AEON Mall : Presentation Material FY2024 1st Quarter

Financial Results for Q1, FY2024 March 1, 2024 - May 31, 2024

July 11, 2024

Contents	1

Financial Results for Q1, FY2024 March 1, 2024 - May 31, 2024

Financial Results for Q1, FY2024

Overview of Consolidated Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 3

Performance by Segment (Japan)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 4

Performance by Segment (Overseas)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 5

Change in Profit (Loss) by Segment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 6

Japan Sales Growth Factors (Renovations and Inbound)・・・・・・・・・・・・・・・・・・・・・ P 7

Sales Promotions to Recover Customer Traffic at Existing Malls・・・・・・・・・・・・・・・・・・ P 8

Overseas: Specialty Store Sales at Existing Malls, Year-on-Year (by Business Model)・・・・・・・・・・ P 9

Japan: 92 Specialty Store Sales at Existing Malls, Year-on-Year (by Business)・・・・・・・・・・・・・ P 10

Income Statement Summary・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 11

Balance Sheet Summary・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 12

Cash Flow Statement Summary・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 13

Topics for Q2 and Beyond

Management Focus・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 15

Plans to Open Four New Malls During FY2024・・・・・・・・・・・・・・・・・・・・・・・・・ P 16

China Accelerate Mall Openings in Priority Areas・・・・・・・・・・・・・・・・・・・・・・・ P 17

Renovating Existing Malls in Japan・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 18

Strengthen Inbound・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 19

Efforts to Attract More Customers to Malls in Japan・・・・・・・・・・・・・・・・・・・・・・・ P 20

Circular Malls・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 21

Initiatives to Strengthen Our Organizational Structure (Human Capital)・・・・・・・・・・・・・・・・ P 22

Inclusion in ESG Indexes・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 23

Three-YearMedium-Term Management Plan (FY2023-FY2025) Numerical Plans

Long-TermVision ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 25

Medium- and Long-Term Numerical Targets・・・・・・・・・・・・・・・・・・・・・・・・・・ P 26

Consolidated Plan for FY2024 (Fiscal Year Ending February 28, 2025)・・・・・・・・・・・・・・・・ P 27

Three-Year New Mall Opening Plan・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 28

Three-Year Capital Investment and Funds Acquisition Plan・・・・・・・・・・・・・・・・・・・・ P 29

Target Performance Indicators・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 30

Shareholder Returns ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 31

Three-YearMedium-Term Management Plan (FY2023 - FY2025) Growth Policy

Three-YearMedium-Term Management Plan Growth Policy・・・・・・・・・・・・・・・・・・・ P 33

Pursue a Regional Shift in Japan and Overseas・・・・・・・・・・・・・・・・・・・・・・・・・ P 34

Create a Platform for Health and Wellness・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 35

Discover and Commercialize Business Opportunities in Overseas Growth Markets・・・・・・・・・・・ P 36

Indonesia Opened Suburban Malls・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 37

Vietnam Securing New Properties・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 38

Pursue Business Model Innovation in Japan・・・・・・・・・・・・・・・・・・・・・・・・・・ P 39

Improve Profitability Through the Effective Use of Existing Assets・・・・・・・・・・・・・・・・・ P 40

Securing Revenue Opportunities Through the Effective Use of Existing Assets・・・・・・・・・・・ P 41

Progress in Fundamental Business Structure Reforms・・・・・・・・・・・・・・・・・・・・・ P 42

Create New Business Models That Break From Existing Business Frameworks・・・・・・・・・・・・ P 43

Expand Office Complex Development Functions・・・・・・・・・・・・・・・・・・・・・・・ P 44

Corporate Venture Capital: Life Design Fund・・・・・・・・・・・・・・・・・・・・・・・・・ P 45

Develop Joint Delivery Services to Solve Logistics Issues・・・・・・・・・・・・・・・・・・・・ P 46

Build Strong Financial Foundations and Resilient Organizations From the Perspective of Sustainability・・・ P 47 The Three Initiatives Each AEON MALL Offers for the Environment・・・・・・・・・・・・・・・・ P 48

Protecting Biodiversity・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 49

Achieve Decarbonized Societies・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 50

Attachments (Mall Data)

Property Listing: ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 52-57

2

Financial Results for Q1, FY2024

Financial Results for Q1, FY2024	3

Overview of Consolidated Results

■Consolidated Statements of Income

・Record-high operating revenue and operating income

・The Japan Business contributed to sales growth and cost reductions, resulting in a double-digitincrease in operating income. ・The company made progress at each profit level in line with the internal Q1 plan.

(Unit: ¥, Millions)

	FY2024	FY2023	YoY Change
	Q1 Results	Q1 Results	Change		％
Operating revenue	109,432		105,529		+3,902		103.7
Operating costs	85,526		83,592		+1,934		102.3
Gross profit	23,906		21,937		+1,968		109.0
Selling, general and		8,434			8,054		+379		104.7
administrative expenses
Operating income	15,472		13,883		+1,588		111.4
Ordinary income	12,367		11,471		+896		107.8
Net income attribute		6,871			6,372		+499		107.8
to owners of parent
Net income per share (yen)		30.19			28.00		+2.19		－

1H Plan

	Progress Rate
	(%)
221,000	49.5
－	－
－	－
－	－
26,000	59.5
19,700	62.8
5,400	127.3
23.72	－

Financial Results for Q1, FY2024	4

Performance by Segment (Japan)

Domestic Mall Business

・Q1 specialty store sales at existing malls rose +3.1% year on year with an increasing lease income percentages.

Reduced electricity costs and other cost improvement effects

Operating income up 14.2% year on year, +1,462 million yen

・Existing mall specialty store sales improved in June at +12.8% year on year.

		Operating Income		Existing Mall Specialty Store Sales, Customers (92 Malls)
		(Unit: ¥, millions)						*June figures are preliminary.
							Q1
12,000	+14.2%				Specialty Store Sales : 103.1%
			Customers	: 101.5%
10,000
8,000

Q1 FY21

Q1 FY22

Q1 FY23

Q1 FY24

Specialty Store Sales

Customers

March

April

May

June

Financial Results for Q1, FY2024	5

Performance by Segment (Overseas)

Operating Income

4,000	Record (Unit: ¥, millions)
Profits
3,500

3,000

2,500

Q1 FY21	Q1 FY22	Q1 FY23	Q1 FY24

Existing Mall Specialty Store Sales, Year-on-Year (China, Vietnam)

Q1	*June figures are preliminary.

China : 106.7%

Vietnam: 108.8%

China

Vietnam

114.6%

January	February	March	April	May	June

Operating Income YoY Change Factors

								(Unit: ¥, millions)
						ASEAN
						+371			Q1 FY24
								Operating Income
					Indonesia	3,708
	Q1 FY23		+172		Cambodia
Operating Income	China				-40
3,582		-245	Vietnam
				+239

・Operating income increased +125 million yen, marking a new record high

・China: Decrease in profit due to the impact of profit decline from malls closed in the previous fiscal year

However, specialty store sales at existing malls rose +6.7% year on year.

Profit levels remained at the same as the previous year, excluding the impact of mall closures

・Vietnam: Existing mall sales increased by +8.8% year on year.

Profit growth was in excess of +20% year on year

・Indonesia: Improvement in vacant floor space and customer traffic to existing malls

rose a significant +14.9% year on year

Profitability improved +172 million yen year on year; segment returned to profitability

Financial Results for Q1, FY2024	6
Change in Profit (Loss) by Segment

Q1																																																								(Unit: ¥, millions)
				Operating									Operating								Gross Profit												SG&A									Operating
				Revenue									Costs																			Expenses									Income
								Q1 FY2023	Vs. FY2023					Q1 FY2023	Vs. FY2023						Q1 FY2023	Vs. FY2023						Q1 FY2023	Vs. FY2023						Q1 FY2023	Vs. FY2023
									(Results)					(Results)						(Results)						(Results)						(Results)
	Domestic Mall			79,194				78,625			568				60,443			61,483		-1,039				18,750			17,142			1,608				6,421			6,361			60				12,328			10,780			1,547
			Existing Mall	75,005	74,866	138		56,017	57,640	-1,623		18,988	17,226	1,762				－			－		－				－			－			－
			New Mall*	2,216	1,630	586		2,076	1,456	620		140	174	-34				－			－		－				－			－			－
			Other	1,971	2,128	-156		2,349	2,386	-36		-377	-257	-119				－			－		－				－			－			－
	Urban SC			5,530				5,525			5				5,558			5,574			-16				-27			-49						21				543			436			106				-570			-485			-85
Domestic Total			84,724				84,150			573				66,001			67,057		-1,055				18,722			17,093			1,629				6,965			6,798			166				11,757			10,294			1,462
		China
		16,430	14,391	2,038		13,251	11,126	2,125		3,179	3,265	-	86		923	764	158		2,255	2,501	-245
		ASEAN			8,368				6,987			1,381				6,279			5,414			864				2,089			1,572			516				636			490			145				1,452			1,082			371
			Vietnam	4,013	3,528	485		2,433	2,223	209		1,580	1,304	276		247	211	36		1,332	1,093	239
			Cambodia	2,238	1,899	339		2,080	1,702	378		158	197	-39		101	99	1		56	97	-40
			Indonesia	2,115	1,559	556		1,765	1,488	276		350	70	279		283	176	107		66	-105	172
			Other			－			－		－			－		－		－				－			－					－		3	3	0		-3	-3	-0
Overseas Total			24,799				21,378			3,420				19,530			16,540			2,990				5,268			4,838			430				1,559			1,255			304				3,708			3,582			125
Adjustment	-90			－	-90		-6	-6		－		-84		6	-90			-90				－	-90		6		6			－
Domestic and		109,432			105,529			3,902				85,526			83,592			1,934				23,906			21,937			1,968				8,434			8,054			379				15,472			13,883			1,588
Overseas Total
*New malls opened in FY2023

Financial Results for Q1, FY2024	7

Japan Sales Growth Factors (Renovations and Inbound)

■Renovating Malls and Enacting Priority Measures for Inbound Customers Revenues and Customers YoY

Revenues

Customers

FY2023 Mall Renovations (2023, 2024)

106.7%

103.7%

Q1

Existing Mall Renovation and Expansions

101.8%

100.6%

Mall Enacting Priority Measures for

107.3%

104.8%

Inbound Customers (17 Malls)

Existing 92 Malls (Japan)

103.1%

101.5%

AEON MALL Ota

April 2024 Renovations and Expansions

■ Renovations and Expansions

■ FY2023 Renovated Malls

■ Mall Enacting Priority Measures

for Inbound Customers

Lake town OUTLET

Q1 vs. Plan

Revenues 119.9%

AEON MALL Ota

Q1 vs. Plan

Revenues 110.5%

AEON MALL Hiroshima Fuchu

Q1 YoY

Revenues 115.2%

AEON MALL Makuhari Shintoshin	AEON MALL KYOTO
	Q1 YoY		Q1 YoY
	Revenues 108.4%		Revenues 121.3%

AEON MALL Tokoname

Q1 YoY

Revenues 110.1%

AEON MALL Okinawa Rycom

Q1 YoY

Revenues 118.1%

Financial Results for Q1, FY2024	8

Sales Promotions to Recover Customer Traffic at Existing Malls

Launched Loyal Customer Purchase Program

• AEON Gold Card Members only, 5% off on Customer Appreciation Day

Offers from each specialty store for card use on the 20th and 30th of each month; added a 5% off program for Gold members in addition to specialty store benefits beginning April 2024.

Objectives

• Increase specialty store sales by encouraging purchases by Gold Members, who spend significantly on credit

●Send customers who only use cards at GMS to specialty stores

*Excluding certain specialty stores

More Than 1,500 Events Nationwide During Golden Week

• Many Events to Attract Customers During Golden Week Held 1,621 events at AEON MALL locations nationwide to

attract more customers. We maximized the number of customers attracted during peak season.

Golden Week Results	Revenues				Customers
April 27 (Saturday) to May 6 (Monday)	108.8%		104.9%
Mall Event
			Same Day, YoY

April and May Results

AEON Card and AEON

Pay Sales Composition

	Sales	Vs. Same
	Composition	Day, YoY
April 20	24.59%	+6.87
April 30	24.79%	+5.89
May 20	27.86%	+6.52
May 30	28.54%	+6.15

*Normal sales composition is about 15% on average.

Specialty Store Sales

Same Day, YoY

		Revenues		Customers
			at Checkout
May 30	111.3%	109.3%
June 20	107.2%	107.7%

*Comparison with weekday Customer Appreciation Day

By industry, sales at specialty stores handling high unit-price merchandise clothing (kimono) and apparel (watches and jewelry))

rose to roughly +20%of the

previous year.

AEON MALL Shinrifu North Wing	AEON MALL Rinku Sennan
J League Public Viewing	Baby Crawling Race

AEON Lake Town Bread EXPO

Joint bread-themed events across three buildings

: World Sandwich Expo

: Local Delicious Bread Expo

: Curry Bread Expo

Financial Results for Q1, FY2024	9

Overseas: Specialty Store Sales at Existing Malls, Year-on-Year (by Business Model)

China

Vietnam

Cambodia

			Q1			Q2			Q3			Q4	Full Year	January	February	March		April		May
Specialty store sales		121.8%			138.1%			116.8%			151.0%			130.3%			83.6%			141.2%			109.1%			94.7%			101.5%
	Goods	117.0%		128.4%		110.9%		142.2%		123.6%		79.3%		151.1%		105.7%		92.7%		98.1%
	Dining	135.0%		152.7%		123.1%		163.7%		141.1%		95.5%		118.0%		111.8%		97.5%		106.2%
	Amusement	123.0%		222.2%		154.9%		236.0%		168.4%		85.2%		180.5%		136.7%		101.2%		121.2%
	Cinema	132.5%		303.7%		179.8%		225.2%		181.6%		28.9%		247.5%		146.0%		73.7%		89.1%
No. of visitors		124.7%			141.7%			130.7%			164.9%			138.8%			103.8%			126.2%			120.2%			104.2%			113.2%
			Q1			Q2			Q3			Q4	Full Year	January	February	March		April		May
Specialty store sales		125.4%			97.1%			99.2%			100.2%			104.4%			79.7%			154.7%			114.6%			112.8%			98.1%
	Goods	111.5%		93.1%		99.1%		99.1%		100.4%		87.3%		161.0%		113.0%		109.2%		96.2%
	Dining	137.3%		98.8%		99.9%		104.4%		108.0%		72.5%		147.3%		112.6%		116.0%		99.3%
	Amusement	221.9%		103.0%		99.9%		93.6%		115.6%		52.1%		142.1%		95.3%		103.1%		78.2%
	Cinema	244.2%		129.2%		77.3%		83.8%		119.2%		37.6%		147.9%		184.1%		130.8%		93.5%
No. of visitors		134.4%			103.0%			102.2%			102.8%			109.0%			75.5%			135.1%			108.8%			108.8%			94.5%
			Q1			Q2			Q3			Q4	Full Year	January	February		March			April			May
Specialty store sales		100.7%			84.4%			86.4%		93.8%		90.9%		87.4%		113.2%		104.4%		100.0%		94.1%
	Goods	95.0%		77.9%		78.7%	88.1%	84.7%	85.3%	111.9%	99.3%	97.1%	94.6%
	Dining	105.4%		93.4%		95.2%	101.6%	98.4%	85.6%	110.2%	105.6%	100.9%	95.4%
	Amusement	131.1%		104.4%		97.3%	105.3%	107.4%	85.6%	115.2%	101.4%	93.8%	95.5%
	Cinema	137.0%		93.2%		93.6%	91.9%	99.8%	101.6%	123.3%	135.7%	114.7%	71.8%
No. of visitors		117.0%			99.0%			98.1%		104.0%		103.8%		88.4%		114.2%		110.7%		108.5%		101.7%