a Planting Seeds of Growth Weare ON AEON 2021 Company Profile01 Pursuing peace, respecting humanity, and contributing to local communities, always with the customer's point view as its core. Peace Tre word acon (EON) has its origins in a Latin root meaning “ctemity." ‘The customers’ belie{S and desires comprise the central core of our philosophy. At AAcon, our eternal mission as a corporate group is to benefit our customers, and our ‘operations ae thus customer-focused to the highest degree The Customer ‘Acon Basie Principles are the folowing: “Peace” —_Acon is a corporate group whose operations are dedicated to the pursuit of peace through prosperity “People” con is a corporate group that respects human dignity and values People personal restionshps. “Community” Acon is a corporate group rooted in local community life and dedicated to making a continuing contribu Community tothe community (On the basis of the Aeon Basie Principles, Aeon practices its “Customer-First” philosophy with its ever-lasting innovative spirit. Aeon, a company enriching the lives of people, the community and the environment In order to realize the wellbeing of customers who wish to “ive a healthy life both in mind and body,” and “engage in work based in the ‘community and live comfortably ithe community” besides satisfying their material reds, and to resolve the challenges faced by local communities and environmental issues, AAcon will cooperate with many stakeholders to contribute to a sustainable development and the creation of a prosperous future partner, \e {for new growth through five reforms, namely “Acceleration and evolution ofthe Shift to Digital Markets," “Establishment of unique | | | a B EI al = cS | : re E aval | would first ofall like to express my sincere appreciation to all of values through the supply chain,” “Advancement of Health & ‘our stakeholders for your continued patronage. Wellness for @ new era,” "Creation ofthe Acon Living Zone,” and The COVID-19 pandemic has brought changes to society at an “Further acceleration of the Shift to Asia.” accelerating speed and has fundamentally changed economic We will also step up our efforts inthe ares of environmental and activities and people’s lifestyles. Customer values and behavior have social contribution activities, and accelerate measures toward transformed, 1d the impact on the overall macroeconomy is realizing a decerbonized, circular society such as shift electricity expected to continue for some time. addition, due to demographic _used at shopping centers and stores to renewable energy, besides changes, the climate change erisis, penetration of digital technology switching to environment-friendly materials for private brand inall aspects of our lives, and growing awareness about the products, The tre planting activities that we have conducted as @ environment and health, the environment surrounding our business group for more than 30 years will continue tobe promoted together is now at a major turning point. By recognizing these major changes __with the people in the community 28 an opportunity for growth, I believe itis Avon's mission to Based on the Acon Basic Principles of “Pursuing peace, respecting continue to respond to customer needs and ereate new markets, humanity, and contributing to local communities, always with the In April 2021, Acon formulated the Medium-term Management Plan customer's point of view as its ere,” Aeon practices its to ensure sustainable growth after 2025, Inthe regions of Japan, “Customer-First” philosophy with its everlasting innovative spirit, China and ASEAN where we operate our business, we sim to realize and we hope to continue being @ corporate group that people in the sustainable, circular economy-focused management that leads to community look for growth and offer their support Fawr 02 enriching the local community, and establish a business foundation Direct, Present and Represonaive Execuve Otic ‘een C0, LiAiming for “Five BSC) TTL WIC Shift to Asian WEE TT Carr Health C7 Wellness Ct eT ei Acceleration and evolution of the Shift to Digital Markets Offering a seamless shopping experience by integrating stores and digital functions In order to offer “experiences” that ae tailored tothe lifestyles ofeach customer, Acon will aveclerate the integration of digital technology with its stengths ia produets ser locations offered by Acon’s wide range of businesses. In addition to expanding ¢ the online supermarket, Acon has begun prepering forthe full-scale operation of next-generation will improve customer convenience by expanding the introduction of “Regi-Go" Go," self-checkout systems for customers using dedicated terminals and appliat Smart Technology Co, Ltd. established in October 2620 will focus on developing the Group's digital infrastructure and promote higher efficiency of store operations using Al provision of products and services using data ‘commerce platform that incorporates the knowhow of UK-based Oeada, Aeon business growth that Reforms” ‘Customer behavior, awareness and valves have changed ‘dramatically due to the COVID-19 pandemic. As digital technology becomes apart of our lives in various aspects, the lifestyles of customers are expected to undergo further changes. ‘Acon's ideal state for 2030 is to achieve sustainable, cireular ‘economy-focused management in which Acon's growth in local ‘communities directly leads tothe enrichment of local ‘community life. In order to realize this, Aeon will establish a ‘business foundation for growth by 2025, ‘Aeon has responded to various changes in the business ‘environment by transforming itselfto achieve continued growth, ‘The Medium-term Management Plan through PY202S has set forth “Five Reforms” tobe achieved and aims to deliver new ‘values to customers with the perspective that goes “beyond ‘ail” of conventional business fields. Avon will continue its reform challenges to become a truly unique and special member of the community. vices and commerce and the and “Scan & ions, Acon snd the leads to enriching local communities Undertaken by Aeon CEU CRC SLD Creating and delivering products and services with values that only Aeon can offer ‘Aeon will re e and propose unique values that reflect customer needs, precisely because Acon operates real ores. Starting with con's private ‘rand “Topwslu,” development of products that contribute to revitalizing regional industries and products that leverage Aeon’s expertise will be accelerated. At the same time, Acon will advance reforms inthe entice supply chain from prodvction, processing fo consumption by the customer, and aim to realize ful, altactive product lineup ftom the global, national and local point of view \egetve series that uses plan-serived Development of local brands TUCO Aeon is supporting lifestyles in the community, creating bases for living that lead to enriching the community ‘Complement Toca needs ‘up until now, and build an Acon Living Zone tat is more deeply rooted in ‘the community than before, While expanding products and services that revitalize the community, Aeon will supplement social capital needed in ‘each community to help enrich customer lifestyles and make them more convenient, Aeon will serve as the community base inthe region and meet the expectations of customers who wish to “enrich the local community.” OCU ue a Responding to the new and growing health needs dh Be vem Gig” Meaty me SS & ‘The “health” factor willbe linked to Acon’s extensive business fields, which include food, clothing and housing, drugstore, finance, and services, to respond to new health needs that go beyond the healtheare field and int the wellness field that covers pre-symptomatic treatment, sports and beauty. By rasping the potential needs of individual customers, ‘Acon will develop new products and services across ts businesses RL CONSE UUE Ley Accelerating growth speed through both brick-and-mortar stores and digital business Because the digital busines in retail matets in Asi is growing ata faster pace than the offline business, Aeon will accelerate its growth speed by both expanding the brick-and-mortar sore neiork and promoting digital busines. In China, General Merchandise Store Business initiatives using cutting-edge digital technology wll be promoted. In ASEAN, Acon will aceeratemuliformat tesxpansion in Vietnam, end develop the digital business ‘san carnings pillar while revitalizing existing stores by refurbishing them in Malaysia, and this approach will be applied horizontally to other Asian countries, nd opering cf Aeon Malla Phong Le Chan in Dos. 2020Realization of a Decarbonized Society Accelerating the Aeon Decarbonization Vision 2050 ‘Avon has seta target to reduce the total amoust of CO: ef. emitted by stores 0 zer0 by 2050. The shift to renewable energy will be accelerated by having its facilities use electricity generated by the solar panels installed onsite and Acon will also expand the installation and use of recharging stations for electric vehicles, and work to prevent leaks and promote the introduction of natural refrigerants, This will be a combined effort by all stakeholders Uecarbonized society, involvin customers that area part of th including product production and logistics. 1 of fluorocerbons business partners aad entire supply chain lize a |Azon Mall Ageo using 100% renewable energy opened in Dec. 2070. Aeon has ses targets ty sed a all 150 Ao Walls vapan to 100% renewable energy by 2025, shitthe eect ‘Aeon will help realize a decarbonized society through a three-pronged approach for reducing greenhouse gases (hereinafter “CO, ED xr ees We will educe the total CO: emissions from our stores to zero by 2050, ‘We will continue our efforts to achieve vero COs «mitsions from our business operations We wil cooperate with our customers fo the realization of decssbonized society RAMMED We vit reduce the total CO? emissions from stores by 35% by 2030 (compared with 2010) 05 ‘Approx. 90% of Azon's COs. Ts generated from olecticty Surplus electicty (fad 2am Fibases BS COs omissions purchasing pris Fer wil end customers recive “ WAON pot Shopping using WAON points Energy conservation isons iy recut dct cet vos CEE SER SS grammer Better Use of Resources Formulation of the Aeon Plastic Usage Policy ‘Avon has formulated the Aeon Plastic Usage Policy as part o its efforts to realize a decarbonized and resource recycling society Initiatives include reviewing the use of disposable plastic products, converting from plastic made from fossil fuels o those made from cenvironment-friendly materials, and building a resource reeycling ‘model based around the stores. Through its stores, products and services, Acon is working with all stakcholders to establish a new way of life through recycling and reuse of resources Targets» Alm or sustanable plastic use with ze C02 emiaslns by 2050 Reducing food waste Reducing food waste is a major issue forthe retail industry. Acon has seta target to halve food waste by 2025 compared to FY2015, and is ‘working to improve sales floor management and order accuracy using AL utilizing new technology to extend expiration dates, besides other ‘measures. Building of food resource recycling models is also underway to utlize resources rather than simply disposing of ther In Addition, Aeon is promoting the Japan Project “10x20%x30 Food Loss ‘and Waste Initiative” shat is taken on by the entire supply chai. DU-YPL Peeremce = SELE Measures focuses ‘stores and products Through communication with customers ‘Together with loc communi tos Saeancs 10X20X30 Enriching life, making it more enjoyable Topvalu’s Four Brands geri oT Topratu embodies the Ason Basi Prineples, with customer vices the origin of product development tat is nfused with integrity ianovation and passion. While responding tothe ‘pil changing market enviroment, Topvaly pursues nent needs in addition othe apparent aceds in dally ie, ensures strict unlit control standards and voluntary inspections, and hasan ¢stablised development system to offer easyto-prepare, ith value long wih liable information and services that are nique to Topval “Topvaluhas four brands o offer product to suit the itestyles and needs of customers conveniont produ 06Ber Lely CUE d © Conservation of Biodiversity ‘Aeon Forest Programs embody the Aeon Basic Principles When Acon opens a new store, the Acon Hometown Forests Program that began in 1991 plants tres suited tothe local environment on the new site together with the customers, The total numberof trees planted as reached 12,226,872 tres (as of end of February 2021) through the Acon Hometown Forests Program, AFON Environmental Foundation, and ‘Acon Tohoku Reconstruction Hometown Forests Program combined. The properly maintained forests have grown with the vigor ofthe trees, and after 20 to 30 years, they are now rich frests with ecological value and serve as a place where people in the community can gather, abi ‘The Ktsu Aeon Forest Program conducted in ‘Apr'202" plates 1800 tees of 17 vee species nate tthe area og Tre plang is partof re Aeon Sctvtes atthe woes, Sustainable procurement to pass on nature's blessings to the next generation Cur lives are supported by the benefits obtained from the ecosystem, In order to ‘pass on these benefits tothe next generation, Acon is promoting higher sustainability in the procurement ofall of its products In the area of eco-lbelling of fishery and aquaculture products, in 2006, Acon was the fist general rtailerin Japan to sell Alaskan sockeye salmon with MSC-certfication, andin 2014 began sales of ASC-certified products. Similar policies have sine been established inthe areas of agricultural, livestock and processed products, and Aeon is actively expanding products that have obtained sustainability-proven international ‘third-party certification such as organie certification and fartrade certification Aeon ASC-certied toms spanning 12"sh o7 roa 2h 3 * eee 2 805m) TH eet NP 8 Malaysia Cambodia 569,04 0trees SOs 111,006:rees 200F .. oress planted by cusare's are gown wth ate and regularly mained and manages Including pruning and img. 35 of enact Feoruary 2021, Continuing to propose better lifestyles that connect to the future through business activities Coexistence with the Local Community Acting as a lifeline to safeguard community life ‘Based on the basic principle of being rooted in local community life and dedicated to making 4 continuing contribution to she communi ‘Acon strives to create an environment whe people inthe community ean ive with peace of rind, To suitably offer products and services sought by customers has remained Acon's "nveavering mission over the years In light of the COVID-19 pandemic, Acon established various epidemic prevention systems and quickly launched services that identified the ae changes in customer lifestyles and purchasing ‘bchavior due tothe changing social environment, in order to offer support to enrich the lives of people both in mind and body. Serice Shaping the future of the community as a member of the local community ‘Acon is committed to resolving issues faced by local communities together withthe people in the community. Through cooperation with local municipalities, Acon is promoting initiatives such as Gotouchi (Regional) WAON in whic a part of the proceeds from sales goes to social contributions for communities, the ‘Aeon Happy Yellow Receipt Campaign in ‘which customers place yellow receipts issued ‘on the 11th of every month inthe box of the ‘organization they wish to support and each “organization receives goods worth 1% of the we yonat total value of receipts collected, as well a the oe ‘Acon Children’s Cafeteria Support Group to support children who have been seriously affected by the COVID-19 pandemic. Fostering a corporate culture in which diverse personnel can fully demonstrate thelr a ities inside anon conpery and etbshing job 9 sere sa Beene 7a 27,072.69 minor ov spr 324.17 maton sey Creation of the Business Partner Hotline uses paraets with ean o come wey and scaty 0809 Aeon’s Global Business Expan: @ Service Business © Specialty Store ‘@ Drugstore (@ Financial Service @ Mal-type sc esc © Other Retail Store China ecms Mt ecys @ Service Business Financial Service © Mal-type Sc (© Other Retal Store South Korea ecvs Malaysia ecu osm eps @ Service Business (@ Financial Service © Mal-type sc © Other Retail Store ® 8 BBReNss Thailand osu Service Business (© Financial Service @ otrerRetailStore ‘The Philippines evs @ Service Business (© Financial Service Indonesia eoms (@ Service Business (© Financial Service ‘@ Mall-typesc Vietnam coms es ecys Service Business (© Financial Service (© Mal-typeSC © other Retail Store Cambodia eoms osu @ Service Business (© Financial Service ‘@ Mall-type sc India (© Financial Service 10 Australia Operating revenue (tenon) "Ordinary Income er Yor) ——— @ Major Group Companies by business segment. ‘This sagment operate general merchandise stoves 0 enicn the everyday Wes of customers wih peciaiad product Inaups ane soviet. “his sgmon poralassugsiores an dlsposing pharmacies o hap bal resides ‘marian the own heath. In adler to broacenng the produc! neps ror medical produts and dally nocetsives shea ood grodt, ts expancing ts roca © Ineluce dlspensing for ome cae patents st weucin novos AEON CO.,LTD. Pure holding company Establishment Soptombor 1926 ‘Capel: ¥220,007 millon * Operating Revenue (7) by Segment (FY2020)" 0.6. 45s. 70%. 356 53. 10.4%. ‘This seamen Asian count Ir eooporation with stnor cus panes Supsa usnass 1 Supprg it avg nese 1 sara 8 Spocay Sie Bes Joe8 and epesies connunty-tandly hopping malin Japan and working to nance ts ‘fervces and aciios in actorance wit changing tends soca ‘Tne segment provides services tal ma ko everyday Yo more convaniont ang comorabl, and ala oprales an arty f specially sores aor io ivertying tfear co. tro. tesco ‘This spmant operates geneal marchands ‘er beings nina and ASEAN count tors rupees, slesunt store and ‘The sors, roduls and sevens ae {albredto te ory of erexpacivecounes. eg} Lim i seach co, Aeon vet e010 Asean 1 acon co.) su 1 teow nn sot 1 seo soo “This segment ia in eharge ofthe product development and quality contol for Aone ‘TOPVALLJerand as wt as eabichng he raster suchas gic, toms an, ‘This segment oer integrated thancil services that comaine cre banking, Innurance aries, and emoney WAON cara In Assan cout, manly operates Myanmar Singapore ecus 2 @ drugstore 0 M 9 (© Financial Service 6 Australia (© Tasmania operated form Laos (© Financial Service 1 19,288 storestocations (@GMS (General Merchandise Store) 613 “e@sM(Supermarket) 2288 @0s(Discount Store) 598 etic{Hteme Center) ne (@cvs(Corvenience Store) 5,300 Service Business 1,988 @speciaty Store 3819 drugstore 2,598 Financial Service 636 ‘eMall-type SC(Shopping Center) 252" (@NSC (Neighborhood-type Shopping Center) 14772 @Other Retail Store 1278 1 (@Tasmania operated farm "Numer of stares an locations operated ay consldateasubssais and equlyemetnos ais 1 Aeawcncr stave sin 80. 1 Aeow eneor seavice (eax 1 Aeon THAN NSHP TRAIAN) LE 1 An ranean on. 1 {ON TOPAL OMG NG} 0 BED 10cad 1758~_ Early Years "hes SaaemanOxeda ets Okada pracezese company of se) Yoke Cy Me Prefecture (Cina ame hha ten caned name te Oadtyain 887 ‘hes Surman Oka retraced kaj a ajo stuck ampuryanetabite ates KnanoFable Ste (Chagoeronee asaya 958 Kanchi Flaiestbshed Fatal ini hy, ie Preece scan Jeo how extablienTyoaka ly Osha rete (Changed nae Shon 86) neste woes IEEE Dons .00 chr ws to okack iy, Ae Prete 1969~ Promotion of Federation Management and Business Diversification ete Jao Ca, i a cope puis stl trough jot veto Oka, Fa ané Shir etait iaran hy Ca, a lush etl srpent buses Deed and inode Ci, o's est rate bare poset Jasco stad nth st Sets of he Tokyo Osaka ad Mago Stok Este Js Coroary Weare Fad ese Aeon Wear Fred lene No Cre evo eet, on Ce Sonic, LM at Grp arc sevics bases Estblbed Ble Grass C2, Li. est Cox, Li) laueesthe Gaps series respec ste bess 1985~ _ALeap to Become a Global Corporate Group Ft ovoreas cre opened alesa sea Group renames as ae ead etd Aon Coup 1% clu present Aon 1 chi Found Laureate SCO Earth Fenay Comma EstbihedAEON Group Eatonton reset AEON Eneronmeral Fudan) Lured Aeon Hortons Frese Progam usa Saran Keng psu Aten tres og Kang ten te Hen Kong St aj ssc tres sey fecal ten te Kul Lumg Stee Esrane 2001 _Jusco becoming Aeon use, is ese nC, adhe Gop rae changed een Stared Aeon Happ Yolo ect Campin ‘2c Co, adopted te cansany wi conmtee syste om company wth nonin commie nd ate coms Lured WAONe-meny card tom Sant he ote Go's shared unens nt separ compaies, lg Aon Top Cit ‘aca Co, Li ted to pu tléngconpeystute Formule te Aeon Manteo onthe Prveten ot bl Wang Forme te Aeon Secret Pree 2011~ Aiming to Become Global Top 10 Dmehes ten Sitainaily Pele Started Aon Eo Prot Bcc sit Asan mar srg Wh a street ane Canboda, Formate te Aen Sita Pocromet Poly an usable Procurement of 2020 Seton Gaus Food Waste Recon Targets Formule ass OseartenzatnVsn 2080 Contd asta puters arent wth Octo Slits, UK 2020~ Aiming tor Business Growth to Enrich the Community EL straint nae harman yess xeue eet, Preset ard erste Fermutsos te Reon CMD Paeolernctou Dest Conta Fermutsos te hon Paste Uap Paley REI. Forrest Mesure Managerst Plan for 12021 2025 AEON CO.,LTD. ¥ Headquarters: 1-5-1 Nekase, Mihama-ku, Chibe-shi, Chi 261-8818, Japan 4. ‘Website: htipsv/ww.aoon.infofond