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FY 2013 1st Half
Presentation Material
October 7, 2013AEON CO., LTD.
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FY 2013 1st Half Financial Results
Marked Record-High for Operating Revenue, and Achieved Operating Income Increase
(Unit: bil. yen)FY 20121st Half
FY 2013 1st Half
YoY Change
Operating revenue 2,727.8 2,981.8 +9.3%
Operating income 72.6 73.7 +1.0
Ordinary income 82.4 77.0 ▲5.3
Net income 28.0 23.5 ▲4.4
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Business Segment Information
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Operating revenue Operating income
(Unit: bil. yen)FY 20131st Half
YoY Change(%)
FY 20131st Half
YoY Change(Yen)
GMS 1,325.5 +3.5% 11.0 +3.2SM 771.1 +7.9% 3.6 -6.0Strategic Small Size Store 135.5 +16.9% 2.4 -0.7Financial Service 132.6 +50.2% 14.7 +1.7Shopping Center Development 106.4 +8.8% 19.9 +0.4Service 202.4 +16.0% 11.6 +1.7Specialty Store 172.6 +6.2% 3.5 +0.5ASEAN 86.7 +94.6% 3.0 +0.4China 69.2 +21.6% -1.5 -1.8
Consolidated total 2,981.8 +9.3% 73.7 +1.0
GMS, Financial Service and SC Development Contributed to the Consolidated Business Results
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Apparent Recovery Trend Resulted from GMS Business Reformation
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Operating income
GMS: Aeon Retail "the 1st Half"
FY 2012 1st Half
Increased byIncreased by
3.33.3bil. yenbil. yen4.2
FY 20131st Half
7.5bil. yen bil. yen
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GMS: Aeon Retail "Refurbishment of existing stores"
Improved Performance of Existing Stores by Aggressive Refurbishment
Current status of the refurbished stores
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【Aeon Kasai】
【Aeon Itabashi】
+14%
YoY
+19%After refurbishment:
Same Store Sales Growth
YoY
After refurbishment:
Same Store Sales Growth
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GMS: Aeon Retail "Specialization of Sales Floor"
Improvement in Service Level by Fostering Employee with Specialist Capabilities
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Growing Member of Specialists
FY 2013 1st Half FY 2010+12%
Liquor AdvisorsLiquor Advisors
Bike advisorsBike advisors
546 1047Sales of bikesYoY
+8%FY 2010
172 399FY 2013 1st Half
Sales of wineYoY
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The Ratio of Aeon’s Private Brand “TopValu” Sales to Total Revenue Grew Up to Approximately 20%
The Trend of Top Valu Products sales & The Ratio of Top Valu Sales to Total Revenue
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GMS: Aeon Retail “Raising PB ratios"
0
(Unit: (%))
FY 20091st Half
FY 20101st Half
FY 20111st Half
FY 20121st Half
FY 20131st Half
(Unit: in bil. yen)
0
Line chartTop ValuSales Ratio
Bar ChartSales of Top Value Products
9.149.14 9.189.18 11.4811.48 16.6116.61 18.0218.02
12.612.6%% 13.313.3%% 12.912.9%%
18.818.8%%
19.819.8%%
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Aeon’s Brand "TopValu"
Enhanced Product Lines of “SELECT” & “BESTPRICE”, Meeting the Customer Needs, Effectively Worked
SELECT BESTPRICE
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+70 +20Sales Results(YoY growth)% %
Sales Results(YoY growth)
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GMS: Aeon Retail “Strengthening the competitiveness"
Strengthening the Competitiveness as a Retailer by the Introduction of a New Project, “Uriba-no-Chikara * Project"
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“Uriba no Chikara * Project"
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GMS: Aeon Retail “Same Store Sales"
Same Store Sales of Aeon Retail Has Been Above the Industry Average
【Comparison: Same Store Sales YoY growth】
Source: Japan Chain Stores Association (JCSA) 10
(%)
0.1
2013年3月 2013年4月 2013年5月 2013年6月 2013年7月 2013年8月
2.9
AeonAeon RetailRetail
JCSAJCSA
Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013
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GMS: Aeon Retail “Gross Margin”
The Improvement of Private Brand Ratio etc. Contributed to the Increase in Gross Margin
Change in Gross Margin (%)
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Change in Gross margin (%)
FY 20122Q
FY 20123Q
FY 20124Q
FY 20131Q
FY 20132Q
Apparel ▲1.4 +0.4 +0.8 +0.1 +0.3
Food ▲0.2 ▲0.3 ▲0.4 ▲0.4 +0.0
Household ▲0.1 ▲0.5 +0.1 ▲0.1 +0.6
Total ▲0.4 ▲0.2 ▲0.1 ▲0.3 +0.1
【YoY】
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SC Development Business: Aeon Mall
Enhancing the Profitability by Newly DevelopedConceptual Malls and the Refurbishment of the Existing Malls
Refurbishment of 8 existing malls in Japan
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Aeon Mall Tsukuba
Aeon Mall Kasukabe
3 new SCs in Japan(including 1 Poperty Management)
Aeon MallShimoda
Aeon MallTakasaki
Aeon MallMusashi Murayama
Aeon MallTsurumi Ryokuchi
Aeon MallKobe-kita
Aeon MallNatori
Aeon MallOhta
Aeon MallKochi
The effect of refurbishment (1The effect of refurbishment (1stst half)half)::
Same Store Sales GrowthSame Store Sales Growth 55%% Up Up ((YoYYoY))
Concept: one big leisure zone for pursuit of fun•Bakery & restaurant w/ dog-run ground and dog cafe•Specialty stores for travel trailers and outdoor goods
Concept: Provision of new life style•Reinforced service functions such as clinics, bank, credit
and insurance•Hobbies & culture learning zone
Refurbished malls:
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SC Development Business: Aeon Mall
Enhancing Growth Potential by New Store Opening
New market in overseas
1st store in Cambodia
1st store in Indonesia
1st store in Vietnam
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・ Maximized pursuit of the services for new events・ Next generation of shopping mall, which
consists of 4 different type of conceptual malls
Aeon Makuhari Shintoshin store:
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Financial service business: Aeon Financial Service
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Steadily Growth in Business Operation by Management Integration
① Outstanding Balance of loan receivable (Cash Advance), ② # of Installed ATM Machines,③ # of In-Store Branches
Mar 2013
Apr 2013
May 2013
Jun 2013
Jul 2013
Aug 2013
220.0
(Unit: in bil. yen) 274.2
③ # of In-store branches
① Outstanding Balance of cashing ② # of installed ATM machines
2,449 3,654
100 113stores
ATMs
stores
as of Aug 2013as of Mar 2013
ATMs
as of Mar 2013 as of Aug 2013
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ASEAN business
“Aeon Malaysia” and “Aeon Big Malaysia“ Contributed to ASEAN Business
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Kluang Store of Aeon Big
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ASEAN business
Accelerated Growth with the Created Synergy in Aeon Group
Kepong store of Aeon Big
+1.7%
① Same Store Sales(YoY)
② Gross Margin
16
-10%
Before acquisition After acquisition
18.4%15.9%
Before acquisition After acquisition
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Current Status of Daiei
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Actions for the improvement of Daiei’s business
Seeking Early Improvement in Daiei’s Business Performance Fully Utilizing the Management Resources of Aeon Group
•• The exchange of top management/management/employees The exchange of top management/management/employees betbetween ween AeonAeon and Daieiand Daiei
•• Utilization of the groupUtilization of the group--infrastructure, including the introduction infrastructure, including the introduction of Topof Top--Value and knowValue and know--how of Origin TOSHU Co., Ltdhow of Origin TOSHU Co., Ltd
•• Utilization of Utilization of AeonAeon GroupGroup’’s financial infrastructure, and s financial infrastructure, and the reductiothe reduction in financing costn in financing cost
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HRHR
ProductsProducts
Financial Financial ServiceService
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【Higashi Mukoujima Ekimae store】
+30% over
Monthly Sales (YoY)
Actions for the improvement of Daiei’s business
Current Performance shows Gradual Recovery by promoting refurbishment
Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013
+1.6%
0%
Daiei:
Monthly Sales (YoY)
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Current Financial Condition and Outlook
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Full-scale operation of REIT business
Achieve both Future Growth and financial strength by diversifying the financing method
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AeonAeon REITREIT
Investment in commercial properties
with competitive edge
Investment in commercial properties
with competitive edgeImprovement of capital efficiency
Improvement of capital efficiency
Further growthFurther growth
Acquisition of stable and sustainable properties
Acquisition of stable and sustainable propertiesDiversification
of the financing method
Diversification of the financing method
WinWin--Win relationshipWin relationship
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Interest-bearing debts (consolidated)
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Overseas
Japan
Control DE ratio at 0.9 times or less (excluding financial business)
2/2013Actual
2/2014Budget
2/2015Target
2/2016Target
Int. bearingdebts of financial business
Int. bearing debts exceptfinancial business
DE ratio(exc. Financial)
Int. bearing debts/EBITDA X
7,180億円 ¥ 550
bil. or less
¥ 920.9bil.
¥1 tri. or less
4.9X
0.9X
Approx.4.0X
Approx. 0.9X
4.0X or less
0.9X or less
8/2013Actual
-
0.9X
¥ 580bil.
¥ 942.6bil.
¥ 718bil.
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Performance Outlook for FY 2013 (consolidated)
Seeking the record-high in all levels
(Unit: bil. yen)2/2013Actual
2/2014Forecast
YoY
Operating revenue 5,685.3 bil. yen 6,000 bil. yen 105.5%
Operating income 190.9 bil. yen 200~210 bil. yen +9~19 bil. yen
Ordinary income 212.9 bil. yen 215~225 bil. yen +2~12 bil. yen
Net income 74.6 bil. yen 75 bil. yen +0.3 bil. yen
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Disclaimer
• This presentation material prepared to provide the information only, not to trigger any action based on the information in the material. This material (including financial performance forecast) are created based on the information which is reliable and obtainable at this point. However, it contains the risks and unpredictable factors, and Aeon Co., Ltd. (Aeon) is not responsible for the correctness and completeness of thematerial at all.
• Please use the material in the judgment of yourself. Aeon is not responsible for any possible loss caused by your investment fully relying on the forecast, targets, figures, etc. shown in the material.
• Aeon holds the copyright of this presentation material. Aeon prohibits a duplication and/or distribution of this material without permission for any reason.
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