financial results for fy2017 - ir webcasting · 2018-04-17 · i. reaping benefits of rising brand...

（東証１部：8905） As of April 11, 2018

AEON MALL Co., Ltd.(TSE: 8905)

Financial Results for FY2017(March 1, 2017 – February 28, 2018)

Sharinga sense

of lively

participation

1

Contents

Summary of Financial Results●Overview of Consolidated Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ3

●Profit Sharing ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ4

●Overseas: Specialty Store Sales Trends (Existing Malls)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ5

●Overseas: Transitioning to Profitability ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ6

●Overseas: Quarterly Business Trends ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ7

●Overseas: FY2017 New mall Launches ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ8-9

●Japan: Specialty Store Sales at Existing 72 Malls ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ10-12

●Japan: ①Happiness Mall ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ13

●Japan: ②Initiatives to Enhance Customer Drawing Power ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ14

●Japan: Mall Business - FY2017 Existing Mall Renewals ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ15-16

●Japan: Mall Business - FY2017 New Mall Launches ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ17

●Japan: Urban Fashion Bldg Business - FY2017 New Store Launches / FY2017 Existing Store Renewals ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ18

●ESG Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ19-20

●Summary of Income Statement ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ21

●Nominal OP Improvement by Segment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ22

●Business Performance: Regional/Segmental Analysis ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ23

●Summary of Balance Sheet ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ24

●Summary of Statement of Cash Flows ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ25

●Attachment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ27-30

Vision for 2025Vision for 2025 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ32

Breakdown of Operating Income / Financial Indicators ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ33

Medium-Term Management Plan (FY2017 to FY2019)●Growth Initiatives ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ36-37

●Consolidated Business Targets

Consolidated Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ39

Results by segment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ40

Number of New Mall Openings and Malls to be Revitalized・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ41

Capital Investment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ42

Financing plans and Investment break down ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ43

●Overseas Business

Capturing Asian Growth Opportunities

I. Reaping Benefits of Rising Brand Penetration (via Area-Dominant Strategy) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ45-48

II. Development and Management of Superior Malls ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ49

III. Measures to Increase Operating Revenues ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ50

New Mall Openings: Medium-Term Management Plan ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ51

Overseas Businee Operating Income・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ52

Beijing and Tianjin Areas ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ53

Jiiangsu and Zhejiang Areas / Hubei Area / Guangdong Area ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ54

Vietnam ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ55

Indonesia / Cambodia ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ56

●Domestic Business

SC Industry Comparison with the U.S. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ58

Assessing the Domestic Market ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ59

Development of Latent Sources of Domestic Demand

I. Hapiness Mall Project・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ60-62

II. Promotion of Localization・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ63

Becoming the Overwhelmingly Dominant Mall in Each Region

I. Floor Expansion and Effective Revitalization Measures ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ64-70

II. New Mall Openings in Untapped Territory ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ71-72

III. Development of New Formats ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ73

IV. Improvement of ES for Tenants ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ74

Capturing Urban Growth Opportunities

I. Establishment of Branding for New OPA ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ75

Optimal Financing Mix / Organizational Structures to Support Growth

I. Financing to Support Growth Business Model ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ76

II. Promotion of Diversity Management ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ77

Business Targets and Guidance (Consolidated)

FY2018 Guidance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ79

Profit Sharing ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ80

Summary of Financial ResultsSummary of Financial Results

2

3

FY2017: Review of Consolidated Results (March 1, 2017 – February 28, 2018)

*1 Includes malls opened between March 1, 2017 and February 28, 2018.

*2 Includes management and operation of largecommercial facilities of AEON Retail Co., Ltd. in70 locations.

*3 The property management contract forSHOPPING CENTER SOYOCA FUJIMINO ended on February 20, 2018.

*4 The property management contract for Nara Family ended on February 28, 2018.

*5 The Company acquired AEON Lake Town OUTLET on February 28, 2018.

*6 Sannomiya OPA closed on February 28, 2018.

Overview of Consolidated Results

（Unit: ¥, millions)

（Unit: ¥, millions)

Revenue and income increased, and operating income grew for the third consecutive year due to improved profits in overseas business.

Record highs in operating revenue, operating income, ordinary income and net income.

109.5

－

5,731

1,455 Selling,general and administrative expenses

4,275

26,857 105.7

2,602

25,401

46,42044,935

105.6Ordinary income

Operating income

134.29

49,02249,211

107.1Net income attributableto owners of parent 30,542 28,527 2,014

－

Gross Profit 70,336212,042288,111

FY2017(Actual)

FY2016(Actual)

Operating revenue

Operating costs 199,456269,793

Year-on-year

%Change

18,31712,586 106.3

106.8

108.176,068

125.45Net income per share (yen) 129.71

48,50050,000

103.529,500

101.1

－

98.4

－－

Actualvs. Plan

97.7

－

－

295,000－

FY2017(Plan)

－

Debt-equity-ratio(times)

EBITDA

Net Debt-equity-ratio(times)

1,123,781Total assets

87,654

1.133.2

373,572

0.9

Equity

Equity ratio(%)

Vietnam 0

Urban styleShopping Center(OPA)

2 21

Total 10 174

1 2

China 4 17Cambodia 0 1

Number ofnew malls opened

Number of stores(As of February 28,2018)

Japan 5 150

4Indonesia

*2,3,4,5

*1

*6

4

Profit Sharing

The year-end dividend for FY2017 is ¥19, an increase of ¥3 from our initial plan (¥16).

In our dividend policy, we raised the consolidated payout ratio target from 20% to 25% or more.

・Overseas business is entering the stage where it can generate cash flow. ・Net income attributable to owners of parent for FY2017 exceeded our initial plan.


Fiscal YearDividend per share

Payout ratioMid-term Year-end Full year

FY2016 ¥13.50 ¥13.50 ¥27.00 21.5 %

FY2017 ¥16.00 ¥19.00 ¥35.00 26.1 %

vs. plan － +¥3.00 +¥3.00 +1.4 %

YoY +¥2.50 +¥5.50 +¥8.00 +4.6 %

Initial Plan

FY2017 ¥16.00 ¥16.00 ¥32.00 24.7 %

5


Factors Behind Sales Growth:・Expansion of customer base with rising income & consumption・Population growth in market area of malls opened in regions where urban

development is taking place.

Overseas: Specialty Store Sales Trends (Existing Malls) 【Capturing Asian Growth Opportunities】

ASEAN

Vietnam Cambodia

FY2016Jan-Dec

（Cumulative）

FY2017Jan-Dec

（Cumulative）

FY2016Jan-Dec

（Cumulative）

FY2017Jan-Dec

（Cumulative）

Specialty Store Sales 117.4％ 118.6% 120.7％ 114.5％

Visitor Traffic 109.1％ 102.2％ 121.7％ 111.6％

ChinaFY2016Jan-Dec

（Cumulative）

FY2017Jan-Dec

（Cumulative）

Specialty Store Sales 115.4％ 118.0％

Visitor Traffic 106.2％ 110.5％

China: Existing Malls, YoY ASEAN: Existing Malls, YoY

※Calculations based on malls where YoY numbers are available.

※Indonesia: Data omitted owing to local business practices and difficulty in securing accurate specialty store sales numbers

<China> <Vietnam> <Cambodia>No. of VisitorsSpecialty Store Sales No. of VisitorsSpecialty Store Sales No. of VisitorsSpecialty Store Sales

FY2017: Existing Malls, YoY (Quarterly)

*Overseas corporate affiliates have fiscal years ending in Dec.

Note: A renewal has been in progress in Cambodia since March following the expiration of tenant contracts (40% of total).

6

Note: Malls that opened by the previous fiscal year. Years in parentheses are the opening year.

China ASEAN

Shift to Profitability

8 malls ６ mallsBeijing Int’l Mall (2008) Tianjin Zhongbei (2012) Tan Phu Celadon (2014)

Suzhou Wuzhong (2014) Wuhan Jinyintan (2014) Phnom Penh (2014) BSD CITY (2015)

Suzhou Yuanqu Hudong (2015) Hangzhou LiangzhuXingcheng (2015) Long Bien (2015) Binh Tan (2016)

Wuhan Jingkai (2015) Suzhou Xinqu (2015) Bin Duong Canary (2014)

Loss Making

5 mallsTianjin TEDA (2010) Tianjin Meijiang (2014)

Beijing Fengtai (2015) Gaungzhou PanyuSquare (2015)

Heibei Yanjiao (2016)


Overseas: Transitioning to Profitability【Capturing Asian Growth Opportunities】

In FY20178 Chinese malls and 6 ASEAN malls became profitable

7


FY2016 FY2017

Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Ｑ4 Full-year

10,052

+3,003

1,071

+875

62

+904

32,611

2,879

-884

7,316

624

-366

+1,087+2,518 +2,306 +1,714 +9,959

+875 +1,375 +1,005

-197 -94 196 -483 618

-1,074 -1,036 -846 -842 -3,799 -161

YoY -39 +340 +464 +896 +1,662 +913

YoY -73 +219 +352

6,410 5,910 6,337 7,048 25,707 7,498Operating revenue

Gross profit

Operating income

-387

YoY +3,420

+822

+670 +2,915

7,744

+1,407

565

+659

-418

+427

+1,405 +6,904

+3,362

◆Quarterly Business PerformanceUnit：¥, Millions

FY2017: ・OP improvement of ¥2.9 bn (China: + ¥2.3 bn, ASEAN: + ¥0.5 bn)（Full-year FY2016: ＋¥1.6 bn（China: + ¥0.9 bn, ASEAN: ＋ ¥0.6 bn）

・Operating income turned positive in Q4 (3 months)・Although operating income was still negative at -¥0.8 bn, depreciation and amortization

and accrued average lease expenses were ¥10.9 bn, generating operating cash flow of ¥10.0 bn.

Overseas: Quarterly Business Trends【Capturing Asian Growth Opportunities】

8

AEON MALL Tianjin Jinnan AEON MALL Nantong Xinghu

AEON MALL Wuhan Jinqiao AEON MALL Foshan Dali


Overseas: FY2017 New Mall Launches【Capturing Asian Growth Opportunities】

Opening: Oct 27, 2017Land Area: 91,000㎡ Lease Area: 70,000㎡Parking Space: 2,600 Tenants: 210 Stores

Opening: Dec 1, 2017Land Area: 113,000㎡ Lease Area: 77,000㎡Parking Space: 3,000 Tenants: 280 Stores



*Fiscal year of opening given is Japanese accounting fiscal year. Overseas local offices close their books at the end of December.

9

The Number One Food Space in East JakartaStrengthening the Amusement Aspect

Overseas: FY2017 New Mall Launches【Capturing Asian Growth Opportunities】

AEON MALL Jakarta Garden CityOpening: Sep. 30, 2017Land Area: 85,000㎡Lease Area: 63,000㎡Parking Space: 3,000Tenants: 220 Stores

*Fiscal year of opening given is Japanese accounting fiscal year. Overseas local offices close their books at the end of December.


＜FY2017＞

＜FY2016＞

10

Specialty store sales grew +2.2% year on year (+2.4% after adjustment for weekend/holidays),driven by the effect of floor-space expansion and renewals that we have been strengthening since FY2016.


Japan: Specialty Store Sales at Existing 72 Malls

Specialty store sales

After adjustment for weekend/ holidays 98.4% 98.6% 100.5% 99.1% 99.2%

No. of holidays ±0 ±0 ▲ 1 ±0 ▲ 1

Before adjustment for weekend/ holidays 98.4% 98.6% 99.7% 98.8% 98.9%

1stQuarter

2ndQuarter

3rdQuarter

4thQuarter Total

FY2016

No. of customers through checkout * 97.0% 98.2% 102.3% 99.1% 99.1%

Average customer Transaction * 101.5% 100.5% 97.4% 99.7% 99.8%

No. of cars parked 99.2% 99.7% 102.5% 99.5% 100.2%

No. of visitors 97.4% 98.6% 100.8% 99.0% 98.9%

*GMS and other anchor tenant data not included.

Specialty store sales

December January February

After adjustment for weekend/ holidays 104.3% 103.3% 103.8% 102.5% 100.6% 99.7% 98.8% 99.8% 101.0% 102.4%

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

Before adjustment for weekend/ holidays 103.4% 103.3% 103.4% 101.6% 100.6% 99.7% 101.3% 100.4% 101.0% 102.2%

Total2nd Half4th

Quarter

FY2017

3rdQuarter

2ndQuarter 1st Half

1stQuarter

No. of customers through checkout * 104.0% 103.4% 103.7% 99.6% 99.2% 98.3% 100.4% 99.2% 99.4% 101.6%

Average customer Transaction * 99.4% 99.9% 99.7% 102.0% 101.4% 101.4% 100.8% 101.2% 101.6% 100.6%

No. of cars parked 102.6% 101.9% 102.3% 100.6% 98.3% 99.5% 99.3% 99.0% 99.8% 101.0%

No. of visitors 101.9% 101.9% 101.9% 99.1% 97.2% 97.9% 98.8% 97.9% 98.5% 100.2%

11


Japan: Specialty Store Sales at Existing 72 Malls: YoY% Change by Segment

FY2016

98.4% 98.6% 99.7% 98.8% 98.9%

101.3% 100.8% 100.3% 100.2% 100.6%

Apparel 97.0% 96.4% 95.3% 94.5% 95.7%

Accessories 95.5% 96.7% 97.0% 98.1% 96.8%

Miscellenaeousgoods 100.8% 102.5% 102.3% 101.4% 101.7%

Hobby Items 100.5% 100.6% 99.6% 101.9% 100.7%

Groceries 98.7% 104.7% 108.3% 108.4% 105.1%

Drinking and eating 99.0% 99.9% 101.5% 99.9% 100.1%

Amusement 98.9% 96.8% 120.8% 101.3% 103.3%

Services 97.9% 97.1% 98.5% 101.7% 98.7%

98.1% 98.4% 99.6% 98.6% 98.6%

All Specialty stores

Large Specialty storessubtotal

Specialty storessubtotal

1stQuarter

2ndQuarter

3rdQuarter

4thQuarter Total

* Cinema sales are included in Amusement.

December January February

103.4% 103.3% 103.4% 101.6% 100.6% 99.7% 101.3% 100.4% 101.0% 102.2%

106.2% 106.8% 106.5% 108.4% 103.8% 103.5% 102.1% 103.3% 105.6% 106.0%

98.6% 98.8% 98.7% 100.6% 99.0% 96.4% 98.5% 97.9% 99.2% 99.0%

99.5% 101.6% 100.5% 97.6% 94.5% 97.8% 99.3% 96.8% 97.1% 98.8%

105.9% 109.2% 107.5% 107.1% 105.4% 104.2% 106.6% 105.3% 106.1% 106.8%

104.7% 103.8% 104.2% 103.3% 100.6% 101.9% 106.4% 102.5% 102.9% 103.6%

113.3% 111.3% 112.4% 106.7% 107.4% 106.5% 106.4% 106.8% 106.8% 109.4%

103.2% 102.9% 103.0% 101.5% 100.6% 101.1% 102.9% 101.4% 101.4% 102.2%

115.5% 106.4% 110.7% 83.5% 94.9% 89.7% 87.0% 90.9% 87.2% 99.4%

106.6% 103.1% 104.7% 103.3% 105.0% 103.5% 102.9% 103.8% 103.6% 104.2%

103.0% 102.8% 102.9% 100.8% 100.1% 99.2% 101.2% 100.0% 100.4% 101.7%

4thQuarter 2nd Half Total

1stQuarter

2ndQuarter 1st Half

3rdQuarter

FY2017

Drinking and eating sales, which were strengthened through renovations, continued to perform well and sales increased 2.2% YoY. In the second half, the growth rate slowed (+1.0% YoY) as cinema revenues declined sharply by 28.8% YoY because of the drop-off after hit movies in the previous year. This negatively impacted both revenues and number of visitors.

12

FY2016 FY2017


Since the 2nd half of 2016, sales growth at AEON MALL has exceeded not only the shopping

center sector, but other retail sectors as well.

◆YoY Sales Comparisons: AEON MALL, SC Sector, Dept. Stores, Chain Stores§ FY2016 3-month averages for SCs, department stores, and chain stores, uses simple monthly averages. § YoY Comparisons for AEON MALL are before calendar adjustments.

Source: Japan Council of Shopping Centers, Japan Department Store Association, Japan Chain Store Association

Japan: Specialty Store Sales at Existing 72 Malls: YoY % Change vs Industry

Mar-May Jun-Aug Sept-Nov Dec-Feb Mar Apr May Jun Jul Aug NovSept Oct

AEON MALLSC SectorDept. StoresChain StoresDept. Stores

Chain StoresSC Sector

AEON MALL(Existing Malls)

Dec Jan Feb

13

Japan: (1) Happiness Mall【Development of Latent Sources of Domestic Demand】


Opera de AEON MALL Tokoname Comedy Expo 2017 in Chita PeninsulaOpera de AEON MALL Cinema Presentation

Date: Oct. 28Location: AEON MALL Matsumoto

Traveling show based on a tie-up with The Japan Opera Foundation. 10 locations in FY2017, with 30 scheduled for FY2018.

Date: Sept. 23-24Location: AEON MALL Tokoname

An initiative of the “Chita Cat Project” launched by AEON MALL Tokoname, Tokoname City and Chubu Centrair International Airport to revitalize the Chita Peninsula region. 100,000 people attended over the 2-day period.

Date: Nov. 23Location: AEON MALL Nagakute/Tokoname

To commemorate this performance in Aichi, a “one coin” (500 yen) presentation was held at Aeon Cinema.

A place for customers to create happy memories

Making AEON MALL a place that people are excited to visit and satisfied when

they leave

HEALTH

Health in body and mind

OPPORTUNITY

Opportunities to encounter new values and lifestyles

WELLNESS

Casual enjoyment of art and culture

COMMUNITY

Activities to promote social interaction among people in the community

Four Pillars of the Happiness Mall Project

Japan: (2) Initiatives to Enhance Customer Drawing Power

Aeon Black FridayHeld at AEON MALLs throughout Japan for 4 days from November 23-26

14

【Development of Latent Sources of Domestic Demand】

Held a campaign refunding 20% of WAON Points used in conjunction with Aeon Black Friday.


15


Japan: Mall Business – FY2017 Existing Mall Renewals【Becoming the Overwhelmingly Dominant Mall in Each Region】

Opening: December 2015Land Area (㎡): 202,000Leasable Space (㎡): 86,700of which Cinema (㎡): 3,900

Parking Space: 4,000Tenants (Specialty Stores): 180

Roughly 80% (146 stores) of the existing 180 specialty stores have undergone renewals. Of the 82 retailers launching stores for the first time, 55 are entering Yamanashi for the first time.

Evolving into the Overwhelmingly Dominant Regional Mall in Yamanashi Pref.

AEON MALL Kofu Showa Expansion - Renewal Open: Nov. 23, 2017Opening：March 2011Land Area (㎡): 119,000Leasable Area (㎡): 70,000 (＋22,000）Parking Space: 3,500（+1,000) Tenants (Specialty Stores): 180（＋50）

AEON MALL TokonameOpening of Expanded Cinema: July 12, 2017

16


Specialty store sales increased 4.5%33 existing malls that underwent renewal in FY2016 and FY2017

Japan: Mall Business – FY2017 Existing Mall Renewals【 Becoming the Overwhelmingly Dominant Mall in Each Region】

146 AEON MALL Suzuka Suzuka city, Mie Prefecture November 23 180 62 AEON MALL Kofu Showa Showa-cho, Nakakoma-gun, Yamanashi Prefecture November 23 180

November 17 49September 15 53

Kurashiki city, Okayama Prefecture AEON MALL Kurashiki 240

16 AEON MALL Tamadaira-no-mori Hino city, Tokyo Prefecture October 19 130 27 AEON MALL Omuta Omuta city, Fukuoka Prefecture July 14 130

1 AEON MALL Tokoname Tokoname city, Aichi Prefecture July 12 180

160 57April 28 49

AEON MALL Nogata Nogata city, Fukuoka PrefectureJuly 14

14035

AEON MALL Hinode Hinode-cho, Nishitama-gun, Tokyo Prefecture April 21

AEON MALL Kawaguchi Maekawa Kawaguchi city, Saitama Prefecture March 24 170 15 AEON MALL Rinku Sennnan Sennan city, Osaka Prefecture April 6 170 132

March 17 32

AEON MALL Yamato Yamato city, Kanagawa Prefecture March 18 90 38

120Niihama city, Ehime PrefectureJuly 25

AEON MALL Niihama15

AEON MALL Hamamatsu Shitoro Hamamatsu city, Shizuoka Prefecture March 17 160 60

Ichinomiya city, Aichi PrefectureJune 9 18

170 AEON MALL KisogawaMarch 3 83

Shopping malls LocationDate

reopenedTenants

No. of tenants onreopening

17


Japan: Mall Business – FY2017 New Mall Launches【 Becoming the Overwhelmingly Dominant Mall in Each Region 】

AEON MALL Kobe Minami（Hyogo Pref., Kobe City）Opening: Sept. 20, 2017 (Grand Opening)Land Area: 38,000㎡ Lease Area: 39,000㎡Parking Space:1,400 Tenants:130 Stores

Opening: April 21, 2017Land Area: 12,200㎡ Lease Area: 9,100㎡Parking Space: 400 Tenants: 35 Stores

Opening: April 27, 2017Land Area: 50,000㎡ Lease Area: 50,000㎡Parking Space: 3,100 Tenants: 160 Stores

Opening: March 24, 2017Land Area: 128,000㎡ Lease Area: 63,000㎡Parking Space: 3,400 Tenants: 170 Stores

AEON MALL Shin-Komatsu（Ishikawa Pref., Komatsu City）

AEON MALL Tokushima（Tokushima Pref., Tokushima City）

AEON SENRITO Specialty Hall（Osaka, Toyonaka City）

Opening: Sept. 21, 2017Land Area: 62,500㎡ Lease Area: 49,000㎡Parking Space: 2,300 Tenants: 170 Stores

AEON MALL Matsumoto（Nagano Pref., Matsumoto City）

*Phase One opened in June.

18


Mito OPA（Mito City, Ibaraki Pref）

Opening: March 18, 2017Site Area: 3,500㎡Gross Lease Fl. Area: 12,500㎡Specialty Stores: 61

Takasaki OPA（Takasaki City, Gunma Pref）

Opening: Oct. 13, 2017 Site Area: 7,400㎡Gross Lease Fl. Area: 26,000㎡Specialty Stores: 160

Proposing Lifestyles: The 1st All New and Reborn OPA

Shinsaibashi OPA Takasaki OPA

Apparel 45% 32%

Accessories 9% 8%

Miscellaneous goods 9% 21%

Food Items 1% 16%

Dining 15% 15%

Services 20% 5%

Amusement 1% 4%

Japan: Urban Shopping Center Business – FY2017 New Store Launches【Capturing Urban Growth Opportunities】

Compared with the previous OPA, composition of Miscellaneous Goods, Food, and Dining expanded

Japan: Urban Shopping Center Business – FY2017 Existing Store Renewals【Capturing Urban Growth Opportunities】

Enhancing Profitability via Renewal of All 20 Existing Stores

Kitaooji VIVRE Kyoto city, Kyoto Pref. November 2

Kanazawa FORUS Kanazawa city, Ishikawa Pref.Akita OPA Akita city, Akita Pref.

Date reopened

1st: March 17 2nd: April 72nd: April 14 World Porters VIVRE Yokohama city, Kanagawa Pref. 1st: March 17

March 18April 1April 7

September 1October 28

Urban Shopping center Location

Tenjin VIVRE Canal City OPA Akashi VIVRE

Yokohama VIVRE

Fukuoka city, Fukuoka Pref.Fukuoka city, Fukuoka Pref.

Akashi City, Hyogo Pref.

Yokohama city, Kanagawa Pref.

Seismic retrofitting* and refurbishment of interior/exterior and facilities * Seismic retrofitting: A method for substantially improving earthquake resistance to reuse most of an existing building.

Akita OPARenewal Open: Oct. 28, 2017

Site Area: 2,800㎡Gross Lease Fl. Area: 11,500㎡Specialty Stores: 60

19

Selected for 2 ESG Indices Adopted by GPIF For the 3rd Consecutive Year, AEON MALL Has Secured the Highest “Green Star” from GRESB Real Estate

AEON MALL KYOTO and AEON MALL Mito Uchihara Acquire DBJ Green Building Certification*

*Green Building CertificationA program of the Development Bank of Japan Inc. (DBJ) that evaluates real estate properties in five categories: environmental performance of the building, comfort, risk management, consideration for the local environment and community, and collaboration with stakeholders.

AEON MALL KYOTO and AEON MALL Mito Uchihara received the highest5-star rating for properties exhibiting high environmental and social awareness in the five-level Green Building Certification given by the DBJ.

AEON MALL KYOTO AEON MALL Mito Uchihara

AEON MALL Matsumoto Receives ABINC Certification*

*ABINC CertificationA system in which efforts in the creation of biodiversity-friendly green areas are objectively evaluated and certified by the Association for Business Innovation in Harmony with Nature and the Community (ABINC), based on the Guidelines for Sustainable Business Sites created and registered by the Japan Business Initiative for Biodiversity (JBIB).

Malls with CertificationMall Name Date Certified

AEON MALL Toin Feb. 2014

AEON MALL Tamadaira Woods Feb. 2015

AEON MALL Tokoname Feb. 2016

AEON MALL Shijonawate Feb. 2016

AEON MALL Sakai Teppocho Feb. 2016

AEON MALL Nagakute Feb. 2016

AEON MALL Matsumoto Mar. 2018

Examples of Certification Evaluation• Preserved some vegetation on the property and

transplanted tall, medium and low trees to maintain the local landscape and environment.

• Trees that could not be transplanted were used as tables and chairs in the food court out of consideration for the materials cycle.


ESG Initiatives

AEON MALL was evaluated highly in “management policies” and “execution and measurement” with regard to environmental awareness and sustainability. Of the 4 ranks awarded, the Company received the highest “Green Star” rating.

・Relative to an average score of 63 among participating companies and funds, AEON MALL secured a score of 80, the highest ever for the Company (79 last year). ・As regards to the Company’s relative score based on the aggregate score, (GRESB Rating), AEON MALL received the highest “5-Star” rating.・Additionally, the Company secured the highest rating of “A” from GRESB (Disclosure Rating - ESG Information Disclosure Level).

The Global Real Estate Sustainability Benchmark (GRESB）A benchmark evaluating an entity’s real asset environment, social, and governance considerations. The benchmark was established in 2009 led by the major European pension funds who were also leaders in the principles of the United Nations Responsible Investing (PRI) initiative.

①MSCI Japan ESG Select・Leaders Index②MSCI Japan Empowering Women (WIN）Index

Of the three ESG Indices GPIF* has adopted as indices for Investment for Social Responsibility, AEON MALL has been selected for inclusion in the following two.

* GPIF: Government Pension Investment Fund (welfare and national pension plans)An independent administrative agency tasked with administrating and managing pension assets of the

Employees’ Pension and National Pension under the jurisdiction of the Ministry of Health, Labor & Welfare

ESG Initiatives

First Japanese company to become a member of EV100

AEON MALL Makuhari Shintoshin (Grand Mall) and AEON Yume-Mirai Nursery School Nagoya Chaya Conduct Pre-Verification of Conformity with WELL Certification

Initiatives to Prevent Global Warming

◆Third Consecutive Excellence Award at Osaka Stop! Global Warming AwardsAn award for excellence in corporate initiatives in business activities given by the Department of Environment, Agriculture, Forestry and Fisheries of the Osaka Prefectural Government to increase business incentives to stop global warming and to promote the spread of countermeasures to prevent global warming, mitigate the heat island phenomenon and level electricity demand.

◆First Special Excellence Award under the Kyoto City Business Operators’ Emissions Reduction Plan System

We promote the expansion of electric vehicle (EV) charging stations as an environmental and sustainability measure. EV charging stations are now installed at all of our shopping malls* in Japan.

Japan China

*Excluding PM malls (which we manage and operate the building under contract from the owner)*Figures include 70 malls that we manage and operate on behalf of AEON Retail Co., Ltd.

Second Cherry Tree Planting Event in Hanoi, Vietnam

The AEON Environmental Foundation (Chairman Takuya Okuda, Honorary Chairman and Advisor of Aeon Co., Ltd.) held its second cherry tree planting event in Hanoi, Vietnam on Saturday, March 10, 2017 in Hanoi’s Hoa Binh Park (Peace Park).

Two facilities, AEON MALL Makuhari Shintoshin (Grand Mall) and AEON Yume-MiraiNursery School Nagoya Chaya conducted early pre-verification of conformity with the WELL Building Standard (WELL Certification) as domestic commercial facilities.

* WELL Certification (WELL Building Standard)Developed in the U.S. as the world’s first building standard focusing on human health and wellness, this system rates indoor spaces across 7 categories in the relationship between people and buildings.* 7 categories: (1) Air (2) Water (3) Nourishment (4) Light (5) Fitness (6) Comfort (7) Mind

AEON MALL Makuhari Shintoshin AEON Yume-Mirai Nursery School Nagoya Chaya

20

・142 malls in Japan: 1,476 units ・10 malls in China: 461 units

EV100An initiative to promote electric vehicles. Its launch was announced by The Climate Group, an international environmental non-governmental organization working to reduce greenhouse gas emissions, during Climate Week NYC, held from September 18-24, 2017 in New York. EV100 is an international business initiative for corporate promotion of the use of electric vehicles and environmental improvement. The Company has been an official member since November 10, 2017.

AchievementReduction Rate (unit base): 8.3％ (vs. FY2015)

Facilities Covered・AEON MALL Neyagawa ・AEON MALL Tsurumi Ryokuchi・AEON MALL Sakai Kitahanada・AEON MALL Shijonawate・AEON MALL Rinku Sennan ・AEON MALL Sakai Teppocho

Achievement Reduction Rate (total volume base): 13.5％ (vs. FY2013)

Facilities Covered・ AEON MALL Kyoto Gojo・ AEON MALL KYOTO・ AEON MALL Katsuragawa

An award for excellence in corporate initiatives based on a comprehensive evaluation of emissions reduction plans and reports for each 3-year plan period under the business operators’ emissions reduction plan system pursuant to the Kyoto City Global Warming Regulations.


21

Summary of Income Statement


(¥, millions)

Consolidated (¥, millions) FY2017 Ratio FY2016 Ratio YoYGrowth Nominal Chg Comment

Operating Revenue 288,111 100.0% 269,793 100.0% 106.8% 18,317

- Japan: 9 new malls- Japan: Existing 72 malls- Japan: Urban style shopping center business (OPA)- Japan: Other- Overseas malls

+¥9,623 million+¥1,653 million

-¥737 million+¥874 million

+¥6,904 million

Operating costs 212,042 73.6% 199,456 73.9% 106.3% 12,586


+¥10,191 million-¥2,184 million

+¥90 million+¥949 million

+¥3,541 million

Gross profit 76,068 26.4% 70,336 26.1% 108.1% 5,731


-¥567 million+¥3,838 million

-¥827 million-¥75 million

+¥3,362 million

SG&A expenses 26,857 9.3% 25,401 9.4% 105.7% 1,455- Japan: Mall business (excludes OPA)- Japan: Urban style shopping center businessn (OPA)- Overseas business

+¥968 million+¥40 million

+¥446 million

Operating income 49,211 17.1% 44,935 16.7% 109.5% 4,275

Non-operating profits 3,851 1.3% 5,230 1.9% 73.6% (1,378)- Subsidy income- Foreign exchange gains- Contact cancellation fees received from tenants- Interest income

-¥195 million-¥915 million-¥607 million+¥208 million

Non-operating expenses 4,039 1.4% 3,745 1.4% 101.6% 60- Interest expenses- Foreign exchange losses- Loss on valuation of derivatives due to currency hedging

+¥150 million+¥154 million-¥301 million

Ordinary income 49,022 17.0% 46,420 17.2% 106.1% 2,835 * Exchange-related balance of payments -¥769 million

Extraordinary gains 7,790 2.7% 10,931 4.0% 71.3% (3,140)- Gain on sales of fixed assets [Current term: ¥7,133 million, Previous term ¥10,680 million]- Indemnity Principle Gain

-¥3,547 million

+¥631 million

Extraordinary losses 11,752 4.1% 12,184 4.5% 98.4% (198)

- Loss on sales of fixed assets [Current term: ¥3,255 million, Previous term ¥6,752 million]- Loss on disposal of fixed assets- Provisioning for losses from store closures.- Impairment loss- Loss on lease contract cancellations- Provisioning for credit expenses

-¥3,496 million

-¥943 million+¥50 million

+¥3,700 million+¥948 million-¥675 million

Income before income taxes 45,061 15.6% 45,167 16.7% 99.8% (105)

Income taxes 14,800 5.1% 16,708 6.2% 88.6% (1,907)

Net income 30,260 10.5% 28,459 10.5% 106.3% 1,801

Net income (loss) attribute to non-controlling interests (281) (0.1%) (68) (0.1%) － (213)

30,542 10.6% 28,527 10.6% 107.1% 2,014

* 9 new malls in Japan (4 malls opened in 2016, 5 malls opened in 2017)

Net income attribute to owners of parent

22

Mall

Urban Shopping Centers

China ASEAN Total


◆Quarterly OP Change by SegmentUnit: ¥, Millions

In Japan, although income from the urban shopping center business decreased, the mall business was steady.

Overseas business drove growth in income (accounted for 70% of the increase in OP).

(109.5%YoY）

Nominal OP Improvement by Segment

Domestic Business Overseas Business

Operating Revenues（＋¥18,317mn）

＋11,413（Up 4.7％ YoY）

Japan China ASEAN

Business Performance: Regional/Segmental Analysis

＋4,977

＋1,926

＋2,367

＋2,654 ＋707 +1

＋1,358

＋2,318 ＋597 +1

Unit：¥, mn Unit：¥,mnUnit：¥, mn

Operating Gross Profit(＋¥5,731mn）

Operating Profit（＋¥4,275mn）

Japan China ASEAN Adjustments

Japan

China

ASEAN Adjustments

Operating Revenues（＋¥11,413mn）＋12,150

Malls Urban Shopping Center

▲737

Unit：¥, mn

◆Japan: Segmental BreakdownOperating Gross Profit（＋¥2,367mn）

＋3,195

▲827

Unit：¥, mn

Operating Profit（＋¥1,358mn）

＋2,226

▲868

Unit：¥, mn

Malls Urban Shopping Center Malls 23

当期前期FY2017

FY2016

当期前期FY2017

FY2016

当期前期FY2017

FY2016

当期前期FY2017

FY2016

当期前期FY2017

FY2016

当期前期FY2017

FY2016


（Up 26.3％ YoY）

（Up 28.4％ YoY）

Urban Shopping Center

24


Summary of Balance Sheet(¥, millions)

Consolidated (¥, millions) FY2017 FY2016 Change

Cash and deposits 54,586 59,921 (5,335)

Deposits to associated companies 630 11,000 (10,370) - AEON Group's surplus fund management

Other current assets 46,374 39,424 6,949

Current assets 101,590 110,346 (8,756)

Property, plant and equipment 874,267 762,237 112,029 - Acquisition of property, plant and equipment- Depreciation

+¥189,786 million-¥37,403 million

Intangible fixed assets 3,812 4,077 (265)

Investments and other assets 144,110 136,096 8,014 - Long-term prepayment expense (Inc.land-use rights) -¥2,133 million

Fixed assets 1,022,190 902,412 119,778

Total assets 1,123,781 1,012,758 111,022

Income taxes payable 8,677 7,897 780

Deposits from tenants 38,614 35,483 3,131

Accounts payable-construction 86,369 62,500 23,868

Other current liabilities 87,000 106,236 (19,235)- Commercial papers- Bonds due within one year- Current portion of long-term debt

+¥11,000 million-¥10,000 million-¥22,816 million

Current liabilities 220,661 212,117 8,543

Long-term liabilities 517,558 444,437 73,120- Straight bonds- Long-term debt- Lease deposits from lessees

+¥50,000 million+¥17,273 million

+¥4,669 million

Total liabilities 738,218 656,555 81,664

Total equity 385,561 356,203 29,357

Equity ratio 33.2% 34.6% (1.3％)

Equity 373,572 350,073 23,499

Interest-bearing debt 405,749 360,292 45,457

Ratio of interest-bearing debt to assets 36.1% 35.6% 0.5%

Debt-to-equity ratio (times) 1.1 1.0 0.1

Net debt-to-equity ratio (times) 0.9 0.9 0.0

Comment

[Change in interest-bearing debt] (￥million)

FY2017 FY2016 Change

Commercial papers 11,000 - 11,000 Bonds due within one year - 10,000 (10,000) Current portion on long-term debt 29,746 52,563 (22,816) Straight bonds 170,000 120,000 50,000 Long-term debt 195,002 177,728 17,273 Total 405,749 360,292 45,457

25


Summary of Statement of Cash Flows

(¥, millions)

Consolidated(¥ million) FY2017 FY2016 Change

Cash flowsfrom operating activities 80,616 73,646 6,969

- Net income before taxes- Depreciation- Deposits received from specialty stores- Payment of corporate taxes- Gain or loss from sales of fixed assets (net)

¥45,061 million¥38,443 million

¥3,045 million-¥15,956 million

-¥3,877 million

Cash flowsfrom investing activities (142,009) (63,574) (78,435)

- Purchase of property, plant and equipment- Purchase of long-term prepaid expenses (Rights to use overseas land, etc)- Sales of property, plant and equipment- Increase in guarantee deposits (net)

-¥186,525 million-¥3,575 million


*Capital Investment ¥190,100 million

Cash flowsfrom financing activities 44,841 8,312 36,528

- Net increase in short-term debt- Proceeds from long-term debt- Repayment of long-term debt- Proceeds from issuance of bonds- Redemption on maturing bonds- Dividends paid


-¥52,563 million¥50,000 million

-¥10,000 million-¥6,708 million

Cash and cash equivalentsat year-end 54,223 69,593 (15,369)

Main Items

26

Attachment(Mall Data)

Attachment(Mall Data)

27

List of Malls (1)

Shopping malls (Domestic) Opening Parking TenantsLand&

buildingownership

Land lease/Building

ownership

Land&building

lease

Propertymanagement

1 AEON MALL Kawaguchi April 1984 34,000 1,300 90 ◎2 AEON MALL Tsugaru Kashiwa November 1992 40,000 2,600 90 ◎3 AEON MALL Akita September 1993 58,000 3,200 150 ◎4 AEON MALL Futtsu September 1993 28,000 1,400 90 ☆5 AEON MALL Shimoda April 1995 59,000 4,000 120 ◎6 Shopping Mall Festa April 1996 32,000 3,800 90 ◎7 AEON MALL Suzuka November 1996 70,000 4,200 180 ☆8 AEON MALL Sanko December 1996 40,000 2,500 70 ◎9 AEON MALL Uki November 1997 63,000 3,300 100 ☆

10 AEON MALL Kurashiki September 1999 83,000 4,700 240 ☆11 AEON MALL Narita March 2000 65,000 4,000 170 ☆12 AEON MALL Okazaki September 2000 80,000 4,300 170 ◎13 AEON MALL Kawaguchi Maekawa November 2000 66,000 2,400 170 ◎14 AEON MALL Kochi December 2000 57,000 3,100 140 ◎15 AEON MALL Niihama June 2001 66,000 3,500 120 ◎16 AEON MALL Higashiura July 2001 55,000 5,000 110 ☆17 AEON MALL Yamato December 2001 35,000 1,900 90 ☆18 AEON MALL Takaoka September 2002 62,000 3,600 130 ◎19 AEON MALL Itami October 2002 57,000 2,800 150 ☆20 AEON MALL Morioka August 2003 52,000 2,600 130 ☆21 AEON MALL Ota December 2003 62,000 4,200 150 ☆22 AEON MALL Kyoto Gojo March 2004 36,000 1,700 140 ☆23 AEON MALL Hiroshima Fuchu March 2004 98,000 5,000 280 ◎24 AEON MALL Kashihara April 2004 80,000 5,000 230 ◎25 AEON MALL Kisogawa June 2004 66,000 4,400 170 ◎26 AEON MALL Fukuoka June 2004 90,000 5,200 200 ☆27 AEON MALL Hamamatsu Shitoro August 2004 65,000 3,500 160 ☆28 AEON MALL Sakai Kitahanada October 2004 72,000 2,800 170 ☆29 AEON MALL Rinku Sennan November 2004 76,000 4,700 170 ◎30 AEON MALL Nogata April 2005 58,000 3,400 140 ☆31 AEON MALL Miyazaki May 2005 70,000 4,000 180 ◎32 AEON MALL Kumamoto October 2005 73,000 4,500 160 ☆33 AEON MALL Mito Uchihara November 2005 78,000 4,500 200 ☆34 AEON MALL Chiba New Town April 2006 79,000 4,000 180 ☆35 AEON MALL Takasaki October 2006 59,000 3,700 170 ☆

☆Securitized

Total leasing area(m2)

28

List of Malls (2)


buildingownership

Land lease/Building

ownership

Land&building

lease

Propertymanagement

36 AEON MALL Musashimurayama November 2006 78,000 4,000 180 ☆37 AEON MALL Tsurumi Ryokuchi November 2006 53,000 2,200 160 ☆38 AEON MALL Kobe Kita November 2006 55,000 4,000 160 ☆39 AEON MALL Natori February 2007 67,000 3,900 170 ◎40 AEON MALL Hanyu November 2007 75,000 5,000 210 ◎

41 AEON MALL Hinode November 2007 64,000 3,600 160 ◎42 Aeon Lake Town Kaze October 2008 61,000 2,300 230 ◎43 AEON MALL Kusatsu November 2008 78,000 4,500 190 ◎44 AEON MALL Chikushino December 2008 80,000 3,800 210 ◎45 AEON MALL Miyakonojo-Ekimae December 2008 28,000 1,700 100 ☆46 mozo wondercity April 2009 101,000 5,000 230 ◎47 AEON MALL Hiroshima Gion April 2009 50,000 2,800 130 ◎48 AEON MALL Aratamabashi March 2010 38,000 1,700 120 ☆49 AEON MALL Yamatokoriyama March 2010 67,000 4,100 170 ☆50 AEON MALL KYOTO June 2010 51,000 1,100 130 ☆51 AEON MALL Kofu Showa March 2011 70,000 3,500 180 ☆52 AEON MALL Omuta March 2011 57,000 4,800 130 ◎53 Aeon Lake Town Outlet April 2011 23,000 1,100 130 ◎

54 Hiroshima Danbara Shopping Center September 2011 24,000 800 60 ◎55 AEON MALL Fukutsu April 2012 61,000 3,500 190 ☆56 AEON MALL Tsukuba March 2013 64,000 4,000 200 ☆57 AEON MALL Kasukabe March 2013 56,000 2,900 180 ☆58 Kobe Harborland Umie April 2013 85,000 3,000 230 ◎59 AEON MALL Ｔoin November 2013 58,000 3,500 155 ◎60 AEON MALL Makuhari Shintoshin December 2013 128,000 7,300 360 ◎61 AEON MALL Tendo March 2014 47,000 3,000 130 ◎62 AEON MALL Wakayama March 2014 69,000 3,500 210 ☆63 AEON MALL Nagoya chaya June 2014 75,000 4,100 200 ◎64 AEON MALL Kyoto Katsuragawa October 2014 77,000 3,100 220 ☆65 AEON MALL Kisarazu October 2014 84,000 4,000 160 ◎66 AEON MALL Tamadaira Woods November 2014 24,000 1,000 130 ☆67 AEON MALL Okayama December 2014 92,000 2,500 350 ☆68 AEON MALL Asahikawa March 2015 29,000 900 130 ◎69 AEON MALL Okinawa Rycom April 2015 78,000 4,000 230 ◎70 AEON MALL Shijonawate October 2015 75,000 4,100 200 ◎

☆Securitized


29

List of Malls (3)

※In addition to the above, AEON MALL manages and operates retail facilities (GLA 2,797,000 m2, 8,070 specialty stores) on behalf of AEON Retail Co., Ltd. ※The property management contracts for SHOPPING CENTER SOYOCA FUJIMINO and Nara Family ended on February 20, 2018 and February 28, 2018, respectively. ※AEON MALL acquired AEON Lake Town OUTLET on February 28, 2018.


buildingownership

Land lease/Building

ownership

Land&building

lease

Propertymanagement

71 AEON MALL Tokoname December 2015 86,700 4,000 180 ◎72 AEON MALL Sakai Teppocho March 2016 56,000 2,600 160 ◎73 AEON MALL Imabari Shintoshi April 2016 54,000 2,900 120 ◎74 AEONMALL Nagakute December 2016 59,000 2,600 200 ◎75 QUATE PRX December 2016 13,200 1,750 60 ◎76 AEONMALL Shin Komatsu March 2017 63,000 3,400 170 ☆77 AEON SERITO Senmonkan April 2017 9,100 400 35 ◎78 AEONMALL Tokushima April 2017 50,000 3,100 160 ◎79 AEONMALL Kobe Minami September 2017 39,000 1,400 130 ◎80 AEONMALL Matsumoto September 2017 49,000 2,300 170 ◎

Domestic Total 4,865,000 263,550 13,010 10 24 44 2☆Securitized

81 AEON MALL Beijing International Mall（CHINA） November 2008 53,000 3,000 120 ◎82 AEON MALL Tianjin TEDA （CHINA） October 2010 55,000 2,500 130 ◎83 AEON MALL Tianjin Zhongbei （CHINA） April 2012 62,000 3,700 150 ◎84 AEON MALL Tianjin Meijiang （CHINA） January 2014 63,000 2,400 170 ◎85 AEON MALL Suzhou Wuzhong （CHINA） April 2014 75,000 3,100 190 ◎86 AEON MALL Wuhan Jinyintan （CHINA） December 2014 74,000 2,900 200 ◎87 AEON MALL Suzhou Yuanqu Hudong（CHINA） Maｙ 2015 75,000 3,000 220 ◎88 AEONMALL Beijing Fengtai （CHINA） September 2015 58,000 2,000 180 ◎89 AEON MALL Hangzhou Liangzhu Xincheng （CHINA） November 2015 66,000 2,500 180 ◎90 AEONMALL Wuhan Jingkai （CHINA） December 2015 105,000 4,000 300 ◎91 AEON MALL Guangzhou Panyu Square （CHINA） January 2016 65,000 1,700 170 ◎

92 AEON MALL Suzhou Xinqu （CHINA） January 2014 74,000 3,200 280 ◎

93 AEON MALL HebeiI Yanjiao（CHINA） November 2016 70,000 3,000 200 ◎

94 AEON MALL Tinajin Jinnan（CHINA） October 2017 70,000 2,600 210 ◎

95 AEON MALL Nantong Xinghu（CHINA） December 2017 77,000 3,000 280 ◎

96 AEON MALL Wuhan Jinqiao（CHINA） December 2017 54,700 1,700 190 ◎

97 AEON MALL Foshan Dali（CHINA） December 2017 69,000 2,600 240 ◎

98 AEON MALL Tan Phu Celadon （VIETNAM） January 2014 47,000 500 120 ◎99 AEON MALL Binh Duong Canary (VIETNAM) November 2014 49,000 1,000 150 ◎100 AEON MALL Long Bien (VIETNAM) October 2015 72,000 1,000 180 ◎101 AEON MALL Vinh Tan (VIETNAM) July 2016 60,000 1,500 160 ◎102 AEON MALL Phnompenh （CAMBODIA） June 2014 66,000 2,200 190 ◎103 AEON MALL BSD CITY （INDONESIA） Maｙ 2015 77,000 2,100 280 ◎104 AEON MALL Jakarta Garden City （INDONESIA） September 2017 63,000 3,000 220 ◎

Overseas Total 1,599,700 58,200 4,710 7 0 16 1Grand Total 6,464,700 321,750 17,720 17 24 60 3

As of February 28, 2018

Shopping malls (overseas)


Land&building

lease

PropertymanagementOpening


Parking TenantsLand&

buildingownership

Land lease/Building

ownership

30

Urban Shopping Center Business (OPA Co., Ltd.)

Note: Sannomiya OPA closed on February 28, 2018.

Urban Shopping centers Opening Tenants

1 Akita OPA October 2017 11,500 602 Takasaki OPA October 2017 26,000 1603 Mito OPA March 2017 12,500 614 Seisekisakuragaoka OPA September 1999 16,100 575 Shinyurigaoka OPA November 1997 12,100 986 Fujisawa OPA March 1996 9,000 657 Kawaramachi OPA November 1998 9,800 1018 Umeda OPA April 2013 2,200 19

Shinsaibashi OPA November 1994 10,500 135OPA Kirei-kan August 1998 2,300 included in

Shisaibashi OPA

10 Sannomiya OPA Ⅱ February 2017 11,700 5011 Canal City OPA April 1996 13,300 12412 VIVRE GENE Lake Town September 2008 2,900 2213 Yokohama VIVRE October 1978 17,800 13714 WORLD PORTERS VIVRE September 1999 18,100 9315 Nagoya Wonder City VIVRE April 2009 2,700 1016 Kitaoji VIVRE March 1995 22,200 9217 Sannomiya VIVRE November 1969 5,700 3418 Akashi VIVRE October 1997 16,400 7019 Tenjin VIVRE November 1976 9,800 7420 Sendai FORUS November 1984 14,600 10521 Kanazawa FORUS Novemver 2006 26,100 197

Urban Shopping Center Total 261,800 1,704

As of February 28, 2018


9

（東証１部：8905）

Vision for 2025

31

Vision for 2025

Medium-Term Management Plan (FY2017 to FY2019)

Numerical Targets

Operating revenue ¥340 billion

Operating income ¥60 billion

(1) Rather than domestic malls as the single source of profit generation, we will aim to build a portfolio of multiple businesses. (2) We will aim to make AEON MALL a leading global commercial developer, with consolidated operating income of more than ¥100.0 billion. (3) We will aggressively carry out floor space expansions and renovations of malls in Japan to become the overwhelmingly dominant mall in each area. (4) In overseas business, we will aim for operating income of ¥35.0 billion (operating margin 20%) with 70 malls – the same level of efficiency and scale

as our domestic operations.

Vision for 2025

Priority Measures(1) Capturing Asian Growth Opportunities(2) Development of Latent Sources of Domestic Demand(3) Becoming the Overwhelmingly Dominant Mall in Each Region (4) Capturing Urban Growth Opportunities(5) Optimal Financing Mix / Organizational Structures to Support Growth

Numerical TargetsOperating revenue ¥500 bnOperating income ¥100 bn

32

Operating revenue

¥269.7 bn

¥500.0 bn[Actual]

[Plan]Operating

income

¥44.9 bn

¥100.0 bn

[Actual]

[Plan]

FY2016 FY2025 FY2025FY2016

33

Vision for 2025

100.0

60.044.9

Actual Plan Plan

Actual Plan Plan

Average growth rate over three years＋10.1％

Average growth rate over three years＋8.9％

◆Breakdown of Operating Income

◆Financial Indicators

FY2016 FY2019 FY2025

Efficiency ROIC 4.4% 4.5％ 6% or higher

Safety Net debt-equityratio 1.0 times 1.2 times Around 1.0

Unit：¥, bn

FY2016 FY2019 FY2025

FY2016 FY2019 FY2025Breakdown ofOperating Income

OverseasBusiness -8.5% 8.3% 35.0%

Domestic MallBusiness 105.8% 88.4% 60.0%

Urban ShoppingCenter Business 2.7% 3.3% 5.0%

（東証１部：8905）

Medium-Term Management Plan(FY2017 to FY2019)

34

35

Growth InitiativesGrowth Initiatives

Growth Initiatives

External Environm

entG

rowth

Initiatives

Overseas (China/ASEAN) Japan

(1) Capturing Asian Growth Opportunities

(2) Development of Latent Sources of Domestic Demand

(4) Capturing Urban Growth Opportunities

High growth characteristics of the

retail market

Emergence of the modern SC with GDP

growth

Acceleration of store openings via

competing DV

Concern of slowing Chinese economy

Demographic change (low birthrates, aging

and falling population)

Household change (rise of single and

dual-income households)

Change in consumption behavior (EC penetration, propensity to save, sharing

behavior)

(5) Optimal Financing Mix / Organizational Structures to Support Growth

(3) Becoming the Overwhelmingly Dominant Mall in Each Region

36

Growth Initiatives

(1)Capturing Asian Growth Opportunities

(2)Development of Latent Sources of

Domestic Demand

(3)Becoming the Overwhelmingly Dominant Mall in Each Region

(4)Capturing Urban Growth Opportunities

I. Reaping benefits of rising brand penetration (via area-dominant strategy)II. Development and management of superior mallsIII. Measures to increase operating revenuesIV. Promotion of local management

I. Floor expansion and effective revitalization measuresII. New mall openings in untapped territoryIII. Development of new formatsIV. Improvement of ES for tenants

I. Happiness Mall projectII. Promotion of localization

I. Establishment of branding for new OPA- Development of new format in urban locations- Promotion of renewal of existing stores and strategic S&B/refining- Opening of New Stores in urban areas

(5)Optimal Financing Mix / Organizational

Structures to Support Growth

I. Financing to support growth business modelII. Promotion of diversity management

37

Consolidated Business TargetsConsolidated Business Targets

38

Consolidated Business Targets

FY2016 FY2017 FY2018 FY2019Average growth

rate over three years

Operating revenue ¥269.7 bn ¥288.1 bn ¥320.0 bn ¥340.0 bn ＋8.0 %

Operating income ¥44.9 bn ¥49.2 bn ¥53.5 bn ¥60.0 bn +10.1 %

◆Consolidated Results

(Billion yen)

Change in Operating Income

39

Average growth rate over three

years: +2.1%


years: +2.1%

[Actual] [Actual] [Plan] [Plan]


years: +10.1%

70.0

60.0

50.0

40.0

30.0

20.0

10.0

0FY2010 FY2013 FY2016 FY2017 FY2018 FY2019

Domestic Mall Business Urban Shopping Center BusinessOverseas Business (China/ASEAN)

40

(Billion yen)

FY2016（Actual）

FY2017（Actual）

FY2018（Plan）

FY2019（Plan）

FY2016（Actual）

FY2017（Actual）

FY2018（Plan）

FY2019（Plan）

FY2016（Actual） FY2017

（Actual）FY2018（Plan）

FY2019（Plan）

FY2016（Actual）

FY2019（Plan）

FY2016（Actual）

FY2019（Plan）

FY2016（Actual）

FY2019（Plan）

• Overseas business achieved a ¥2.9 billion year-on-year improvement in profit in FY2017. There is no change to the FY2019 profit target of ¥5.0 billion, an ¥8.8 billion increase from FY2016.

• Improvement in profitability of the urban shopping center business (OPA) was slow, and fell short of the FY2017 target by ¥2.1 billion. The FY2017 profit target is changed to ¥2.0 billion, which is ¥2.0 billion lower than the initial target.

• The domestic mall business performed well due to revitalization efforts such as floor area expansions and with FY2017 specialty stores sales +2.2% YoY, compared with the initial plan of +1%. Revenue of existing malls has improved, so we have revised our FY2019 profit target to ¥53.0 billion, up ¥2.0 billion from the initial target.


◆ Results by Segment

Increase over three years: +8.8

billion yen


billion yen


billion yen


billion yenIncrease over

three years: +3.5 billion yen


billion yen

41

＜変更後計画＞We plan to open a total of 27 new malls during the three years of the medium-term management plan.

The number of mall openings overseas will exceed those in Japan as our overseas shift gains momentum.(10 malls in Japan, 12 malls overseas, 5 urban shopping centers)

Overseas• New openings will decrease by 1 mall in China and 2 malls in Indonesia from the initial plan, but these are only delays, and our

policy of accelerating mall openings is unchanged.

Japan• We have slowed the pace of new mall openings as construction costs remain high. • At existing malls, floor area expansions are planned at eight malls over the three years, in addition to revitalization centered on

tenant replacement upon the expiration of fixed-term leases of tenants at around 10 malls per year.

◆ Number of New Mall Openings and Malls to Be Revitalized


[Actual] [Plan] [Plan]

*1(New mall)＋*2(Increase in f loor area) 7 6 5 18

JapanOverseas (China & ASEAN)

<Number of New Mall Openings> FY2017 FY2018 FY2019 Total

Mall *1 5 4 1 10

Urban Shopping Center 2 2 1 5

<Number of malls to be Revitalized> FY2017 FY2018 FY2019 Total

Increase in f loor area *2 2 2 4 8

Renew al 12 8 10 30

<Number of New Mall Openings> FY2017 FY2018 FY2019 Total

Overseas 5 3 4 12

China 4 2 2 8

ASEAN 1 1 2 4

[Actual] [Plan] [Plan] [Actual] [Plan] [Plan]

Revised plan FY2017 FY2018 FY2019 Total of three years

Difference vs. initial plan

Difference vs. initial plan

Capital Investment ¥190.0 ＋40.0 ¥190.0 120.0 500.0 ＋50.0

Japan 155.0 ＋55.0 140.0 75.0 370.0 ＋70.0

Store openings of new malls 80.0 ＋30.0 90.0 30.0 200.0 ＋30.0

Revitalization of existing malls 70.0 ＋40.0 30.0 40.0 140.0 ＋40.0

Urban SC (OPA) 5.0 -15.0 20.0 5.0 30.0 ±0

Overseas 35.0 -15.0 50.0 45.0 130.0 -20.0

China 15.0 -5.0 10.0 5.0 30.0 -30.0

ASEAN 20.0 -10.0 40.0 40.0 100.0 ＋10.0

• Capital investments in FY2017 included ¥50.0 billion in unplanned investments related to the purchase of existing assets of AEON MALL Hiroshima Fuchu and other properties in Japan.

• Because of the factor above, total investments for the three-year period have been adjusted upward by ¥50.0 billion from the initial plan to ¥500 billion.

42

◆ Capital Investment


(Billion yen)[Actual] [Plan] [Plan]

43

＜Revised plan＞＜Initial plan＞ FY2018 (Plan)

FY2017 (Actual) FY2019 (Plan)

3-year Plan

FY2017 (Plan)

3-year Plan

(Billion yen)

Japan

Overseas

Japan

Overseas

Operating cash flow

Funds on hand Use of

debts, REIT, etc.

• Funding for the ¥500 billion in capital investments over the three years will be provided by the following sources:Operating cash flow: ¥270 billion Funds on hand: ¥30 billion Use of debt and REIT: ¥200 billion

• Overseas business is entering the stage of generating cash flow, and significant improvement in free cash flow can be expected in the next medium-term management plan and beyond.

• We will use leverage during this medium-term management plan, and will keep the net debt-equity ratio at around 1.0 times to maintain financial soundness over the medium to long term.

◆ Financing Plans and Investment Breakdown

Operating cash flow


debts, REIT, etc.

Operating cash flow


debts, REIT, etc.

Japan

Overseas

Japan

Overseas

Japan

Overseas

Japan

OverseasOperating cash flow

Funds on hand

Use of debts, REIT,

etc.

Operating cash flow

Funds on hand

Use of debts, REIT,

etc.

Operating cash flow

Funds on hand

Use of debts, REIT,

etc.


Overseas BusinessOverseas Business

44

Area-dominant strategy being implemented in 4 Chinese regions and 3 countries in ASEAN


I. Reaping Benefits of Rising Brand Penetration (via Area-Dominant Strategy)

45* Malls written in blue are scheduled to be opened

Strategic area Improvement of leasing conditions Benefits of Suzhou Area Dominant Strategy

Vietnam<Hanoi>- AEON MALL Long Bien- AEON MALL Ha Dong <Ho Chi Minh>- AEON MALL Tan Phu Celadon- AEON MALL Binh Duong Canary- AEON MALL Binh Tan

Cambodia- AEON MALLl Phnom Penh- AEON MALL Sen Sok City

Indonesia- AEON MALL BSD CITY- AEON MALL Jakarta Garden City- (Tentative name) AEON MALL Sentul City- (Tentative name) AEON MALL Deltamas

Hanoi

Ho Chi Minh

Phnom Penh

Jakarta

*

Beijing / Tianjin / Shandong Area

Jiangsu / Zhejiang Area

Hubei Area

Guangdong Area

- AEON MALL Beijing International Mall- AEON MALL Beijing Fengtai- AEON MALL Tianjin TEDA- AEON MALL Tianjin Zhongbei- AEON MALL Tianjin Meijiang- AEON MALL Hebei Yanjiao- AEON MALL Tianjin Jinnan- AEON MALL Yantai Jinshatan

- AEON MALL Suzhou Wuzhong- AEON MALL Suzhou Yuanqu Hudong- AEON MALL Hangzhou Liangzhu Xingcheng- AEON MALL Suzhou Xinqu- AEON MALL Nantong Xinghu- AEON MALL Changshu Xinqu

- AEON MALL Wuhan Jinyintan- AEON MALL Jingkai- AEON MALL Wuhan Jinqiao

- AEON MALL Guangzhou Panyu Square- AEON MALL Foshan Dali- AEON MALL Guangzhou Jinsha

As of February 28, 2018* Malls written in blue are scheduled to be opened

46

◆Hubei Province

2008 2012 2016

Disposable income 100 158 223

Per capita GDP 100 194 277

Aggregate retail consumption 100 193 315




【Locations for Store Launches】Areas where economic growth can be expected and where a mall business can beexpected to be viable.→ ① Expanding middle-income class ② Advancing motorization

③ Advancing regional development ④ Lack of competing retail facilities

Growth in Disposable Income / Per Capita GDP / Aggregate Retail Consumption※2008 indexed at 100.

Monthly rent per tsubo for specialty stores at Suzhou Xinqu (third store) is about 1.6 times that of Suzhou Wuzhong (first store).

158143

100

47




u Comparison of Leasing Conditions: 3 Malls in the Suzhou Area (Comparison at 5 months after Opening)

Monthly Rent per Tsubo

AEON MALL Suzhou Wuzhong

(1st store)

AEON MALL Suzhou Yuanqu Hudong

(2nd store)

AEON MALL Suzhou Xinqu

(3rd store)

< OPEN > < Apr 2014 > < May 2015 > < Jan 2016 >


AEON MALL Suzhou Yuanqu

HudongAEON MALL

Suzhou Xinqu

*Suzhou Wuzhong indexed at 100

① The 3rd mall in the area, branding penetration has benefited leasing terms and top-line revenues have exceeded forecasts. Year 1 profitability achieved.

② For accounting purposes, real estate costs (proprietor lease fees) are averaged over the term of the non-cancellable term of the contract (8-years). Thus, operating expenses are held flat.

③ Looking forward, assuming top-line growth remains in-line with forecasts, profit generation expected to match Japan domestic malls (over 1bn JPY at gross operating profit base) in 6-7 years.

①

②

③

48




AEON MALL Suzhou Xinqu(Jan. 2016 opening）

（Unit: RMB, Ths）

Operating RevenuesOperating ExpensesOperating Gross Margins

Average and Staggered Lease Costs

Accounting Leasing Cost: Use of Contract-term Average

＜Comparison＞

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Average Lease CostsInitially, lease expenses not incurred are recognized for accounting purposes. From year 4, accounting lease costs become lower than actual cash costs.

Cash Leasing Cost: Staggered Structure for Actual Payment

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

II. Development and Management of Superior Malls

49

(1) Large-scale parking spaces in line with motorization (2) Ability to organize a store floor that is suitable for the destination

(3) Meet the demand for experimental consumption by strengthening entertainment (4) Holding events that will attract customers (5) Pursuit of comfortable, secure and safe facilities

AEON MALL Wuhan Jinqiao

AEON MALL Jakarta Garden City




III. Measures to Increase Operating Revenues

Rate of buying, number of items purchased and sales per customer to be increased

Conducting promotion/eventsby area, not by individual stores

Buying inclination to be increased

50

Proceeding to the stage of rent Increases through active negotiations

on rents and replacements

Increase in the number of malls in an area

Increase in the ability of each mall to attract customers

Ability to attract customers and branding ability

Increase in ancillary revenue

Use of the areas of a mallas media (for advertising)

◆Increase in area marketing capability

◆Increase in floor value

◆Increase in incidental income

VietnamA Black Friday sale was vigorously conducted.

Jiangsu and Zhejiang areaA joint event was held with Alipay

＜Conduct of sales by area＞

Cambodia: ornaments with sponsors

China:fee-charging event using the events space

＜Meeting for invitation of tenants＞

＜Use of the areas of a mall＞


AEON MALL Yantai Jinshatan(FY2018 to be opened)

Participation of 265 tenant companies; 409 persons in total(156 merchandising business companies, 109 restaurants and other companies)

New Mall Openings: Medium-Term Management Plan

End of FY20163-year Plan Total for

3-years End of FY2019FY2017(Actual) FY2018(Plan) FY2019(Plan)

Overseas 19 5 3 4 12 31

China 13 4 2 2 8 21

ASEAN 6 1 1 2 4 10

Over the next three years, a total of 12 new malls are planned –eight in China and four in ASEAN

51(Plan) (Plan)


Number of stores opened in China

Number of stores opened in ASEAN

Number of malls opened overseas (in Total)

Overseas Business: Operating Income

52

0

FY2015- ¥5.4 bn

FY2016- ¥3.7 bn

FY2017- ¥0.8 bn

FY2018¥1.0 bn

Profit improvement

+¥1.6 bn

Profit improvement

+¥4.0 bnProfit improvement

+¥2.9 bn

Profit improvement

+¥1.8 bn

FY2019¥5.0 bn

Turned profitable in FY2017 Q4 (3 months) → Entering the profit expansion stage

[Actual]

[Plan]

[Plan]

[Actual] [Actual]

【Overseas Business Operating Income Trend】


Beijing and Tianjin Areas

AEON MALL Yantai Jinshatan

53


* The stores shown in red are scheduled to be opened.

<Store openings in the Beijing, Tianjin area and Shandong Province>

Scheduled opening date Site area Total leasing area Parking Number of specialty stores

AEON MALL Yantai Jinshatan FY2018 About 111,000 ㎡ About 79,000 ㎡ About 2,800 cars Undisclosed

Hubei Area Guangdong Area

AEON MALL Guangzhou Jinsha

54

Jiangsu and Zhejiang Areas

AEON MALL Changshu Xinqu



AEON MALL Suzhou Yuanqu HudongAEON MALL

Suzhou Xinqu




AEON MALL Changshu Xinqu FY2019 About 149,000 ㎡ About 63,000 ㎡ About 3,700 cars Undisclosed


AEON MALL Guangzhou Jinsha FY2018 About 85,000 ㎡ About 65,000 ㎡ About 3,600 cars Undisclosed

Vietnam

55

AEON MALL Ha dong


Hanoi

Ho Chi Minh


<Ho Chi Minh Area>

<Hanoi Area>

Inclusive of the FY2019 Planned Opening of AEON MALL Hadong, Aggressive Advancement of Development of Large-scale Shopping Malls in Hanoi Planned

Agreement Reached between the Hanoi People’s Committee and Aeon Co., Ltd.“Comprehensive Memorandum of Understanding on Investment and Business Advancement in Hanoi”

Outline of Comprehensive Memorandum・From 2017 thru 2020, Aeon agrees to advance, via Aeon Group Companies, investments/ business activity

toward the modernization of Hanoi. Hanoi, agrees to cooperate to allow for the smooth execution ofinvestments/ business activity. ・For expanded sales of Vietnamese products, Aeon agrees to cooperate in helping advance Vietnamese

exports using its domestic/ overseas networks. Aeon further agrees to cooperate with Hanoi’s PR activities.・Scope of Aeon Group’s Investments/ Business Activity:

① Retail Business（GMS, SM, CVS） ② Development, Construction, Management of Malls③ Finance / Services Businesses ④ Import/Export of Product and Product Development


AEON MALL Ha dong FY2019 About 98,000 ㎡ About 74,000 ㎡About 2,100 cars

About 9,000 motorbikesAbout 200 stores

Indonesia

56

Cambodia

AEON MALL Sen Sok City


AEON MALL Phnom Penh

AEON MALL Sen Sok City

(Scheduled to be opened)

Located about 10 kilometers north of the center of Phnom Penh. Housing development is underway in the area surrounding the planned site. Good access not only from neighboring areas, but also from the center of Phnom Penh.

（Tentative Name）AEON MALL Sentul City（Expected Opening in FY2019）Launch via Master Lease Arrangement with Local Developer

Owner: Sentul City Company (PT SENTUL CITY TBK）In a development area in Western Java, Bogor (about a 1-hour drive from central Jakarta), Sentul City is developing a roughly 3,000ha project incorporating residences, offices, schools, hospitals, a golf course, a sports facility, and a convention center.

AEON MALL BSD CITY


AEON MALL Sentul City(tentative name)


AEON MALL Delta Mas(tentative name)





AEON MALL Sentul City FY2019 About 78,000 ㎡ About 71,000 ㎡ About 3,000 cars About 250 stores

AEON MALL Delta Mas FY2022 About 200,000 ㎡ Undisclosed Undisclosed Undisclosed


AEON MALL Sen Sok city June 2018 About 100,000 ㎡ About 80,000 ㎡About 2,500 cars

About 2,000 motorbikesAbout 200 stores

Domestic BusinessDomestic Business

57

Japan(As of Dec 2017)

U.S.(As of Dec 2016)

U.S.／Japan

Large-scale Mall Count※ 190 1,222 6.4x

Population（millions） 126.9 323.3 2.5x

Population per Mall（thousands） 668 264 0.4x

Total SC Sales（¥, Billions） 31,986 291,745 9.1x

Total Retail Sales（¥, Billions） 142,514 532,204 3.7x

Share of SC Sales Relative to Total Retail Sales 22.4％ 54.8％ 2.4x

SC Industry Comparison with the U.S.

58

SC Comparison: Japan vs U.S.

※Japan data based on 40,000㎡+. US data based on RSC, SC component of SRSC.※U.S. Total SC Sales, Total Retail Sales based on US$＝¥109.84 (avg. rate for CY2016). ※Source: Japan Council of Shopping Centers, AEON MALL calculations based on METI “Statistical Research of Commerce Trends.”

・Large-scale malls in the U.S. are 6.4x that of Japan. Population per mall is0.4x that of Japan suggesting excess supply overhang in the U.S.・Large-scale malls per capita remains low in Japan suggesting the SC market is substantially different from the U.S.

Domestic Business

59

Domestic Business

Progression of Battle for Domestic Commercial Facilities

Capitalize on and benefit from accelerating consolidation of the commercial property sector

Development of Latent Sources of Domestic Demand

(Expansion of target age, Cultivation of existing business areas)

Becoming the Overwhelmingly Dominant Mall in Each Region

Capturing Urban Growth Opportunities

Change in Demographics Change in Family Structure Change inConsumption Behavior

Change in Information Environment

Selection and eliminationof physical stores

Stagnant business in the apparel industry Expansion of e-commerce Decrease of labor force

59

Successive Closure Rival Large-scale SCsdue to Industry Consolidation

Opportunity to Secure ¥810 billion in Sales and 40,000 in Staff

Assessing the Domestic Market

60

- HEALTH - - WELLNESS -Health in body

and mindCasual enjoyment of

art and culture

- COMMUNITY -Activities that promote

social interaction among people

in the community

- OPPORTUNITY -

Creating opportunities to encounter new values

and lifestyles

A place for customers to create happy memories

I. Happiness Mall Project


61

HEALTH

Health in body and mind

Yoga Class AEON MALL Okinawa RycomMall Walking

WELLNESS

Casual enjoyment of art and culture

Opera de AEON MALL: Enjoying OperaHeld in the cinema complex at AEON MALL Nagakute

and AEON MALL Tokoname



62

COMMUNITY

Activities that promote social interaction among people in the

community

OPPORTUNITY

Creating opportunities to

encounter new values and lifestyles

Nationwide AEON Association Shops Role-Playing Contest

Tsugaru City Library CHITA CAT Project

AEON MALL Tsugaru Kashiwa AEON MALL Tokoname



63

II. Promotion of Localization

Facilities that are essential to the community, and that are counted on

Administrative Branch Office Clinic Postal Office Library

◆The Ultimate in Localization 2017Malls collaborated in six categories –

Industry EducationGovernment Private OrganizationsCulture & History Products– to highlight the appeal of the region where the mall is located. In FY2017, out of 244 plans proposed, 12 were selected and implemented.

◆Expansion of Public Functions


(i) Sales activities (ii) Creation of employment (iii) Public Functions (iv) Regional

development(v) Coexistence with

the environment

Social Functions Undertaken by Malls

Mall Title of Plan Plan Description

QUALITE PRIX New! Sapporo Au Lait! Conducted events and promotions focusing on Hokkaido milk incooperation with local businesses

AEON MALLKasukabe

August 10 (Hatto ) Day A promotion to learn about and enjoy Kasukabe's straw hats that areknown throughout Japan

AEON MALLLake Town Mori

GO！GO！Bicycle Kingdom Saitama

Saitama has a deeply rooted bicycle culture.This PR event highlighted the appeal of Koshigaya through bicycles.

AEON MALLHinode

Discover! West Tama TreasureChest

A collaborative event with eight cities in Western Tama, the nearbytrade area, with the mall serving as a bridge to convey theirattractions

AEON MALLTamadaira Woods Hino Film Commission

Held screenings of movies shot in Hino City, using AEON MALL toshowcase Hino as a filming location, with the aim of revitalizing theregion

AEON MALLOkazaki

Making Jazz More Familiar〜Popular Songs from Jazz〜

A plan that used AEON MALL Okazaki as a base for promotingOkazaki's jazz culture

Mall Title of Plan Plan Description

AEON MALLKakamigahara

AEON MALL of Book Town An event held to encourage enjoyment of the town of Kakamigaharawith communication through books

AEON MALLYamatokoriyama

Energize Yamatokoriyama withGoldfish Scooping!

Promoted Yamatokoriyama as "the Goldfish City" by extending thefun of goldfish scooping to children in the region.

AEON MALLWakayama

Wakayama Sakejo Festival Spotlighted women who are playing active roles in Wakayama, withsake as the focal point

AEON MALLKurashiki

Fun with Masking Tape〜Adding color to AEON MALL Kurashiki

〜

An art event that used masking tape on the temporary enclosuresnecessitated by renewal construction

AEON MALLNiihama

Koto Monozukuri Festival A PR event for manufacturing in Niihama held with localmanufacturers and trade schools

AEON MALLOkinawa Rycom

Ultimate Toshibi“Toshibi,” a traditional birthday celebration in Okinawa, was heldthroughout the mall in cooperation with specialty stores and theKitanakagusuku Tourism Association

I. Floor Expansion and Effective Revitalization Measures


Overwhelmingly dominant malls in the region:

40% or more

Including malls that are No. 1 in the region:

70% or more

Planned Mall Segmentation in FY2025

＋

“A” MallThe mall that is most supported by customers＝The mall that is No. 1 in the region in attracting customers

Note: Excludes 70 large-scale commercial facilities that AEON MALL manages and operates on behalf of AEON Retail Co., Ltd. 圧倒的地域№1モール

地域№1モールストロングセカンド機能⾒直し

Overwhelmingly dominant malls in the region

Malls that are No. 1 in the region

Strong second

Functional overhaul

64

FY2017 FY2018 FY2019 3-year Total

Expansion of floor area 2 malls 2 malls 4 malls 8 malls

Renewal 12 malls 8 malls 10 malls 30 malls

Revitalization Creation of needsto generate the “+α”

Creation of categories that attract new customer groups

Creation of categories that create new needs

＝

The average age of AEON MALL buildings is 10.9 years. Their value will be increased through revitalization.- We are implementing the large-scale revitalization (renewal) of existing shopping malls and increasing their appeal and freshness to improve their earning power. -

65



u3-Year Revitalization Plan

uApproach to revitalization

* Excludes large commercial facilities of AEON Retail Co., Ltd.

[Actual] [Plan] [Plan]

7

5

4

5

4

1

0

1

2 2 2

4

0

1

2

3

4

5

6

7

8

2014年度 2015年度 2016年度 2017年度 2018年度 2019年度

New malls Malls with expanded floor area

66

With construction costs remaining high, we will carefully select new mall openings in untapped territory, and will invest resources in floor area expansion and

renovation, which have higher investment efficiency.

【圧倒的な地域№1モールへの進化】



FY2014 FY2015 FY2017 FY2018(Plan)

FY2019(Plan)

FY2016

67

After expansion of floor area

After expansion of floor area

YoY change in sales at specialty stores after expansion of floor area: 137.5%

(Period from Nov. 18, 2016 to November 17, 2017)

After expansion of floor areaAfter expansion of floor area



AEON MALL Hiroshima Fuchu(Grand opening after expansion of floor area on Nov. 18, 2016)

AEON MALL Kofu Showa(Grand opening after expansion of floor area on Nov. 23, 2017)

YoY change in sales at specialty stores after expansion of floor area: 170.2%(Period from Nov. 23, 2017 to February 28, 2018)

Expanding floor area


68

Construction of South Mall with Expanded Building

Construction of hinata TERRACEAn open-air courtyard situated between the existing building and the expansion buildingfeatures children’s play structures in the lawn area facing the food court and cafe.

A new two-story building with expanded floor area was constructed on the south side of the property, which had been used as a parking lot.

The existing North Mall also underwent a major renovation



AEON MALL MiyazakiExpansion - Renewal Open: March 16, 2018

Expandingfloor area

Opening: May 2005Site area: 200,000m2 Total leasing area: 84,000m2 (+14,000m2)Parking: 4,300 cars (+300 cars) Specialty stores: 240 stores (+70 stores)

＜2F：Four zones composed by Kids entertainment & Hobby, etc.

<1F：Global fashion & High quality food court >



AEON MALL Sakai KitahanadaRenewal Open: 20 Mar. 2018 West Mall Zone

Large specialty stores focusing on daily needs opened on a former department store siteOpening: Oct. 2004Site area: 58,000m2

Total leasing area: 72,000m2

Parking: 2,800 carsSpecialty stores: 170 stores

1F

2F 3F

The world’s largest MUJI store – featuring a dedicated food section

Newly opened outlets of UNIQLO and GU, two major casual fashion stores, are among their largest in Osaka

Electronics and sporting goods stores, cafes and drugstores, etc. offer Health and Wellness

69

70

Summary of Expansion PlanSite area: 64,000m2 (Total of main building and expansion building: 192,000m2)Specialty stores: 70 stores

Site of planned floor area expansion



Expanding the floor area of malls that are already No. 1 in their region. Further Enhancing Dominant No. 1 Position

AEON MALL Kumamoto Building with additional floor space opens in summer of 2018

AEON MALL HigashiuraBuilding with additional floor space opens in spring of 2019

AEON MALL Takaoka Building with additional floor space opens in autumn of 2019

Opening: Oct. 2005Site area: 207,000m2

Total leasing area: 84,000 m2 (+11,000m2)Parking: 5,000 cars (+500 cars) Specialty stores: 200 stores (+40 stores)

Opening: July 2001Site area: 110,000m2 Total leasing area: 75,000m2 (+12,000m2)Parking: 4,600 cars Specialty stores: 170 stores (+50 stores)



II. New Mall Openings in Untapped Territory

AEON MALL Iwaki Onahama

End of FY2016

3-year PlanTotal for 3

years FY2019FY2017(Actual)

FY2018(Plan)

FY2019(Plan)

Malls 147 5 4 1 10 155

71

• The property management contract for SHOPPING CENTER SOYOCA FUJIMINO ended on Feb. 20, 2018. • The property management contract for Nara Family ended on Feb. 28, 2018.


u3-Year Plan for New Mall Openings

uFY2018 Plan for New Mall Openings in Japan * Only new malls already announced are included above.

THE OUTLETS HIROSHIMA

Name of facility Location Scheduled opening date

AEON MALL Zama Zama, Kanagawa Pref. March 16, 2018 58,000 ㎡ 50,000 ㎡ 2,500 cars

THE OUTLETS HIROSHIMA Hiroshima, Hiroshima Pref. Spring of 2018 About 268,000 ㎡ About 53,000 ㎡ About 4,000 cars

AEON MALL Iwaki Onahama Iwaki, Fukushima Pref. Summer of 2018 About 44,400 ㎡ About 50,200 ㎡ Undisclosed

AEON MALL Tsu-Minami Tsu, Mie Pref. Autumn of 2018 About 108,000 ㎡ About 60,000 ㎡ Undisclosed

Site area Total leasing area Parking

72

AEON MALL Zama (Kanagawa Pref., Zama City)

One of the largest food areas in the city ZAMAIRO PROJECT

Parent/child workshops, activities where people can find a new hobby, and seasonal events jointly developed with the community are held. Project details are broadcast on the original program ZAMAIRO CHANNEL.

1F Food Hall 2F Restaurants 3F Food Court


Opening: March 16, 2018Land Area: 58,000㎡ Lease Area: 50,000㎡Parking Space: 2,500 Specialty stores: 160

II. New Mall Openings in Untapped Territory

73

② Entertainment ③ Harmony with Local Community

Retail Space for Community Origination

①A Full-fledged Outlet Mall

III. Development of New Formats


THE OUTLETS HIROSHIMA Opening Scheduled for April 27, 2018

Solutions to issues that go beyond

DV/tenant boundaries

Decrease in working age population due to falling birth rates and population aging (labor shortage)

Increase in tenants’ employee turnover rates and hiring frequency

IV. Improvement of ES for Tenants

74


Promote the creation of facilities that meet the needs of an increasingly diverse society and make working and continuing to work at them easy

Create malls that tenants will choose

(1) Employee lounges where employees can recharge themselves and enjoy some alone-time. (2) Employee benefits in which time and economic value can actually be experienced. (3) Child-care support that enables employees with children to work with peace of mind(4) WAON points awarded to employees according to their attendance(5) Mental and physical support that results in happy employees

I. Establishment of Branding for New OPA

Strengthening of profitability of urban shopping centers

Development of new format in urban locations

Promotion of renewal of existing stores and strategic S&B/refining

Opening of new stores in urban areas

(tentative) Naha OPA

75

End of FY2016

3-year Plan Total for 3-years

End of FY2019FY2017 FY2018 FY2019

Urban shopping center 20 2 2 1 5 24

(4) Capturing Urban Growth Opportunities

uPlan for openings of new urban shopping centers in Japan (FY2018)

u3-Year Plan for openings of new urban shopping centers

Name of facility Location Schedulled opening date

(tentaive) Naha OPA（Master Lease） Naha, Okinawa Pref. Autumn of 2018 About 12,800㎡ About 5,200 ㎡

(tentaive) Hachioji OPA（Master Lease） Hachioji, Tokyo Autumn of 2018 About 4,000㎡ About 6,200 ㎡

Site area Total leasing area

Note: Sannomiya OPA closed on February 28, 2018.

I. Financing to Support Growth Business Model

76

5) Optimal Financing Mix / Organizational Structures to Support Growth

■Aeon Group in-house nursery schools that have been established (as of February 28, 2018)In our company’s malls①AEON MALL Makuhari Shintoshin (approved by Chiba City) ②AEON MALL Okinawa Rycom (approved by Kitanakagusuku）③AEON MALL Tokoname (approved by Tokoname City) ④AEON Lake Town Mori (approved by Koshigaya City) ⑤AEON MALL Natori (company-led childcare business )⑥AEON MALL Nagoya Chaya (company-led childcare business ) ⑦AEON MALL Nagakute (company-led childcare business) ⑧AEON MALL Mito Uchihara (company-led childcare business) ⑨AEON MALL Shin Komatsu (company-led childcare business ) ⑩AEON MALL Tokushima (company-led childcare business ) ⑪AEON MALL Matsumoto (company-led childcare business) ⑫AEON MALL Kobe Minami (company-led childcare business)

AEON Yume-Mirai Nursery Schools established in commercial facilities of Aeon Group companies①AEON Style Shonan Chigasaki (approved by Chigasaki City) ②AEON TOWN Aira (company-led childcare business)③AEON MALL Saga Yamato (approved by Saga City) ④AEON Fukuoka Higashi (company led childcare business) ⑤AEON Otogana (company-led childcare business) ⑥AEON Haebaru (company-led childcare business)

Expanding Day-Care Facilities as “Company-Led Childcare Businesses”

Selected as a “Nadeshiko Brand” for FY2017 for the Second Straight Year

The “Nadeshiko Brand” program highlights companies listed in the First Section of the Tokyo Stock Exchange from each industry that actively promote the participation of female employees, including creating a supportive working environment. Selected companies can also be considered as “companies with growth potential” in the sense that they have the ability to make use of diverse human resources and the ability to adapt to a changing environment.

II. Promotion of Diversity Management

77

5) Optimal Financing Mix / Organizational Structures to Support Growth

The AEON Yume-Mirai Nursery School at AEON MALL and Aeon Group shopping complexes is an on-site childcare service for preschool-aged children of employees of the Aeon Group and tenant specialty stores. With the aim of supporting the lifestyle of both managing a career and raising children, these facilities operate at 12 locations nationwide, including facilities established in partnership with other childcare service providers. Eight of them are certified as “company-led childcare services” by the Cabinet Office (as of February 2018). Company-led childcare businessImplemented for the purpose of contributing to reducing the number of children on the waiting list for a childcare center and supporting the lifestyle of both managing a career and raising children by increasing childcare services that allow diverse working styles based on company-led, in-house childcare business.

About the “Nadeshiko Brand” programThe aim of the Nadeshiko Brand is to introduce certain listed companies that are outstanding in terms of encouraging the empowerment of women in the workplace as attractive securities investment opportunities to investors who put emphasis on improving corporate value in the mid- and long-term, in an aim to promote investment in such enterprises and accelerate efforts encouraging women’s success in the workplace Since FY2012, METI and the TSE have been scoring enterprises according to their progress in the encouragement of women’s success while screening them based on financial indicators.

* Two other centers are operated based on alliances with general childcare business operators.

Business Targets and Guidance (Consolidated)Business Targets and Guidance (Consolidated)

78

Amount YoY

Operating Revenue ¥320.0 bn ＋11.1％

Operating Income ¥53.5 bn ＋8.7 ％

Ordinary Income ¥51.0 bn ＋4.0 ％

Net Income Attributable to Owners of Parent ¥32.0 bn ＋4.8 ％

Capital Expenditure ¥190.0 bn

Depreciation ¥50.0 bn

FY2018 Guidance

※

79

* FY2017 depreciation under the same conditions, including amortization of long-term prepaid expenses, was ¥43.4 billion.


Fiscal YearDividend per share

Payout ratioMid-term Year-end Full year

2016 (Actual) ¥13.50 ¥13.50 ¥27.00 21.5 %

2017 (Actual) ¥16.00 ¥19.00 ¥35.00 26.1 %

2018 (Plan) ¥19.00 ¥19.00 ¥38.00 27.0 %

5 yen increase8 yen increase

(yen)

80

• We are expanding the consolidated payout ratio target from 20% to 25% or more because the overseas business has entered the stage where it can generate cash flow.

• For FY2018, we plan to increase the full-year dividend per share by ¥3 to ¥38, a payout ratio of 27%, to enhance shareholder returns.

3 yen increase

FY2014 FY2015 FY2016 FY2017 FY2018(Plan)

Profit Sharing

Dividend per share

Dividend pay-out ratio


financial results for fy2017 - ir webcasting · 2018-04-17 · i. reaping benefits of rising brand...

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