.1% 103.3% 105.2% 106.3% 105.0% 105.5% 104.7% 107.9% 98.1% 103.6% 104.5% 103.9%

Specialty stores subtotal 103.3% 97.3% 100.2% 100.4% 104.9% 98.0% 104.0% 102.1% 101.2% 100.3% 98.5% 102.4% 100.4% 100.2% 100.5% 97.3% 99.6% 100.0% 100.6%

March April May 1st quarter June July August 2nd

quarter 1st Half September October November 3rd quarter December January February 4th

quarter 2nd Half Total

All specialty stores 112.8% 95.8% 100.0% 103.3% 95.4% 95.2% 99.0% 96.4% 100.0% 96.3% 94.5% 100.8% 97.3% 94.9% 94.4% 99.6% 95.8% 96.5% 98.2%

Large specialty stores 128.3% 90.5% 95.8% 105.4% 94.5% 96.7% 97.6% 96.3% 100.8% 94.3% 91.2% 102.0% 95.9% 92.9% 91.1% 88.9% 91.3% 93.3% 97.0%

Apparel 105.6% 95.4% 98.6% 100.1% 94.2% 93.3% 98.0% 94.9% 97.5% 99.4% 96.1% 99.9% 98.5% 94.8% 92.9% 100.7% 95.1% 96.7% 97.1%

Accessories 125.5% 92.2% 94.5% 105.2% 90.3% 95.3% 100.3% 95.3% 100.3% 93.7% 92.5% 104.3% 96.8% 93.1% 95.4% 99.3% 95.3% 96.0% 98.2%

Miscellaneous goods 118.3% 94.0% 97.2% 104.1% 95.0% 97.6% 99.8% 97.5% 100.9% 96.1% 96.5% 101.7% 98.2% 94.2% 96.7% 98.6% 96.2% 97.1% 99.0%

Drinking and eating 104.0% 99.8% 103.6% 102.5% 96.8% 96.9% 100.8% 98.4% 100.4% 95.0% 96.4% 104.2% 98.5% 95.3% 95.9% 102.1% 97.3% 97.9% 99.2%

Amusement 109.2% 110.1% 126.7% 114.8% 113.9% 79.4% 100.4% 95.8% 104.6% 92.9% 81.6% 84.9% 86.9% 100.7% 91.0% 101.0% 97.0% 92.3% 98.8%

Services 107.1% 96.0% 98.6% 100.8% 97.7% 98.9% 94.9% 97.2% 98.8% 94.6% 92.5% 96.3% 94.5% 92.7% 94.8% 101.2% 96.0% 95.2% 97.1%

Specialty stores subtotal 110.8% 96.4% 100.5% 102.9% 95.5% 94.9% 99.2% 96.5% 99.7% 96.6% 94.9% 100.7% 97.5% 95.1% 94.9% 101.2% 96.5% 96.9% 98.3%

8

Year-on-Year Changes in Sales at Specialty Stores in AeonMalls by Segment (Year-on-year changes in 58 existing malls)


(Reference) Monthly Data in FY2013 (Existing 55 malls, on a year-on-year basis)

Location: No.1 Bei Qing Road, Changping District, Beijing

Opening: November 7, 2008(Switched from a project management contract signed

at the time of opening to a master lease in September 2011)

Site area: 89,000 m2


Parking: 3,000 cars Specialty stores:100Anchor store: AEON (GMS)

980.0%

100.0%

120.0%

140.0%

160.0%

180.0%

1-3月 4-6月 7-9月 10-12月 1月 2月

80.0%

100.0%

120.0%

140.0%

160.0%

180.0%

1-3月 4-6月 7-9月 10-12月 1月 2月

80.0%

100.0%

120.0%

140.0%

160.0%

180.0%

1-3月 4-6月 7-9月 10-12月 1月 2月

80.0%

100.0%

120.0%

140.0%

160.0%

180.0%

1-3月 4-6月 7-9月 10-12月 1月 2月

北京市中心地

ＮＮ

BeijingAeon Mall Beijing International Mall

Aeon Mall Tianjin Zhongbei

Aeon Mall Tianjin TEDA

Central commercial

district

17 km 44 km

ÆON MALL Tianjin Zhongbei

ÆON MALLTianjin TEDA

ÆON MallTianjin

Meijiang

Aeon Mall Tianjin Meijiang

Total of Jan. –Dec., 2014

Jan. – Feb., 2015

Retail sales in China *1 112.0% 110.7%

Sales at Aeon Mall specialty stores *2 117.9% 129.5%

# of visitors to Aeon Malls *2 121.4% 119.2%

Tianjin

Tianjin Tianjin

2014年 2015年

2014年 2015年

2014年 2015年

2014年 2015


<Location>

Beijing city

center

Location: No. 29 East Road, Tianjin Economic-Technological Development Area

Opening: October 29, 2010Site area: 98,000 m2


Parking: 2,500 cars Specialty stores: 130 Anchor store: AEON (GMS)

Location: No. 1 Fu Sheng Dao, Xi Qing Qu, TianjinOpening: April 28, 2012Site area: 163,000 m2



Location: 111 You Yi Nan Lu, Tianjin Xiqing Economic Development Area, Xiqing,Tianjin, PRC

Opening: January 3, 2014Site area: 75,300 m2



<Tianjin Area>

*1 Source: National Bureau of Statistics of People's Republic of China

Retail sales in China and year-on-year comparison of existing malls

< Changes in Sales at Specialty Stores in Existing Malls >Aeon Mall Beijing International Mall Aeon Mall Tianjin TEDA

Aeon Mall Tianjin Zhongbei Aeon Mall Tianjin Meijiang

Business in China: Malls in the Beijing and Tianjin Areas

*2 Calculated for three malls from January to December 2014 and four malls in January and February 2015.

2014 2015 20152014

2014 2015 2014

Jan.– Mar. Apr.– Jun. Jul.– Sep. Oct.– Dec. Jan. Feb. Jan.– Mar. Apr.– Jun. Jul.– Sep. Oct.– Dec. Jan. Feb.

Jan.– Mar. Apr.– Jun. Jul.– Sep. Oct.– Dec. Jan. Feb.Jan.– Mar. Apr.– Jun. Jul.– Sep. Oct.– Dec. Jan. Feb.

Location: Dongxihu District, Wuhan City, Hubei Province Scheduled opening: December 19, 2014 Site area: 88,000 m2




● Location: 188 Yue Xi Su Zhen Tao Lu, Suzhou Wuzhong, Jiangsu● Opening: Grand opening on April 25, 2014● Site area: 114,000 m2

● Floor area: 154,600 m2

● Total leasing area: 75,000 m2

● Parking: 3,100 cars● Specialty stores: 190● Anchor store: AEON (GMS)

Aeon MallWuhan Jinyintan (Tentative name)

Aeon MallWuhan Shi Qiao

(Tentative name)Aeon Mall

Wuhan WEDZ

10

1st Mall in Hubei Province Aeon Mall Wuhan Jinyintan

Features of the mall

Mall development in Hubei Province Wuzhong Economic Development Zone

1st Mall in Jiangsu Province Aeon Mall Suzhou Wuzhong

● The mall is in the Wuzhong Economic Development Zone, a special economic zone established in the Wuzhong district in the south of Suzhou in 1993.

● The special economic zone was upgraded in 2012 to become a national economic zone, and comprehensive development, involving condominiums, schools, hospitals, and tourist facilities, is underway.

● With the cooperation of the government of the Suzhou Wuzhong Economic Development Zone, “Aeon” has been included in the names of a park and a road in the infrastructure development around the mall.

< Aeon Green Island >Aeon Green Island is situated in the Taihu New City area in the Wuzhong Economic Development Zone in Suzhou and has been developed as a model of new scenic cities in Taihu New City. A 1.1 million square meter area around the mall, which also includes the East Taihu Lake area, has commercial facilities, residential properties, and schools. The key words in the area are the environment and ecology. The area also includes a model zone of eco-friendly activities (over 0.7 million square meters) that has a scenic park, sightseeing roads, cycling roads, and facilities for leisure activities.

< Aeon Road >Aeon Road is a 1.6 kilometer-long arterial road linking the Aeon mall, a residential area, and a scenic area. The road has been developed as a main street in Aeon Green Island.

The environmentally friendly mall< Mall Opening Plan in Suzhou City >

Suzhou Xinqu(Scheduled opening: FY2015)

Suzhou Industrial ParkHu Dong

(Scheduled opening: FY2015)Suzhou Wuzhong


The first Aeon Group building to be rated Two StarsGreen Building Label: Environmental evaluation standards of the Ministry of Construction of China, which are comparable to the CASBEE (Comprehensive Assessment System for Built Environment Efficiency) of Japan

< Mall Opening Plan in Wuhan City >

The Company is carrying out development based on the cooperation agreement signed with the Wuhan City People's Government in 2011, which requires the development of shopping malls at five or more locations in Wuhan City in five years. The Company has determined the opening of two malls in addition to this mall and started construction.

The new mall is located in Dongxihu District, northwest of the center of Wuhan, a central city in the Middle China region going through rapid economic growth with well-developed subways and rapid transit railways and three Development Zones.

The area is adjacent to the eastern side of Wuhan Economic & Technological Development Zone, which is designated as a national level development zone where the population is increasing rapidly. Many foreign-based companies operate in the surrounding areas.

The mall is adjacent to Jinyintan Station, the first station on Subway Line 2, and easily accessible from a major ring road (3rd Ring Road) in the city, and visitors from a wide area can be expected.

A gourmet food section is placed on each floor and matches each theme, comprising a total of 15,000 m2 of a “food” world that is one of the largest among Aeon Malls in China.

Business in China: New Malls Opened in FY2014

Location: #132, Street Sothearos, Sangkat Tonle Bassac Khan Chamkarmon, Phnom Penh (next to Paska River Sofitel Hotel)

Opening: Grand opening on June 30, 2014

Site area: 68,000 m2



Parking: 1,600 motorbikes, 1,400 cars

Specialty stores: 190 stores Anchor store: AEON (GMS)

Location: Canary Complex Area, No.13 Highway, Binh Hoa Ward, Thuan An town, Binh Duong province

Scheduled opening: Grand opening on November 1, 2014 Site area: 62,000 m2



Parking: 6,000 motorbikes,1,000 cars

Specialty stores: 150 Anchor store: AEON (GMS)

11

Business in the ASEAN Region: New Malls Opened in FY2014


Aeon Mall Phnom Penh

The mall is located in the center of the capital Phnom Penh. This area is expected to develop further, with the high-end residential areas and hotels that surround it and given that most residents are middle- and high-income households.

It has an advanced tenant mix. The tenants include 107 opening their first store in Cambodia, 43 outlets of Phnom Penh’s local brands, and 49 Japanese tenants.

It also boasts Cambodia’s largest cinema complex and a skate rink. A local TV station, the most popular among young Cambodians, covers the latest trends.

There is a world food court, the largest in Cambodia, having approx. 1,200 seats, along with restaurants, including stylish open-air eateries.

< TV studio & skate rink >

1st Aeon Mall opening in Cambodia 2nd Aeon Mall opening in VietnamAeon Mall Binh Duong Canary


< Mall Openings in the Suburbs of Ho Chi Minh City >

Mall-opening Scheme

Aeon Mall Binh Duong Canary is managed and operated by Aeon Mall Vietnam Co., Ltd, a wholly-owned subsidiary of the Company, via a master lease license, the first acquired by a Japanese company in Vietnam, and a master lease agreement, signed with Aeon Vietnam.

< Amusement Zone >< World Dining > < Japan Dining >


Aeon Mall BinhDuong Canary

(this mall)

Aeon Mall Tan Phu Celadon (opened in

January 2014)

The mall is located in Binh Duong Province, which is approx. 15 km north of the center of Ho Chi Minh City. It is the fastest-growing region in Vietnam, and the Canary Complex Area, where the mall is located, has been developed through comprehensive community building as a high-end housing area.

The total of 150 stores includes 40 Japan-based tenants and 18 tenants opening their first stores in Vietnam. The restaurant area is one of the largest in Vietnam, with more than 60 tenants. A variety of events are held every week at the three event courts in the building.

12

+54

+20,516

-1,999

+5,737

-1,114

Operating revenue (+26,971 million yen)

(Million yen)

+6,399

-2,978

(Million yen)Operating income (-354 million yen)

FY2014 (March 1, 2014 – February 28, 2015) Details of Changes in Profit and Loss

FY2015

FY2014

FY2015

FY2014

58 existing mallsin Japan

New malls in Japan

Other 58 existing malls in Japan

New malls in Japan

Other

SG&A expenses

13

+6,242 +5,909

Operating revenue (+26,971 million yen)

+7,612

1Q 2Q 3Q

+54(100.0% year on year)

+20,516 +6,399

Operating revenue Operating revenue Revenues increased through a series of new mall openings. While the revenues of the 58 existing malls decreased year on year after Q2, increased revenue in Q1 helped maintain last year’s level.

1Q102.6%

year on year

2Q99.3%

year on year

3Q99.6%

year on year

+7,206

4Q98.7%

year on year

4Q 1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q


(Million yen)

Other changes

FY2015

FY2014

Changes at 58 existing malls in Japan Changes at new malls in Japan

14

+2,053(102.0% year on year)

+14,779 +7,514 +2,978(116.9% year on year)

1Q103.8%

year on year

2Q104.2%

year on year

3Q102.4%

year on year

Operating cost increased through a series of new mall openings The 58 existing malls reduced their costs in Q4, partly due to the end of the increased costs resulting from the sale and leaseback of six

malls to REIT in November last year.SG&A expenses were reduced after the completion of the improvement and expansion of head office functions, both in Japan and overseas.

Operating cost and SG&A (+27,326 million yen)

Operating Cost and Selling, General, and Administrative (SG&A) Expenses

+7,223 +6,895 +7,323 +5,883

4Q97.6%

year on year

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q144.6%

year on year

2Q114.8%

year on year

3Q113.7%

year on year

4Q100.9%

year on year

1Q 2Q 3Q 4Q


Other changes Changes in SG&A expenses

FY2015

FY2014

(Million yen)

Changes at 58 existing malls in Japan Changes at new malls in Japan

FY2015

FY2014

15

-1,999(96.5% year on year)

+5,737 -1,114 -2,978

1Q100.3%

year on year

2Q90.3%

year on year

3Q94.2%

year on year

Operating income Operating income

Operating income (-354 million yen)

-980 -986 +289+1,322

4Q100.6%

year on year

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

1Q 2Q 3Q 4Q

-0


(Million yen)

Other changes Changes in SG&A expensesChanges at 58 existing malls in Japan Changes at new malls in Japan

Operating income was down 0.8% year on year (down ¥354 million) due to the temporary increase in costs at the 58 existing malls and increased SG&A expenses for the improvement and expansion of head office functions in Japan and overseas, despite increased profit from the new mall opening.

In Q4, the 58 existing malls increased their profit in addition to the contribution of new malls, which helped achieve income growth of 7.4% year on year (up ¥1,612 million) in the second half of the fiscal year.

(¥million)

Consolidated (¥ million) FY2014 Ratio FY2013 Ratio YoYGrowth Change

Operating Revenue 203,902 100.0% 176,931 100.0% 115.2% 26,971---

Twelve newly operated malls in JapanIncrease at 58 existing mallsOthers

+¥20,516 million¥54 million

+¥6,399 million

Operating costs 141,464 69.4% 117,117 66.2% 120.8% 24,347---


+¥14,779 million+¥2,053 million+¥7,514 million

Gross profit 62,437 30.6% 59,814 33.8% 104.4% 2,623---


+¥5,737 million-¥1,999 million-¥1,114 million

SG&A expenses 20,565 10.1% 17,586 9.9% 116.9% 2,978

- Enhancement of structures, with an eye on business expansion in Japan and overseas 1Q year on year 2Q year on year 3Q year on year 4Q year on year

+¥1,601 million+¥747 million+¥589 million+¥39 million

Operating income 41,872 20.5% 42,227 23.9% 99.2% (354)

Non-operating profits 2,135 1.1% 1,570 0.9% 136.0% 565---

Contract cancellation fee received from tenants closing storesForeign exchange gainsInterest income

+¥425 million+¥237 million-¥127 million

Non-operating expenses 2,847 1.4% 2,751 1.6% 103.5% 96 - Interest expenses -¥105 million

Ordinary income 41,160 20.2% 41,046 23.2% 100.3% 114 - Non-operating income increased ¥469 million year on year.

Extraordinary gains 1,812 0.9% 6,993 3.9% 25.9% (5,181)--

[FY2014] Gain on sales of assets to REIT[FY2014] Gains on sales of investment securities

¥897 million¥707 million

Extraordinary losses 611 0.3% 7,510 4.2% 8.1% (6,899)--

[FY2014] Losses on disposal of fixed assets[FY2014] Losses on termination of lease agreement

¥159 million¥233 million

Income before income taxes 42,361 20.8% 40,529 22.9% 104.5% 1,832 - Extraordinary gain increased ¥1,718 million year on year.

Income taxes 18,013 8.9% 16,992 9.6% 106.0% 1,021

Minority interests (164) (0.1%) 105 0.1% - (270)

Net income 24,513 12.0% 23,430 13.2% 104.6% 1,082

Comments

16

FY2014 (March 1, 2014 – February 28, 2015) Summary of Income Statement

* Twelve newly operated malls in Japan (FY2013: Five malls, FY2014: Seven malls)

17

FY2014 (March 1, 2014 – February 28, 2015) Summary of Balance Sheets

(¥ million)

Consolidated(¥ million) FY2014 FY2013 Change

Cash and deposits 67,340 47,566 19,774Deposits to associated companies 5,000 17,000 (12,000) - ÆON Group’s surplus fund managementOther current assets 31,231 25,466 5,764

Current current assets 103,572 90,033 13,538

Property, plant and equipment 689,820 557,559 132,260

---

Acquisition of property, plant and equipmentDepreciationSales of real property to REIT

+¥183,416 million-¥26,289 million-¥20,532 million

among others

Intangible fixed assets 3,830 3,570 259

Investments and other assets 103,734 108,081 (4,347) --

Sale of the right to claim the return of guarantee depositsCollection of guarantee deposits

-¥7,890 million-¥4,299 million

Fixed assets 797,385 669,211 128,173Total assets 900,957 759,245 141,712

Income taxes payable 9,436 17,782 (8,346)

Deposits from tenants 47,598 24,903 22,695 - Delay in the return of deposits planned at the end of the fiscal year underreview (from February 28 to March 2) +¥18,718 million

Notes payable-construction 85,585 39,745 45,839Accounts payble-construction 10,259 41,117 (30,858)

Other current liabilities 56,581 60,821 (4,239) --

Current portion of long-term debtCurrent portion of bonds

+¥14,143 million-¥23,000 million

Current liabilities 209,461 184,370 25,090

Long-term liabilities 358,959 276,348 82,611---

Straight bondsLong-term debtLease deposits from lessees

+¥40,000 million+¥32,289 million

+8,375 million

Total liabilities 568,421 460,718 107,702Total equity 332,536 298,526 34,009Equity ratio 36.4% 38.9% (2.5%)

253,798 190,366 63,43228.2% 25.1% 3.1%

0.8 0.7 0.1

Comments

- Outstanding notes payable - construction and accounts payable -construction for new malls in Japan opened in FY2014

Interest-bearing debtRatio of interest-bearing debt to assetsDebt-to-equity ratio (times)

[Change in interest-bearing debt] FY2014 FY2013 Change

Bonds due within one year - 23,000 (23,000)Current portion of long-term debt 24,709 10,566 14,143Straight bonds 65,200 25,200 40,000Long-term debt 163,889 131,599 32,289TOTAL 253,798 190,366 63,432

(¥million)

Consolidated (¥ million) FY2014 FY2013 Change

Cash flowsfrom operating activities 76,152 44,382 31,770

---

--

Net income before taxes and other adjustmentsDepreciation expensesSales money deposited by specialty stores* Effect of difference in refund day, as the last day of FY2014 is a non-business day forthe bank. (from February 28 to March 2)Corporate taxes and other paymentsOther

+¥42,361 million+¥29,574 million+¥22,559 million+¥18,718 million

-¥25,877 million+¥7,534 million

among others

Cash flowsfrom investing activities (127,505) (47,143) (80,362)

--

----

Purchase of property, plant and equipmentPurchase of long-term prepaid expenses(the right to use the land overseas, etc.)

Gain on sales of property, plant, and equipment (REIT, liquidation)Gain on sale of the right to claim the return of guarantee depositsProceeds from collection of guarantee depositsNet increase in guarantee deposits

-¥180,863 million -¥1,089 million* Capital investment

¥181,953 million+¥34,013 million

+¥8,077 million+¥5,712 million+¥8,101 million

among others

Cash flowsfrom financing activities 54,994 17,232 37,762

-----

Proceeds from long-term debtRepayments of long-term debtProceeds from issue of bondsLoss on bond retirementDividends paid

+¥52,707 million-¥10,566 million+¥40,000 million-¥23,000 million

-¥5,012 millionamong others

Cash and cash equivalents atyear-end 67,222 59,096 8,126

Main items

18

FY2014 (March 1, 2014 – February 28, 2015) Summary of Cash Flows

19



ASEAN region ChinaJapan

20

Medium-Term Management Plan

Plan for Number of New Malls

Medium-Term Plan Announced on April 8, 2014 Revised Medium-Term Plan

Total 13

Total 19 Total 19

Total of 51 malls in 3 years Total of 37 malls in 3 years (-14)

[Actual]Total 11

(-2 from plan)

Total 13(- 6)

Total 13(- 6)

(Unit: mall) (Unit: mall)

- In Japan, the timing for opening new malls has been changed based on revised plans and schedules in response to delays in opening malls due to a gap between demand and supply caused by increased demand and a lack of labor in the construction industry, as well as increased construction costs.

- In China, some mall openings have been delayed due to stricter store-opening procedures that have been imposed. (Disclosed in the financial results for the first half on October 3, 2014)

- In the ASEAN region, the business plan for Indonesia was revised, considering factors such as the risk of volatile exchange rates and stricter foreign investment control, and the years for opening the malls have been changed.


21

Medium-term Plan Announced on April 8, 2014 Revised Medium-term Plan

Capital Investment Plan

(in ¥00 million) (in ¥00 million)

Total 1,900

Total 2,300

Total 1,800

[Actual]Total 1,800

(-100 from plan) Total 1,700(-600)

Total 1,200(-600)

Total of ¥600 billion in 3 years Total of ¥470 billion in 3 years (-¥130 billion)

Capital expenditure was reduced by ¥130 billion from the initial plan by revising the mall opening plan




InvestmentCash flow from operating activitiesDebtOther(funds in hand, deposits received,REIT, etc.)

22

Financing plan

900

450

550

600

550

(in ¥00 million)

1,8001,700

1,200

FY2014 FY2015 FY2016

-150

405

634

761

[Ref.] Balance of cash and deposits at the end of FY2014: ¥67.3 billion

Total in 3 yearsCapital Expenditure Fund Allocation

Cash flow from operating activities

Debt Other


23

Asset Management Agreement

Aeon REIT Management (asset management company, a wholly owned subsidiary of

Aeon Co., Ltd.)

Sale-and-leaseback Master lease agreement

Tenants

Sublease agreement

Pipeline and mall management agreement

20-yr. contract, fixed lease payment

Type of Mall Possession # of Malls in Japan

Operating Gross Margin Component Ratio

Owned land and owned building 13 39.2% 13.8%Leased land and owned building 23 32.9% 40.8%Leased land and leased building 30 *1 31.4% 46.5%Property under management contract 4 55.5% 1.6%Other *2 - -13.1% -2.7%

Total 70 30.2% 100.0%

●Profitability by type of mall possession in FY2014

● Mall Sold in FY2014 Name of Mall Aeon Mall Kyoto

Location Kyoto, Kyoto Pref.

Book Value ¥20,532 million

Transfer Value ¥21,470 million

Appraised NOI Yield 5.1%

Date of Transfer Feb. 27, 2015

*1 Includes 19 liquidated assets *2 “Other” includes 69 malls overseas and of Aeon Retail that Aeon Mall is contracted to operate.

イオンリート投資法人

Use of REIT as a Growth Tool We will sell land and buildings we own to a REIT and, at the same time, lease all of the land and buildings from the REIT by signing a sale and leaseback agreement.

We will therefore continue to operate the malls in the same way as we did before the sale, and will receive rents directly from the end tenants. Our lease payments to the REIT will be fixed, which will thus earn stable income, and we will benefit from increased earnings from our business operations. The figure on the lower right provides an overview of the sale of our six existing malls to Aeon REIT as of November 22, 2013. While the market valuation when we

owned and operated the six malls was ¥140 billion, our sale price to the REIT is ¥64.6 billion, as the market valuation is based on ¥4.5 billion paid by us to the REIT for the lease.

While we will lose the unrealized profit of ¥76.7 billion from the increased market valuation of the leased real estate due to the sale of existing property to Aeon REIT, we will lease back the property when the sale takes place and gain a non-asset profit of ¥8.2 billion, which will allow us to maintain an unrealized non-asset profit. The collection of ¥64.6 billion will allow us to create new cash flow and unrealized profit by re-investing in the next new malls to be opened.

We have liquidated assets by selling them to REITs other than Aeon REIT using the same scheme.

Aeon REIT Investment Corporation

Aeon Mall< Overview of sale of six existing malls to Aeon REIT as of Nov. 22, 2013 >

24

3. Planned Projects(In and after FY2015)3. Planned Projects

(In and after FY2015)

Shopping malls Location Scheduled opening date

About 28,300 m²

About 1,800 cars

Aeon Mall Shijonaw ate Shijonaw ate,Osaka Pref.Neyagaw a,Osaka Pref.

Autumn of 2015 About 159,000 m² About 79,000 m² About 4,100 cars

Aeon Mall Tokoname Tokoname, Aichi Pref. Autumn of 2015 About 202,000 m² About 65,000 m² About 4,400 cars

Aeon Mall Sakai Teppocho (tentative) Sakai, Osaka Pref. March 2016 About 102,000 m² Undisclosed About 2,300 cars

Aeon Mall Imabari Shintoshi (tentative) Imabari, Ehime Pref. Spring of 2016 About 122,000 m² About 53,000 m² About 2,900 cars

Aeon Mall Takasaki Ekimae (tentative) Takasaki, Gunma Pref. FY2016 About 7,400 m² Undisclosed Undisclosed

Four other malls (areas to open malls: Tokai, Kinki, Chugoku, and Shikoku regions)

Aeon Mall Ageo (tentative) Ageo, Saitama Pref. Spring of 2017 About 71,800 m² Undisclosed Undisclosed

Aeon Mall Higashimatsumoto (tentative) Matsumoto, Nagano Pref. FY2017 About 62,500 m² Undisclosed Undisclosed

FY2018 Aeon Mall Hiratsuka (tentative) Hiratsuka, Kanagaw a Pref. FY2018 About 126,000 m² Undisclosed Undisclosed

FY2019 Aeon Mall Toki (tentative) Toki, Gifu Pref. FY2019 About 200,000 m² Undisclosed About 4,800 cars

April 2015 About 78,000

Site area Gross leasing area

m² 4,000

m²

carsAbout

About

About

Parking

900 carsAbout 28,800(incl. approx. 9,800 m² under therailway line)

FY2017

FY2016(Plan)

[7 malls]

FY2015(Plan)

[5 malls]

175,000 m²

Aeon Mall Asahikaw a Ekimae Asahikaw a, Hokkaido March 2015

Aeon Mall Okinaw a Rycom Kitanakagusuku, Nakagami-gun, Okinaw a Pref.

About 33,000 m² (incl. parking lots outside mallpremises)

Aeon Mall Tonami Tonami, Toyama Pref. July 2015 About 65,000 m²

25

List of planned new mall openings that have been disclosed

* Only new malls already announced are included above.

Aeon Mall Okinawa Rycom Aeon Mall Shijonawate Aeon Mall TokonameAeon Mall Tonami

Business in Japan: New Business Locations

Location: Awase Land Adjustment Program Area in Kitanakagusuku, Nakagami-gun, Okinawa Pref.

Scheduled opening: April 25, 2015 Site area: About 175,000 m2

Floor area: About 160,000 m2

(incl. a multistory parking garage) Total leasing area: About 78,000 m2

Parking: About 4,000 cars Specialty stores: About 220 stores

Aeon Mall Okinawa Rycom


New Malls in FY2015

Location: 7-2-5 Miyasita-dori, Asahikawa-shi, Hokkaido Scheduled opening: March 27, 2015 Site area: About 28,300 m2

(incl. approx. 9,800 m2

under the elevated line) Floor area: About 47,200 m2

(approx. 76,700 m2 for the entire facility)

Total leasing area: About 28,800 m2

Parking: About 900 cars Specialty stores: About 130 stores

Aeon Mall Asahikawa Ekimae


26

The mall will open as the core facility of the Awase Land Adjustment Project in Kitanakagusuku, a model example of the early commercialization of land formerly used as a US military base. The location will potentially attract visitors from all over Okinawa Island by taking advantage of accessibility through the interchanges of main roads and expressways in the neighboring area.

The mall will offer products and services in four categories: “Gourmet & Shopping,” “Entertainment & Culture,” “Spaces,” and “Services.” Approximately 60 restaurants with around 5,500 seats will form one of the largest collections of restaurants, and events offering a taste of Okinawan culture will be held every day in the events court located in the mall.

The mall will have a total of around 220 stores, including 46 that are opening their first store in the Kyushu and Okinawa region and 70 that are opening their first store in Okinawa.

Rycom Welcome Station, covering an area of 1,600 m2, will be established. The mall will offer tourist services such as a tourism concierge and currency exchange machine to assist travelers to Japan’s leading tourist site, Okinawa.

The mall opened on the lower floors of the building complex that is directly connected to Asahikawa Station, which is being constructed as part of the Kitasaito Asahikawa project led by the Asahikawa city government. It will also contribute to the promotion of the Basic Plan for Activating the Downtown Area of Asahikawa City that has been established by the Asahikawa city government.

Besides introducing 46 local stores in Hokkaido (of which 10 stores have their head offices in Asahikawa City), the mall will distribute information on surrounding tourist facilities, sell duty-free products (some stores), and offer free Wi-Fi areas, etc. to help promote the revitalization of tourism in northern Hokkaido.

A total of 130 stores opened, including 5 that opened their very first store in Japan, 17 that opened their first store in Hokkaido, and 41 that opened their first store in Asahikawa City. Approximately half of all stores opened their first store in Asahikawa, which will revitalize the local communities and create more appeal by proposing new lifestyles to mall visitors.

< Efforts for Tourism Promotion >1. Distributes information on local attractionsThe information counter on the first floor operates in cooperation with Asahikawa’s comprehensive tourism information center (Asa Terasu). It provides information on the areas around Asahikawa Station, local tourist sites, and train and bus arrivals and departures.

2. Provides hospitality to inbound (foreign) visitorsAeon Mall Asahikawa Ekimae and 10 specialty stores sell duty-free products. The mall plans to increase the number of such stores in the future. Five-language touch-panel screens are used for the mall floor map.

< Food Product Area >< Rycom Welcome Station >

< Rycom Village >

< Rycom Aquarium >

< Rycom Sky Diner >

< Rycom Gourmet World >

Business in Japan: New Business Locations

27

Revitalization without increasing floor spaceRevitalization without increasing floor space

< Changes in Sales Made by Tenants after Mall Opening (Aeon prototype malls) >

Revitalization by increasing floor spaceRevitalization by increasing floor spaceRather than only inviting tenants to the areas where the floor space will be increased, revitalize the mall based on the same concept as opening a new mall through the dynamic rezoning of the entire mall, including the additional floor space, and the optimization of the tenant mix. While investment varies depending on the size, the criteria for investment profitability will be an investment EBITDA of 13%, the same criteria as the new mall.

Growth slows in the fourth and fifth years after opening. Large-scale renewal is implemented at the expiration of the six-year fixed-term building lease contracts of specialty stores.The large-scale revitalization of the entire mall is implemented by renewing 40% to 60% of the specialty stores through the introduction of new specialty stores and renewal and rezoning by relocating existing specialty stores. Investment in revitalization without increasing the floor space will be ¥300 million to ¥500 million, which will be recovered within several years.

The average age of Aeon Mall stores is 10.3 years, which is still young, and the value of the malls can be further increased through revitalization.

2,000

2,500

3,000

1年目 2年目 3年目 4年目 5年目

(in ¥100 million)

Business in Japan: Increasing the Earning Power of Existing Malls

300

250

200

Aeon Lake Town (opened in Oct. 2008)

A total of around 430 stores, or more than 60% of all 710 stores, are scheduled to be renewed in Phases 1 and 2. 347 stores including the anchor tenant Aeon Lake Town have been renewed in Phase 1, and around 80 stores will be renewed in Phase 2 in the fall of 2015.

< Example of Large-scale Renewal >

Apr. 24, 2015: 1st phase renewal opening

3478970188Total

140212Outlets

177524283Mori

156372693Kaze

TotalRenovatedRelocatedNew Store

No. of stores renewed in Phase 1: 347 in total

99681219Total2110Outlets483747Mori4930712Kaze

TotalFirst in Saitama Pref.First in KantoFirst in Japan

No. of tenants opening their first store in the region

1st yr. 2nd. yr. 3rd. yr. 4th yr. 5th yr.

28

In Japan: Increase the Earning Power of Existing Malls

FY2014 (Actual)

8 malls

FY2015 (Plan) FY2016 (Plan)

13 malls 18 malls

Revitalization of Existing Malls (Renewal Development)We are implementing large-scale revitalization (renewal) of existing shopping malls and increasing their appeal and freshness to improve their earning power.

[Reference]Aeon Retail Co., Ltd.’s 69 malls managed and operated by the Company

FY2014 (Actual)

17 malls

FY2015 (Plan)

FY2016 (Plan)

19 malls 15 malls

< Large Revitalization Projects >Revitalization opening of Aeon Mall Hanyu on Nov. 29, 2013

Out of a total of 210 stores, 54 new stores opened and 91 stores were relocated or renovated. => 70% renewal of the entire mallGrowth of sales at specialty stores one year after the opening following revitalization: 108.0% (from Dec. 2013 to Nov. 2014)

Revitalization opening of Aeon Mall Hinode on Mar. 20, 2014Out of a total of 160 stores, 29 new stores opened and 39 stores were renovated. => 40% renewal of the entire mallGrowth of sales at specialty stores 11 months after the opening following revitalization: 109.6% (from Apr. 2014 to Feb. 2015)

Renovation of food court dining area and replacement of retail stores

Replacement and renovation of specialty stores

Responses to customers’needs (expansion of children’s space)

29

Promotion concept toward the year 2020

Activities in FY2014 FY2015 Plan

Development of

environment

Promotion

Toward the market of 20 million foreign visitors to Japan by 2020

Business in Japan: Development/Entry into New Market (Foreign Visitors)

Aeon Mall Narita was positioned as a model mall, and around 30 malls were designated as facilities for improving services for foreign visitors. The development of a stress-free environment was prioritized, and special promotions for long holidays such as the Chinese New Year were implemented by the Group as a whole.

Promotion overseas to attract visitors will be strengthened. While further developing the required environment such as multilingualservices in the existing malls, facilities and services for inbound visitors will be actively established in future new malls (Asahikawa, Okinawa Rycom, and Tokoname).

Development of environment: Began accepting the China UnionPay card, installed currency exchangers, and installed ATMs allowing cash advances using foreign-based credit cards.

Activities to provide multilingual mall guidance via touch panels, create pointer tools, and increase the number of duty-free shops.

Mall packed with tourists. Joint PR conducted with GMS. Promotion will also be carried out in cooperation with malls

in China and other countries.

Increase sales by attracting inbound visitors representing a new growth market toward 20 million foreign travelers to Japan by 2020.

2014 2015 2020

The development of an environment for the designated malls for FY2015 is completed.

It is then improved/developed into the required environment.

Advertise through overseas media and tie-ups with travel agencies. Participate in travel expos. Implement active promotion by both inviting and sending

shoppers to the malls.

A surplus is targeted from FY2016 given an increase in profit from existing malls and the number of malls owned by Aeon Malls, which are more likely to be profitable

30

China

Overseas Business

Beijing, Tianjin

ASEAN

Indonesia

Malaysia

Myanmar

Vietnam

Cambodia

Laos

Thailand

ZhejiangJiangsu

ShandongHubei

Guangdong

Aeon Mall Phnom Penh (opened in Jun. 2014)

Aeon Mall Wuhan Jinyintan (opened in Dec. 2014)

Shopping malls with large parking areas are built in many Asian countries. Sufficient visitors to fill the parking lots gather on weekends after the malls are opened, and future growth can be expected.

▲ 10 ▲ 10

▲ 17▲ 20

(in ¥00 million)

< Changes in Store-based Profit (operating gross profit*) >

FY2012 FY2013 FY2014 FY2015

FY2016

Shift to profit in FY2016

No. of malls at fiscal year end

3 4 9 17 23

[Plan]

[Plan] [Plan]

[Plan]

* Operating profit excluding head office (SG&A) expenses

-10 -10-17

-20

Opening Name of Mall Location

Aeon Mall Suzhou Industrial Park East Lake Suzhou,Jiangsu About 99,300 m² About 219,000 m²

Aeon Mall Beijing Fengtai Feng Tai Qu, Beijing About 63,800 m² About 147,300 m²

Aeon Mall Guangdong Panyu Square Guangzhou, Guangdong About 51,400 m² About 172,900 m²

Aeon Mall Suzhou Xinqu Suzhou, Jiangsu About 153,000 m² About 162,000 m²

Aeon Mall Hangzhou Liangzhu Xincheng Hangzhou City , Zhejiang About 94,800 m² About 176,000 m²

Aeon Mall Wu Han WEDZ Wuhan, Hubei About 129,900 m² About 274,600 m²

Aeon Mall Hebei Yanjiao (tentative name) Sanhe City , Hebei About 84,000 m² About 175,000 m²

Aeon Mall Wu Han Shi Qiao (tentative name) Wuhan, Hubei About 46,200 m² About 120,900 m²

Aeon Mall Guangdong Jinshazhou (tentative name) Guangzhou, Guangdong About 84,500 m² About 187,700 m²

Two other malls

FY2016

Site area Floor area

FY2015

31

Beijing, Tianjin, Shandong

Beijing

Tianjin

Jiangsu

HubeiZhejiang

Guangdong

Shandong Jiangsu, Zhejiang

Guangdong

Hubei

Shandong

Number of malls planned to be opened

List of planned mall openings that have been disclosed

* Mall opening plans are shown based on the Japanese accounting year. The fiscal year end of local subsidiaries in China is at the end of December.

* Only new malls already announced are included above.

Aeon Mall Suzhou Industrial Park East Lake Aeon Mall Hangzhou Liangzhu Xincheng

Business in China

Cambodia # of malls planned to beopened

Vietnam # of malls planned to beopened

Indonesia # of malls planned to beopened

FY2015 Aeon Mall Long Bien 1 Aeon Mall BSD CITY 1

FY2016 One mall (Undisclosed) 1

32

The planned site is about five kilometers to the east of Hoan Kiem Lake, located in the center of Hanoi City. LongBien district is specified as a new residential area under the Hanoi City Master Plan established in 2011 (the vision for 2030 towards 2050). In this area, roads and houses are being developed and constructed, and a continuous population inflow is being seen.

Aeon Mall JGC (tentative name)

Aeon Mall Deltamas (tentative name)

Aeon Mall BSD CITY

Number of malls planned to be openedNumber of malls planned to be opened

Vietnam

Indonesia

Opening FY2015Aeon Mall Long Bien

Location: Hanoi IT Park Project in Sai Dong B Industrial Zone, Phuc Dong and Long Bien Ward, Long Bien District, Hanoi,Site area: About 96,000 m2

Floor area: About 110,000 m2

Total leasing area: About 73,400 m2

● Opening on May 30, 2015Aeon Mall BSD CITYIt is located in the south-west of Jakarta. The full-scale development has been underway since 2003. Stores will be opened in the BSD district. The district is expected to develop substantially as the houses, industrial facilities, schools, hospitals, golf courses, sports facilities and others are constructed. In the future, the expressway is planned to extend to this areaLocation: Bsd City, Banten, Tangerang, Republic of IndonesiaSite area: About 100,000m2

Floor area: About 177,000m2

Total leasing area: About 77,000m2

Parking: About 2,100 carsSpecialty stores: About 280Anchor store: AEON (GMS)

(Commencement of construction work on

April 11, 2014)

< Mall Opening Plan in Indonesia >

List of planned mall openings that have been disclosed

Business in the ASEAN Region

Construction commenced on August 24, 2013 (as of October 29, 2014)

33

Performance Plan (Consolidated)

Medium-term Plan Announced on April 8, 2014 Revised Medium-term Plan

Medium-term Plan

(in ¥00 million) (in ¥00 million)

The medium-term plan announced that operating income would be ¥300 billion and ordinary income would be ¥60 billion in FY2016 (ending February 2017). However, we have changed the mall opening plan in Japan in response to growing demand and the resulting labor shortage in the construction industry. We will therefore aim to achieve the announced performance in the next medium term.

Next mediumterm

Operating revenue Ordinary income

Operating revenue Ordinary income

34

Estimated Performance in FY2015 (Ending February 2016)

Amount YoY

Operating revenue ¥238.0 billion 116.7%

Operating income ¥44.5 billion 106.3%

Ordinary income ¥42.0 billion 102.0%

Net income ¥24.6 billion 100.4%

Net income per share ¥107.96 -

Capital expenditure ¥170.0 billion

Depreciation ¥37.0 billion

The information and forward-looking statements, including the earnings forecast, contained in this material are based on information presently available to the company and certain assumptions judged to be reasonable, and the company can give no assurance that its expectations will be achieved. Actual results may differ materially from these projections due to a range of factors.

Performance Plan (Consolidated)

consolidated financial results fy2014 · < ohk machinaka studio > aeon mall wakayama aeon...

Documents