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MarketLine Industry Profile

Organic Food in
Asia-Pacific
June 2017

Reference Code: 0200-0853

Publication Date: June 2017

WWW.MARKETLINE.COM
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Asia-Pacific - Organic Food 0200 - 0853 - 2016

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EXECUTIVE SUMMARY
Market value
The Asia-Pacific organic food market grew by 21.9% in 2016 to reach a value of $11,896 million.

Market value forecast


In 2021, the Asia-Pacific organic food market is forecast to have a value of $33,179.4 million, an increase of 178.9%
since 2016.

Category segmentation
Fruit & vegetables is the largest segment of the organic food market in Asia-Pacific, accounting for 31.8% of the market's
total value.

Geography segmentation
China accounts for 51.2% of the Asia-Pacific organic food market value.

Market rivalry
Rivalry in the organic foods market is heightened by the lack of product differentiation, and negligible switching costs for
buyers. Very strong market growth serves to counteract this, however, and as a result overall rivalry is assessed as
moderate.

Asia-Pacific - Organic Food 0200 - 0853 - 2016

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TABLE OF CONTENTS
Executive Summary......................................................................................................................................................... 2

Market value ................................................................................................................................................................ 2

Market value forecast .................................................................................................................................................. 2

Category segmentation ............................................................................................................................................... 2

Geography segmentation ............................................................................................................................................ 2

Market rivalry ............................................................................................................................................................... 2

Market Overview.............................................................................................................................................................. 7

Market definition .......................................................................................................................................................... 7

Market analysis............................................................................................................................................................ 7

Market Data ..................................................................................................................................................................... 8

Market value ................................................................................................................................................................ 8

Market Segmentation ...................................................................................................................................................... 9

Category segmentation ............................................................................................................................................... 9

Geography segmentation .......................................................................................................................................... 10

Market Outlook .............................................................................................................................................................. 11

Market value forecast ................................................................................................................................................ 11

Five Forces Analysis ..................................................................................................................................................... 12

Summary ................................................................................................................................................................... 12

Buyer power .............................................................................................................................................................. 13

Supplier power........................................................................................................................................................... 14

New entrants ............................................................................................................................................................. 15

Threat of substitutes .................................................................................................................................................. 16

Degree of rivalry ........................................................................................................................................................ 17

Leading Companies....................................................................................................................................................... 18

Aeon Co., Ltd............................................................................................................................................................. 18

Natural House............................................................................................................................................................ 22

Seven & i Holdings Co., Ltd....................................................................................................................................... 23

Woolworths ................................................................................................................................................................ 26

Methodology .................................................................................................................................................................. 29

Asia-Pacific - Organic Food 0200 - 0853 - 2016

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Industry associations ................................................................................................................................................. 30

Related MarketLine research .................................................................................................................................... 30

Appendix........................................................................................................................................................................ 31

About MarketLine ...................................................................................................................................................... 31

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LIST OF TABLES
Table 1: Asia-Pacific organic food market value: $ million, 201216 ..............................................................................8

Table 2: AsiaPacific organic food market category segmentation: $ million, 2016........................................................9

Table 3: AsiaPacific organic food market geography segmentation: $ million, 2016 ..................................................10

Table 4: Asia-Pacific organic food market value forecast: $ million, 201621 ..............................................................11

Table 5: Aeon Co., Ltd.: key facts ................................................................................................................................. 18

Table 6: Aeon Co., Ltd.: key financials ($).....................................................................................................................19

Table 7: Aeon Co., Ltd.: key financials ().....................................................................................................................20

Table 8: Aeon Co., Ltd.: key financial ratios ..................................................................................................................20

Table 9: Natural House: key facts ................................................................................................................................. 22

Table 10: Seven & i Holdings Co., Ltd.: key facts .........................................................................................................23

Table 11: Seven & i Holdings Co., Ltd.: key financials ($).............................................................................................24

Table 12: Seven & i Holdings Co., Ltd.: key financials ().............................................................................................24

Table 13: Seven & i Holdings Co., Ltd.: key financial ratios ..........................................................................................24

Table 14: Woolworths: key facts.................................................................................................................................... 26

Table 15: Woolworths: key financials ($).......................................................................................................................27

Table 16: Woolworths: key financials (A$) ....................................................................................................................27

Table 17: Woolworths: key financial ratios ....................................................................................................................27

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LIST OF FIGURES
Figure 1: Asia-Pacific organic food market value: $ million, 201216 .............................................................................8

Figure 2: AsiaPacific organic food market category segmentation: % share, by value, 2016 .......................................9

Figure 3: AsiaPacific organic food market geography segmentation: % share, by value, 2016..................................10

Figure 4: Asia-Pacific organic food market value forecast: $ million, 201621 .............................................................11

Figure 5: Forces driving competition in the organic food market in Asia-Pacific, 2016 .................................................12

Figure 6: Drivers of buyer power in the organic food market in Asia-Pacific, 2016 .......................................................13

Figure 7: Drivers of supplier power in the organic food market in Asia-Pacific, 2016 ...................................................14

Figure 8: Factors influencing the likelihood of new entrants in the organic food market in Asia-Pacific, 2016 .............15

Figure 9: Factors influencing the threat of substitutes in the organic food market in Asia-Pacific, 2016.......................16

Figure 10: Drivers of degree of rivalry in the organic food market in Asia-Pacific, 2016 ...............................................17

Figure 11: Aeon Co., Ltd.: revenues & profitability ........................................................................................................20

Figure 12: Aeon Co., Ltd.: assets & liabilities ................................................................................................................21

Figure 13: Seven & i Holdings Co., Ltd.: revenues & profitability ..................................................................................25

Figure 14: Seven & i Holdings Co., Ltd.: assets & liabilities ..........................................................................................25

Figure 15: Woolworths: revenues & profitability ............................................................................................................28

Figure 16: Woolworths: assets & liabilities ....................................................................................................................28

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MARKET OVERVIEW
Market definition
Organic food is produce that has been independently certified to have been grown free of chemicals. Market values are
taken at retail selling price (RSP). For the purposes of this report, eggs have been classified as part of the meat, fish and
poultry segment. Any currency conversions used in the creation of this report have been calculated using 2016 constant
annual average exchange rates.

For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific, Middle
East, South Africa and Nigeria.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Peru.

Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.

Scandinavia comprises Denmark, Finland, Norway, and Sweden.

Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.

Market analysis
The Asia-Pacific organic food market showed strong double digit growth between 2012 and 2016. Due to consumers
becoming more aware of the health benefits of organic foods and the growing demand this is predicted to accelerate
over the next five years.

Becoming more health conscious is one of the main reasons for more consumers buying organic foods. Adopting this
lifestyle suggests more preventative health management due to the increase in serious ailments such as food allergies,
with Australias food allergy rate among children being among the highest in the world.

The Asia-Pacific organic food market had total revenues of $11,896.0m in 2016, representing a compound annual
growth rate (CAGR) of 16.8% between 2012 and 2016. In comparison, the Singaporean and Chinese markets grew with
CAGRs of 14.7% and 23.1% respectively, over the same period, to reach respective values of $118.6m and $6,086.6m
in 2016.

With the increasing knowledge regarding health benefits of organic food, this is also leading to an increase in the
popularity of products such as organic baby food. While the demand is relatively low in comparison to the rest of market,
there is potential for growth as families make these lifestyle changes.

The fruit & vegetables segment was the markets most lucrative in 2016, with total revenues of $3,783.7m, equivalent to
31.8% of the market's overall value. The prepared food segment contributed revenues of $2,849.1m in 2016, equating to
23.9% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 22.8% for the five-year period
2016 - 2021, which is expected to drive the market to a value of $33,179.4m by the end of 2021. Comparatively, the
Singaporean and Chinese markets will grow with CAGRs of 15.2% and 25.7% respectively, over the same period, to
reach respective values of $240.7m and $19,136.3m in 2021.

The organic food market in Asia-Pacific is growing strongly, driven by countries such as New Zealand where
supermarkets are increasing the size of their organic sections. There has also been a surge in independent organic
cafes as consumers are demanding more from this sector.

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MARKET DATA
Market value
The Asia-Pacific organic food market grew by 21.9% in 2016 to reach a value of $11,896 million.

The compound annual growth rate of the market in the period 201216 was 16.8%.

Table 1: Asia-Pacific organic food market value: $ million, 201216

Year million % Growth


2012 6,385.0
2013 7,098.4 11.2%
2014 8,394.5 18.3%
2015 9,755.0 16.2%
2016 11,896.0 21.9%

CAGR: 201216 16.8%

SOURCE: MARKETLINE MARKETLINE

Figure 1: Asia-Pacific organic food market value: $ million, 201216

SOURCE: MARKETLINE MARKETLINE

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MARKET SEGMENTATION
Category segmentation
Fruit & vegetables is the largest segment of the organic food market in Asia-Pacific, accounting for 31.8% of the market's
total value.

The Prepared food segment accounts for a further 23.9% of the market.

Table 2: AsiaPacific organic food market category segmentation: $ million, 2016

Category 2016 %
Fruit & vegetables 3,783.7 31.8%
Prepared food 2,849.1 23.9%
Bread & grains 1,826.6 15.4%
Dairy 1,286.1 10.8%
Meat, fish & poultry 1,165.3 9.8%
Beverages 985.2 8.3%

Total 11,896 100%

SOURCE: MARKETLINE MARKETLINE

Figure 2: AsiaPacific organic food market category segmentation: % share, by value, 2016

SOURCE: MARKETLINE MARKETLINE

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Geography segmentation
China accounts for 51.2% of the Asia-Pacific organic food market value.

Japan accounts for a further 10% of the Asia-Pacific market.

Table 3: AsiaPacific organic food market geography segmentation: $ million, 2016

Geography 2016 %
China 6,086.6 51.2
Japan 1,191.3 10.0
Singapore 118.6 1.0
Rest of Asia-Pacific 4,499.4 37.8

Total 11,895.9 100%

SOURCE: MARKETLINE MARKETLINE

Figure 3: AsiaPacific organic food market geography segmentation: % share, by value, 2016

SOURCE: MARKETLINE MARKETLINE

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MARKET OUTLOOK
Market value forecast
In 2021, the Asia-Pacific organic food market is forecast to have a value of $33,179.4 million, an increase of 178.9%
since 2016.

The compound annual growth rate of the market in the period 201621 is predicted to be 22.8%.

Table 4: Asia-Pacific organic food market value forecast: $ million, 201621

Year million % Growth


2016 11,896.0 21.9%
2017 14,348.6 20.6%
2018 17,471.7 21.8%
2019 21,463.5 22.8%
2020 26,584.7 23.9%
2021 33,179.4 24.8%

CAGR: 201621 22.8%

SOURCE: MARKETLINE MARKETLINE

Figure 4: Asia-Pacific organic food market value forecast: $ million, 201621

SOURCE: MARKETLINE MARKETLINE

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FIVE FORCES ANALYSIS
The organic food market will be analyzed taking retailers of organic food as players. The key buyers will be taken as end-
consumers, and organic farmers as the key suppliers.

Summary
Figure 5: Forces driving competition in the organic food market in Asia-Pacific, 2016

SOURCE: MARKETLINE MARKETLINE

Rivalry in the organic foods market is heightened by the lack of product differentiation, and negligible switching costs for
buyers. Very strong market growth serves to counteract this, however, and as a result overall rivalry is assessed as
moderate.

As individual consumers, buyers have limited power. However, consumer demand for organic food drives growth and will
likely increase choice as retailers stock a greater variety of organic products.

Suppliers are usually relatively small-scale farmers, whose influence on the market is fairly limited. However, many have
integrated forwards and sell directly to end-consumers, strengthening their position somewhat.

There is a strong threat from non-organic substitutes, which are cheaper to buy and are sold in greater volumes;
although most retailers stock these alongside their organic food products.

New entrants pose a strong threat, since switching costs are relatively low, and demand growth robust, although in all
but the most highly developed Asia-Pacific economies, organic produce tends to remain relatively unknown.

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Buyer power
Figure 6: Drivers of buyer power in the organic food market in Asia-Pacific, 2016

SOURCE: MARKETLINE MARKETLINE

Buyers in this market tend to be end consumers; there are a large number of them and they wield scant financial muscle,
weakening buyer power. As well as this, price sensitivity is fairly low in the organic market, as buyers expect to pay a
premium for the organic production process.

On the other hand, buyer power is strengthened by increasing consumer demand, as retailers are forced to monitor new
buyer behaviors in order to predict the direction of future market expansion. The incentive for retailers to attend to
consumer demand is also bolstered by government moves to support the organic market - when supermarkets are
forced to integrate organic foods in to their product range, they consult buyer demand to shape their organic offering.

Buyer power is also increased in this market by negligible switching costs: although the key segments of this market (fruit
& vegetables, prepared foods, dairy, beverages, bread and grains, meat, fish and poultry) are quite diverse, there is only
limited product differentiation within each category. This makes it easy for buyers to shop elsewhere, and a number of
retailers operate incentive schemes for frequent shoppers in an effort to counteract this.

Overall, buyer power is assessed as moderate.

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Supplier power
Figure 7: Drivers of supplier power in the organic food market in Asia-Pacific, 2016

SOURCE: MARKETLINE MARKETLINE

Organic food has a close association with direct sales to the public. Relatively large quantities of organic food are sold
through farmers' markets directly to the consumer. This is a form of forward integration, which enhances supplier power.

Moreover, strict standards in the production process are integral to the credibility of the organic market. For example, in
Japan, organic certification is regulated by the Ministry of Agriculture, Forestry and Fisheries; only approved products
can be marketed as organic, and carry the Japanese Agricultural Standard 'JAS' label. As a result, retailers depend
heavily on the quality of their suppliers. Retailers and suppliers therefore often have long-term contracts, which increase
supplier power.

Some retailers also strive to offer locally-sourced produce, severely limiting their choice of supplier, and further driving up
supplier power. A number of significant players in the organic market are also committed to an array of ethical standards
when dealing with their suppliers, especially in less developed countries. This further narrows the range of potential
suppliers, and drives up supplier power.

All this said, supplier power is limited by the relatively small size of the typical supplier and the large size of the typical
player, particularly in the case of large supermarkets. This weakness is becoming more pronounced over time as large
retailers increasingly become involved in the organic market: market players such as these dwarf most organic produce
suppliers. Overall, supplier power is assessed as weak.

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New entrants
Figure 8: Factors influencing the likelihood of new entrants in the organic food market in Asia-
Pacific, 2016

SOURCE: MARKETLINE MARKETLINE

Relatively tight regulation in the organic market might serve to deter new entrants: The International Federation of
Organic Agricultural Movement (IFOAM) represents the worldwide body of organic agriculture and provides a platform for
global exchange and co-operation, although regulations differ regionally. That said, in much of the Asia-Pacific region the
organic market remains relatively lightly regulated - especially in the region's developing economies, and enforcement is
often lax even if official standards have been established.

New entrants might also be deterred by the large size of market incumbents, although the diverse nature of leading
players' revenue streams means that there is less likelihood of retaliation, and it is easier to start out in the food retail
industry by focusing on a specialized market, such as organic food. One angle of attack for new entrants is to stress the
care spent on the organic production process. This has proved particularly effective in Asia-Pacific markets such as
China, where concerns about food safety have featured prominently in the news recently.

Very strong historic growth that is predicted to continue in the forecast period is also likely to attract new entrants.
Overall, there is a strong threat of new entrants.

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Threat of substitutes
Figure 9: Factors influencing the threat of substitutes in the organic food market in Asia-Pacific,
2016

SOURCE: MARKETLINE MARKETLINE

The main substitutes to organic foods are their markedly cheaper non-organic equivalents. In solely organic retailers,
organic products are marketed for their environmental benefits and nutritional quality, which limits the threat of cheaper
non-organic products. Exclusively organic outlets tend to be much smaller and much less common than the large
supermarket chains that stock both organic and non-organic produce. In large supermarkets, the threat of substitution
from cheaper non-organic items is much higher.

Another possible alternative to purchasing these types of products is subsistence farming; growing organic agricultural
produce for ones own consumption. However, this activity has switching costs, it is time-consuming, requires some
degree of specialist knowledge, and incurs the cost of purchasing seeds, fertilizer, and gardening products. In addition,
many people do not have the land required to make this a viable option. Moreover, quantity and quality of end produce is
not guaranteed. Even those who can successfully produce some of their own organic food are unlikely to grow
everything they need to meet their own needs; they may still need to purchase some items from market players. Overall,
given the prevalence of cheaper, non-organic alternatives, there is a strong threat from substitutes.

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Degree of rivalry
Figure 10: Drivers of degree of rivalry in the organic food market in Asia-Pacific, 2016

SOURCE: MARKETLINE MARKETLINE

Players within this market range from small specialized organic shops to large supermarket chains. Thus the importance
of organic food revenue differs depending on each market player's level of specialization.

Limited differentiation between organic products within each market segment and negligible switching costs serve to
drive up rivalry.

This is, however, mitigated in instances where players offer a wider selection of products. For large supermarkets,
organic products contribute only a small percentage of overall revenue; most supermarkets also stock non-organic food
and an array of non-food products such as clothing, electricals and homeware. These other products make up the bulk of
these players' income, and so the diverse nature of their businesses limits rivalry between these players in the organic
market.

Very strong market growth also serves to ease the degree of rivalry amongst players, as revenues can be generated
without encroaching on other players shares of the market. Overall, there is a moderate degree of rivalry in the Asia-
Pacific market.

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LEADING COMPANIES
Aeon Co., Ltd.
Table 5: Aeon Co., Ltd.: key facts

Head office: 1-5-1, Nakase, Mihama-ku, Chiba-shi, Chiba, Chubu, JPN


Telephone: 81 43 2126042
Fax: 81 43 2126849
Website: www.aeon.info
Financial year-end: February
Ticker: 8267
Stock exchange: Tokyo

SOURCE: COMPANY WEBSITE MARKETLINE

Aeon, through its subsidiaries, is engaged in retail operations in Japan, ASEAN countries, and China. The company also
offers various services including financial services, property development and leasing of shopping centers, facilities
management, and amusement services. By the end of FY2017, Aeon operated 625 general merchandise stores and 274
malls across Japan and in international markets.

The company operates through nine business segments: Supermarket and Discount Store, GMS, Drugstore and
Pharmacy, Services and Specialty Store, International, Small-Sized Store, Financial Services, Shopping Center
Development and Other.

The Supermarket and Discount Store segment includes supermarkets and discount stores. Aeon manages this segment
through its subsidiaries, United Super Markets Holdings, Maxvalu Tohoku Co., Inageya Co., Belc Co., Kasumi Co., Big-A
Co., The Daiei, The Maruetsu and Red Cabbage Co., among others. In FY2017, the Supermarket and Discount Store
segment reported revenue of JPY 2,890,232 million, which accounted for 35.2% of the company's total revenue.

The GMS segment includes general merchandise stores that offer clothing, food and household goods. Some of the
subsidiaries in this segment include Aeon Retail Co., Aeon Hokkaido Corporation, Aeon Kyushu Co., Aeonbike Co.,
Topvalu Collection Co., Bon Belta Co., Aeon Bakery Co., Sunday Co., Aeon Supercenter Co., Aeon Liquor Co. and Aeon
Ryukyu Co. In FY2017, the GMS segment reported revenue of JPY 3,012,263 million, which accounted for 36.7% of the
company's total revenue.

Drugstore and Pharmacy segment offers drugstores and pharmacies. The segment subsidiaries include Medical Ikkou
Co., Welcia Yakkyoku Co., Shimizu Yakuhin CO., CFS Corporation, Welpark Co., and Zag Zag Co. In FY2017, the
Drugstore and Pharmacy segment reported revenue of JPY 623,631 million, which accounted for 7.6% of the company's
total revenue.

Aeon's Service and Specialty Store segment provides facilities management services, and amusement services. It also
operates restaurants and specialty stores that sell casual apparel, women's apparel, footwear, and others. The company
manages this segment through Aeon Delight Co., Zwei Co., Aeon Eaheart Co., Aeon Entertainment Co., GFoot Co.,
Claire's Nippon Co., Branshes Co., AT Japan Co. and Aeon Body Co., among others. In FY2017, the Services and
Specialty Store segment reported revenue of JPY 765,669 million, which accounted for 9.3% of the company's total
revenue.

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The International Business segment includes retail stores in the ASEAN region and China. The companys subsidiaries
in ASEAN region include Aeon Asia SDN. BHD., Aeon Co. (M) BHD., Aeon Big (M) SDN.BHD., Aeon Index Living SDN.
BHD., Aeon Vietnam Co., and Aeon Cambodia Co., among others. Its subsidiaries in China region include Aeon (China)
CO., Aeon Stores (Hong Kong) Co., Aeon East China (SUZHOU) CO., AEON South China Co., and BEIJING AEON
CO., among others. In FY2017, the International segment reported revenue of JPY 398,395 million, which accounted for
4.9% of the company's total revenue.

Small-Sized Store segment includes convenience stores, small-scale supermarkets, and specialty stores that sell
packaged lunches and ready-to-eat meals. The subsidiaries in the segment include Ministop CO., Origin Toshu CO., and
My Basket CO. In FY2017, the Small-Sized Store segment reported revenue of JPY 378,703 million, which accounted
for 4.6% of the company's total revenue.

The Financial Services segment includes credit card, fee and banking business. The key subsidiaries in this segment
include Aeon Financial Service Co., Aeon Credit Service (Asia) Co., Aeon REIT Investment Corporation, Aeon Housing
Loan Service Co., FeliCa Pocket Marketing and Aeon Insurance Service Co., among others. In FY2017, the Financial
Services segment reported revenue of JPY 372,046 million, which accounted for 4.5% of the company's total revenue.

The Shopping Center Development segment engages in the development and leasing of shopping centers in Japan and
Asian countries. In association with other segments, Shopping Center Development segment works to enhance its
services and facilities in accordance with the evolving market trends. Aeon manages this segment through its
subsidiaries, Aeon Mall Co. and Aeon Town Co. In FY2017, the Shopping Center Development segment reported
revenue of JPY 315,940 million, which accounted for 3.8% of the company's total revenue.

The Other segment includes digital business. The segment operates through AEON.com Co.

Geographically, the company classifies its operations into four segments, namely Japan, ASEAN, China, and other
countries. In FY2017, Japan segment accounted for 91.2% of the company's total revenues; followed by ASEAN with
4.1%; China with 3%; and other countries with 1.6%.

Key Metrics
The company recorded revenues of $75,490 million in the fiscal year ending February 2017, an increase of .4%
compared to fiscal 2016. Its net income was $103 million in fiscal 2017, compared to a net income of $55 million in the
preceding year.

Table 6: Aeon Co., Ltd.: key financials ($)

$ million 2013 2014 2015 2016 2017


Revenues 52,274.8 58,801.6 65,085.6 75,182.8 75,490.0
Net income (loss) 685.1 419.3 386.8 55.2 103.5
Total assets 52,638.3 62,664.3 72,268.7 75,634.7 80,461.7
Total liabilities 39,336.5 47,175.1 55,442.6 58,905.1 70,059.0

SOURCE: COMPANY FILINGS MARKETLINE

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Table 7: Aeon Co., Ltd.: key financials ()

million 2013 2014 2015 2016 2017


Revenues 5,685,303.0 6,395,142.0 7,078,577.0 8,176,732.0 8,210,145.0
Net income (loss) 74,511.0 45,600.0 42,069.0 6,008.0 11,255.0
Total assets 5,724,835.0 6,815,241.0 7,859,803.0 8,225,874.0 8,750,856.0
Total liabilities 4,278,159.0 5,130,674.0 6,029,825.0 6,406,402.0 7,619,476.0

SOURCE: COMPANY FILINGS MARKETLINE

Table 8: Aeon Co., Ltd.: key financial ratios

Ratio 2013 2014 2015 2016 2017


Profit margin 1.3% 0.7% 0.6% 0.1% 0.1%
Revenue growth 9.2% 12.5% 10.7% 15.5% 0.4%
Asset growth 41.4% 19.0% 15.3% 4.7% 6.4%
Liabilities growth 54.6% 19.9% 17.5% 6.2% 18.9%
Debt/asset ratio 74.7% 75.3% 76.7% 77.9% 87.1%
Return on assets 1.5% 0.7% 0.6% 0.1% 0.1%

SOURCE: COMPANY FILINGS MARKETLINE

Figure 11: Aeon Co., Ltd.: revenues & profitability

SOURCE: COMPANY FILINGS MARKETLINE

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Figure 12: Aeon Co., Ltd.: assets & liabilities

SOURCE: COMPANY FILINGS MARKETLINE

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Natural House
Table 9: Natural House: key facts

Head office: 3-6-18 Kita-Aoyama, Minato-ku, JPN


Telephone: 81 3 3498 2277
Website: www.naturalhouse.co.jp/

SOURCE: COMPANY WEBSITE MARKETLINE

Natural House is a Japanese retail chain that specializes in organic and natural products. The companys stores offer
fresh produce, deli, bento, natural cosmetics, medicinal herbs, and other products. The companys flagship store stocks
the largest amount of organic and health foods in Tokyo. Natural House also operates an online store.

Key Metrics
Financial information is not available for this privately held company.

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Seven & i Holdings Co., Ltd.
Table 10: Seven & i Holdings Co., Ltd.: key facts

Head office: 8-8 Niban-cho, CHIYODA-KU, Tokyo, JPN


Telephone: 81 3 62383000
Website: www.7andi.comen
Financial year-end: February
Ticker: 3382
Stock exchange: Tokyo

SOURCE: COMPANY WEBSITE MARKETLINE

Seven & i is a holding company engaged in the operation of various retail formats across Japan, North America, and
other regions. At the end of FY2017, the company operated nearly 61,000 stores globally.

The company, through its subsidiaries and associated companies, operates in seven business segments: convenience
stores, superstores, department stores, mail order services, financial services, food services and others.

The convenience stores segment operates convenience stores under the 7-Eleven banners in Japan, North America and
China. Its principal subsidiaries include Seven-Eleven Japan, 7-Eleven, Seven-Eleven (China) Investment, Seven-
Eleven (Chengdu), Seven-Eleven Hawaii, Seven-Eleven (Beijing) and Seven-Eleven (Tianjin).

The superstores segment comprises superstores that offer apparel, household items and food in Japan and China. The
segment also includes food supermarkets in Japan and Beijing and specialty stores. The segment's principal subsidiaries
are Ito-Yokado, York-Benimaru, York Mart, Ito-Yokado (China) Investment, Akachan Honpo, Hua Tang Yokado
Commercial and Chengdu Ito-Yokado.

The department stores segment operates department stores, high-end food supermarkets, and miscellaneous goods
specialty stores. It primarily operates through Sogo & Seibu, Shell Garden subsidiaries and The Loft.

The mail order services include the delivery of products and services primarily through online stores and catalogs. The
principal subsidiaries of this segment include Nissen Holdings, Nissen, SHADDY, Seven & i Netmedia, Seven-Meal
Service and Barneys Japan.

The financial services segment encompasses automated teller machine (ATM) operations, credit card operations,
electronic money services, leasing operations and insurance operations in Japan. The segment's principal subsidiaries
include Seven Bank, Seven Financial Service, Seven Card Service, Seven CS Card Service and FCTI.

The food services segment operates restaurant and fast food divisions in Japan. It is also engaged in provision of meal
services at company cafeterias, hospitals and schools. Its principal subsidiary is Seven & i Food Systems.

The other business activities include internet-related services, meal delivery services, publishing, property management
businesses, and community school businesses in Japan. The principal subsidiaries of this segment include Seven & i
Net Media, Barneys Japan, Seven-Meal Services and 7dream.com.

Key Metrics
The company recorded revenues of $53,658 million in the fiscal year ending February 2017, a decrease of 3.5%
compared to fiscal 2016. Its net income was $890 million in fiscal 2017, compared to a net income of $1,480 million in
the preceding year.

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Table 11: Seven & i Holdings Co., Ltd.: key financials ($)

$ million 2013 2014 2015 2016 2017


Revenues 45,896.8 51,783.0 55,526.5 55,588.6 53,657.6
Net income (loss) 1,269.5 1,615.4 1,590.5 1,479.7 889.6
Total assets 39,191.6 44,239.3 48,131.7 50,034.9 50,652.7
Total liabilities 20,850.5 23,812.7 25,780.1 28,194.9 27,888.4

SOURCE: COMPANY FILINGS MARKETLINE

Table 12: Seven & i Holdings Co., Ltd.: key financials ()

million 2013 2014 2015 2016 2017


Revenues 4,991,642.0 5,631,819.0 6,038,948.0 6,045,704.0 5,835,689.0
Net income (loss) 138,064.0 175,691.0 172,979.0 160,930.0 96,750.0
Total assets 4,262,397.0 4,811,380.0 5,234,705.0 5,441,691.0 5,508,888.0
Total liabilities 2,267,658.0 2,589,823.0 2,803,789.0 3,066,421.0 3,033,082.0

SOURCE: COMPANY FILINGS MARKETLINE

Table 13: Seven & i Holdings Co., Ltd.: key financial ratios

Ratio 2013 2014 2015 2016 2017


Profit margin 2.8% 3.1% 2.9% 2.7% 1.7%
Revenue growth 4.3% 12.8% 7.2% 0.1% (3.5%)
Asset growth 9.6% 12.9% 8.8% 4.0% 1.2%
Liabilities growth 11.8% 14.2% 8.3% 9.4% (1.1%)
Debt/asset ratio 53.2% 53.8% 53.6% 56.4% 55.1%
Return on assets 3.4% 3.9% 3.4% 3.0% 1.8%

SOURCE: COMPANY FILINGS MARKETLINE

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Figure 13: Seven & i Holdings Co., Ltd.: revenues & profitability

SOURCE: COMPANY FILINGS MARKETLINE

Figure 14: Seven & i Holdings Co., Ltd.: assets & liabilities

SOURCE: COMPANY FILINGS MARKETLINE

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Woolworths
Table 14: Woolworths: key facts

Head office: 1 Woolworths Way, Bella Vista, New South Wales 2153, AUS
Telephone: 61 2 8885 0000
Website: www.woolworthslimited.com.au
Financial year-end: June
Ticker: WOW
Stock exchange: Australian

SOURCE: COMPANY WEBSITE MARKETLINE

Woolworths is engaged in retailing food, liquor, petrol, general merchandise and home improvement products, and also
in hotels business. At the end of FY2016, the company operated 3,827 stores in Australia and New Zealand.

The company operates through five segments: Australian food, liquor and petrol; New Zealand supermarkets; general
merchandise; home improvement; and hotels.

The Australian food, liquor and petrol segment engages in the procurement of food, liquor and petroleum products for
resale to customers primarily in Australia. In FY2016, the segment operated 992 Woolworths Supermarkets, five Thomas
Dux stores, 1,486 liquor stores under Dan Murphy's and BWS banners, and 530 petrol canopies. Woolworths also
operates the Cellarmasters, Langtons and winemarket.com.au online platforms.

The New Zealand supermarkets segment procures food and liquor products for resale to customers in New Zealand. In
FY2016, the company operated 187 Countdown Supermarkets. The segment also conducts wholesale operation through
which it supplies a further 64 stores.

The general merchandise segment is engaged in the procurement of discount general merchandise products for resale
to customers mainly in Australia. It operated 186 BIG W stores and five EziBuy stores by the end of FY2016. Further, the
segment also operates the EziBuy direct-to-consumer online platform.

The home improvement business segment procures home improvement products for resale to customers in Australia. In
FY2016, the segment operated 63 Masters stores and 43 Home Timber and Hardware stores as well as a wholesale
operation which supplies a further 349 stores.

The hotels segment provides leisure and hospitality services, including accommodation, food and alcohol, entertainment
and gaming in Australia. The segment is comprised of 330 hotels including bars, dining, accommodation, venue hire and
gaming operations.

The company also has an unallocated group which comprises other operating segments that are not separately
reportable in addition to various support functions, including property and head office costs..

Key Metrics
The company recorded revenues of $43,309 million in the fiscal year ending June 2016, a decrease of 4.3% compared
to fiscal 2015. Its net loss was $918 million in fiscal 2016, compared to a net income of $1,588 million in the preceding
year.

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Table 15: Woolworths: key financials ($)

$ million 2012 2013 2014 2015 2016


Revenues 41,074.8 43,487.9 45,298.4 45,236.1 43,309.2
Net income (loss) 1,350.4 1,678.8 1,822.1 1,588.5 (917.7)
Total assets 16,038.6 16,535.7 17,988.8 18,829.8 17,466.4
Total liabilities 9,761.7 9,624.2 10,166.5 10,556.7 11,171.2
Employees 190,000 197,000 198,000 198,000 205,000

SOURCE: COMPANY FILINGS MARKETLINE

Table 16: Woolworths: key financials (A$)

A$ million 2012 2013 2014 2015 2016


Revenues 55,269.0 58,516.0 60,952.2 60,868.4 58,275.5
Net income (loss) 1,817.0 2,259.0 2,451.7 2,137.4 (1,234.8)
Total assets 21,581.0 22,250.0 24,205.2 25,336.8 23,502.2
Total liabilities 13,135.0 12,950.0 13,679.8 14,204.8 15,031.6

SOURCE: COMPANY FILINGS MARKETLINE

Table 17: Woolworths: key financial ratios

Ratio 2012 2013 2014 2015 2016


Profit margin 3.3% 3.9% 4.0% 3.5% (2.1%)
Revenue growth 1.8% 5.9% 4.2% (0.1%) (4.3%)
Asset growth 2.3% 3.1% 8.8% 4.7% (7.2%)
Liabilities growth (0.9%) (1.4%) 5.6% 3.8% 5.8%
Debt/asset ratio 60.9% 58.2% 56.5% 56.1% 64.0%
Return on assets 8.5% 10.3% 10.6% 8.6% (5.1%)
Revenue per employee $216,183 $220,751 $228,780 $228,465 $211,264
Profit per employee $7,107 $8,522 $9,202 $8,023 ($4,476)

SOURCE: COMPANY FILINGS MARKETLINE

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Figure 15: Woolworths: revenues & profitability

SOURCE: COMPANY FILINGS MARKETLINE

Figure 16: Woolworths: assets & liabilities

SOURCE: COMPANY FILINGS MARKETLINE

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METHODOLOGY
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analysis from industry experts using highly complex modeling & forecasting tools, MarketLines in-house databases
provide the foundation for all related industry profiles

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profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview

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market and our clients

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trends

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

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Industry associations
JPN Organic Agriculture Association
No. 501, Mizusima-mansion, 3-17-12, Hongo, Bunkyo-ku, Tokyo, 113-0033, JPN
Tel.: 81 3 3818 3078
Fax: 81 3 3818 3417
www.joaa.net
Organic Food Development Center
State Environmental Protection Administration of CHN, 8 Jiangwangmiao Street, Nanjing 210042, CHN
Tel.: 86 25 8542 5370
Fax: 86 25 8542 0606
www.ofdc.org.cn

Related MarketLine research


Industry Profile
Global Organic Food

Organic Food in Europe

Organic Food in Japan

Organic Food in the United States

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APPENDIX
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