#1FY2021 Presentation Materials Copyright 2022 AEON CO., LTD. All Rights Reserved. EON April 8, 2022#2Overview of FY2021 Financial Results EON 1 Copyright 2022 AEON CO., LTD. All Rights Reserved.#3Consolidated Results /EON • Increased revenue and profit with a record-high operating revenue of over 8.7 trillion yen. ⚫Profit attributable to owners of parent improved sharply with a profit increase of 77.5 billion yen and returned to the black. (billion yen) FY2020 Results FY2021 Results YOY %/change Operating Revenue 8,603.9 8,715.9 +1.3% Operating Profit 150.5 174.3 +23.7 Ordinary Profit 138.8 167.0 +28.2 Profit attributable to -71.0 6.5 +77.5 owners of parent Copyright 2022 AEON CO., LTD. All Rights Reserved. 2#4Results by Segment (Operating Revenue) EON •Health & Wellness, Shopping Center Development and Services and Specialty Store businesses contributed to increase revenue. •Revenue of SM and DS businesses exceeded FY2019, prior to the COVID-19 pandemic. 【Operating Revenue by Segment) (billion yen, %) Operating Revenue YoY % vs. FY2019 % Consolidated Total Health & Wellness 8,715.9 +1.3 +1.3 1,031.0 +7.8 +17.3 Growth strategy succeeded Shopping Center 366.7 +12.1 -1.4 Development Recovery trend from the impact of Services and Specialty Store 703.4 +9.6 -5.4 COVID-19 Discount Store (DS) 388.1 -2.3 +15.9 Captured dine-in demand Supermarket (SM) 2,520.6 -1.1 +2.0 International 412.2 -0.5 -6.1 General Merchandising Implemented Store (GMS) 3,300.4 -1.8 -5.4 initiatives to improve profitability Financial Services 472.5 -3.1 -2.5 Copyright 2022 AEON CO., LTD. All Rights Reserved. YoY and vs. FY2019 % of GMS, SM and DS adjusted for business integration and segment changes. 3#5/EON Results by Segment (Operating Profit) ⚫Five businesses improved profitability. Financial Services business and GMS business significantly improved by various initiatives to improve profitability. . • Profit of SM and DS businesses exceeded FY2019, prior to the COVID-19 pandemic. 【Operating Profit by Segment) (billion yen, %) Operating Profit YOY change vs. FY2019 change Consolidated Total 174.3 +23.7 -41.2 Success of growth Health & Wellness 41.9 +0.3 +6.2 strategy Financial Services 61.7 +19.1 -8.6 General Merchandising Improved by various initiatives Store (GMS) -2.3 +8.7 -14.5 Services and Specialty -2.7 +14.9 -7.2 Store Shopping Center Improved by a recovery in sales 38.8 +3.1 -24.4 Development Discount Store (DS) 2.7 -1.7 +2.6 Exceeded the level prior to the COVID-19 Supermarket (SM) 30.5 -11.1 +14.0 International 5.5 -0.4 -5.1 Impact of lockdowns overseas Copyright 2022 AEON CO., LTD. All Rights Reserved. YoY and vs. FY2019 % of GMS, SM and DS adjusted for business integration and segment changes.#6Quarterly trends in operating profit /EON ⚫Seven businesses increased profit or reduced profit decline in the fourth quarter. Profit recovered to growth of 2.5 billion yen. 【Operating Profit YoY change) * (billion yen) •Sales increased by recovering the dropout of special demand ⚫Downturn in 3Q caused by the dropout of +4.3 positive impacts of blockbuster movie title in last year +2.0 Lockdowns were eased in 4Q • Recovered from last year decline of special demand and cut costs Trend Business 1Q 2Q 3Q 4Q Growth Heath & -2.9 -0.4 +0.5 +3.1 continued Wellness Services and +10.7 +2.5 -2.7 Specialty Store Turned to improve International +0.7 -0.1 -3.0 SM -10.2 -1.6 -1.7 +2.4 Development +7.9 -1.0 -2.4 Reduced profit Financial +22.7 +3.6 -6.0 -1.2 decline GMS +24.6 -8.5 -5.6 -1.5 •Improvements in gross profit margin and cost control Flat DS -1.1 -0.5 +0.0 -0.1 •Minimized impacts of the dropout of special demand in last year Consolidated +51.7 -7.8 -22.7 +2.5 Profit recovered to growth -1.2 ASEAN got better than 3Q • Increased in gains on the securitization of receivables Copyright 2022 AEON CO., LTD. All Rights Reserved. LO 5#7GMS Business (AEON Retail) /EON ⚫Gross operating profit rose ¥19.2 billion, thanks to higher sales in the food category and improvement in the gross profit margin in the apparel category. • Expenses reduced compared to FY2019, prior to the COVID-19 pandemic. 【Operational Profit YoY change】 (Excluding the impact of the transfer of the product procurement division and the Tohoku business.) Operating Profit •Same-store sales Gross Profit Margin YoY % YoY change YoY change Gross Operating Profit ⚫Composition ratio of sales 100% YoY change 80% Food 63% 101.7% ±0.0 pt. +19.2 60% +13.7 billion yen 40% billion yen Apparel 16% 100.3% +1.7 pt. 20% H&BC 12% Home furnishing 8% 99.1% +0.9 pt. 91.3% +3.2 pt. 0% āt 100.3% +0.6 pt. Expenses YoY change +5.5 billion yen Copyright 2022 AEON CO., LTD. All Rights Reserved. vs. FY2019 change – 15.5 billion yen CO 6#8Financial Services, Services and Specialty Store, Shopping Center Development Businesses Operational Profit Business Segment YoY change EON Financial Services Services and Specialty Store +19.1 billion yen +14.9 billion yen +3.1 Shopping Center Development billion yen • Business Situation • Bad Debt Expenses YoY change ¥-21.6 billion Improvement in the non-performing loan ratio due to persistent efforts to refine the credit screening process and strengthen the collection of receivables. •Gained active members with the use of WAON Points. The Number of active credit card holders in Japan surpassing 30 million. ⚫Profit improved sharply at companies with operations recovering from the widespread temporary closures in the previous fiscal year (Operating Profit YoY change) AEON Mall G-Foot +¥5.5 billion, AEON Fantasy +¥4.0 billion, Mega Sports +\2.0 billion AEON ENTERTAINMENT +\0.9 billion. Operating Profit increased in China (+¥4.6 billion), Japan (+¥1.3 billion) • Tenant sales in the same mall in China increased. Tenant Sales YoY 132.0%, vs. FY2019 105.3% •New Malls: Japan (4), Overseas (2) Copyright 2022 AEON CO., LTD. All Rights Reserved. 7#9Health & Wellness, International, SM, DS Businesses Business Segment Operational Profit YoY change Business Situation EON Health & Wellness International 5535 SM DS +0.3 billion yen (vs. FY2019 change +6.2 billion yen) -0.4 billion yen -12.8 Billion yen (vs. FY 2019 change +16.7 billion yen) Welcia ⚫Drugstores capable of processing prescriptions 1,839 stores (Japan) (vs. plan +55 stores) • 142 stores opened (Japan) (vs. plan +21 stores) •Made Pupule Himawari a subsidiary in Dec. 2021. • Plan to make Kokumin a subsidiary in June 2022. • Operating profit by Area, YoY change China 1.0 billion, ASEAN +\ 0.2 billion * Adjustment + \ 0.2 billion •Impacted by the expansion of areas with COVID-19 restrictions in China and the easing of restrictions on eating and drinking establishments in Hong Kong. ⚫Profit increased compared to the level before COVID-19 by responding to dine-in demand. ⚫Diversified sales ways; online supermarket shopping, online delivery etc., to meet new needs of customers. •Opening stores in collaboration with WELCIA ⚫MINISTOP pulled out of the business in South Korea and the Philippines. Copyright 2022 AEON CO., LTD. All Rights Reserved. 8#10Recent sales trend /EON •Sales in the apparel category of GMS, Services and Specialty Stores and tenants for Shopping Center Development were suffered by the rapid spread of the Omicron variant but in recovery trend recently. . • Food sales have remained generally flat year on year, with capturing dine-in demand. (YoY % same-store sales) 140 120 100 GMS (Apparel) Services and Specialty Stores Shopping Center Development 80 11/2912/6~ 12/13~12/20~12/27~ 1/3~ 1/10~ 1/17~ 1/24~ 1/31~ 2/7~ 2/14~ 2/21~ 2/28~ 3/7~ 3/14~ 3/21~ 3/28~ 110 100 90 80 Copyright 2022 AEON CO., LTD. All Rights Reserved. FY2021 4Q Last year: 1/8~3/21 State of emergency This year: 1/9~3/21 Priority measures to prevent the spread GMS (Food) SM FY2022 1Q 9#11Copyright 2022 AEON CO., LTD. All Rights Reserved. FY2022 Forecast EON 10#12Scenario concerning the impact of COVID-19 /EON ⚫Premising that the government will not declare a state of emergency. 【Scenario concerning the impact of COVID-19 (Japan)】 1 Q 2Q 3Q 4Q Priority measures to prevent the spread Completed third vaccination shot for the elderly Third vaccination shot progresses Started distribution of therapeutic drugs Decreasing in Apr. No state of emergency declared Go To Travel campaign Priority measures to prevent the spread New variant Vaccination possible at any time Therapeutic drugs become widely available Peaking out Number of COVID-19 cases Mar. Pre-pandemic levels Image of Consumer Sentiment Jun. Sep. Dec. Recovering to pre-pandemic levels, then decline again for some period. Copyright 2022 AEON CO., LTD. All Rights Reserved. 11#13Fiscal 2022 Forecast /EON • Planning to increase revenue and profit. Operating Revenue will be 9 trillion yen and profits at each line will exceed the level prior to the COVID-19 pandemic. ⚫All business segments will increase profit. GMS and Services and Specialty Store will return to profitability. ⚫Forecasting profits with taking into consideration the uncertainty with the supply chain. 【FY2022 Forecast] (billion yen) FY2019 FY2020 FY2021 FY2022 (Forecast) YOY %/change Operating Revenue 8,604.2 8,603.9 8,715.9 9,000.0 ( 9,200.0*) (+5.6%) Operating 210.0 +35.6 215.5 150.5 174.3 Profit ~220.0 ~45.6 205.8 Ordinary Profit Profit attributable to owners of parent 26.8 -71.0 6.5 200.0 +32.9 138.8 167.0 ~210.0 ~+42.9 25.0 +18.4 ~30.0 ~+23.4 Copyright 2022 AEON CO., LTD. All Rights Reserved. *As AEON will apply the "Accounting Standard for Revenue Recognition" effective form FY2022, it applied to the figures. For reference, without the application of the said standard the forecast for operating revenue would be ¥9.2 trillion (YoY change would be 5.6%). 12#14Breakdown Investment Plan EON • Planning to mainly invest in growth areas, such as the opening of new stores in Vietnam, the next-generation online supermarket that is opening in 2023, self-checkout registers, distribution centers for SM; and so on. Average in previous mid- term business plan FY2021 (Result) FY2022 (Plan) Average in present mid- term business plan Total investment 450.0 400.0 450.8 352.5 amount ~500.0 ~450.0 (billion yen) Stores 71% 58% 40% 40% (Japan) Stores 13% 16% 30% 25% (Overseas) Digital Logistics 16% 26% 30% 35% Copyright 2022 AEON CO., LTD. All Rights Reserved. 13#15Forecast of Dividend Payment /EON Expected dividend of ¥ 36 per share at the previous year's level. FY2021 FY2022 (Forecast) End of second quarter Ordinary Dividend 18 yen Ordinary Dividend 18 yen Year-end Ordinary Dividend 18 yen Ordinary Dividend 18 yen Total Ordinary Dividend 36 yen Ordinary Dividend 36 yen Copyright 2022 AEON CO., LTD. All Rights Reserved. 14#16/EON Copyright 2022 AEON CO., LTD. All Rights Reserved. EON#17FY2021~FY2025 Medium-term Management Plan: First-year Progress Copyright 2022 AEON CO., LTD. All Rights Reserved. AEON Co., Ltd. EON April 8, 2022#18Summary of main Medium-term Management Plan initiatives Growth Strategy 1 2 • Group app iAEON Acceleration and evolution of the digital shift Standardization of WAON Points and launch of Various initiatives aimed at enhancing convenience, such as online supermarket services and the Regi Go system Establishment of unique value by supply chain Sales expansion initiatives for private brand products responding to consumer needs, such as the price freeze on Topvalu brand products Promotion of in-house private-brand product development with focus on the food category /EON ¥ 130 Digital (Online) billion Sales (FY2019 ¥ 70 billion) Private- brand Products Sales \ 1.2 trillion (FY2019 ¥ 1.0 trillion) 3 4 Advancement of Health & Wellness for a new era Creation of the AEON Living Zone 5 Further acceleration of the Asian shift Expansion of the drug business, including M&As Achieved WELCIA • Rollout of health-enhancing products and services Holdins' \ 1.0 Sales trillion Management integrations in the Tohoku, Chugoku, and Shikoku regions Various initiatives aimed at building regional hubs Expansion of online delivery services Expansion of multi-format store network Completion of the "regional shift" Weighting of overseas 22% operating profit (FY2019 20%) + Structural reforms Copyright 2022 AEON CO., LTD. All Rights Reserved. • • Further promotion of AEON Retail's structural reforms Initiatives aimed at business restructuring (Ministop, G-Foot, etc.) Retail business operating 44% profit weighting (FY2019 35%)#19Acceleration and evolution of our "digital shift" (overview of initiatives) Direction EON - Build a new customer-focused ecosystem leveraging technology to enable a shift from focusing on brick-and-mortar stores and product sales to the provision of seamless experiences integrating store-based and online retail formats - Create new earnings model based on Group-wide data sharing and construction of data infrastructure and also transform existing operations by leveraging data and AI Main Initiatives Key measures Accelerating the digital business Measures to implement • Expand e-commerce, online supermarket, and omnichannel sales • Build next-generation e-commerce platform with Ocado Digitalization of store, HQ work Development common digital infrastructure Improve customer experience through self-checkout, etc. Improve efficiency of store operations Improve efficiency by reviewing workflow and leveraging digital technology Personalize sales promotion through apps and loyalty programs Create new revenue sources such as through advertising by utilizing customer data Improve profit margins through data integration and data infrastructure development Copyright 2022 AEON CO., LTD. All Rights Reserved. 2#20Rapid growth of the online supermarket business /EON Offline versus Online: Growth comparison over the last three years Average annual growth rate of offline store food sales +2.4% Average annual growth rate of online supermarket sales + 35.1% FY2019 FY2020 FY2021 FY2019 FY2020 FY2021 Copyright 2022 AEON CO., LTD. All Rights Reserved. Sales exceeded 75 billion yen 3#21Growth potential for Japan's online supermarket market EON Online supermarket weighting in food sales in more digitally advanced countries (Partly estimated) 27.9 Japan 3.3% (FY2020) 22.7 18.5 15.0 21.5 19.1 16.9 12.0 14.6 10.0 8.0 10.2 12.5 2.7 3.4 2018 19 20 21 Source: Statista, Mercatus, Ministry of Economy, Trade and Industry Copyright 2022 AEON CO., LTD. All Rights Reserved. 22 22 23 24 24 2025 34.3% China -U.S.A.#22Store digitalization initiatives (Japan) Enhancements to both customer convenience and productivity EON Scan & Goo Smart Shopping チェックイン レジ ゴー + • • Available at more than 500 stores (rolled out to all Kasumi and Maruetsu stores) Utilization rate above 16% at BLANDE stores 18% utilization rate at participating stores Roughly 20% more spending per customer with 3 more purchased items compared to self-checkout The switch to 100% self-checkout and other such reforms continue to be implemented by Group companies Pioneering industry solutions as a retailer-turned-tech firm Retailtech Japan 2022 ignica SM.H anies POS 0000 リテールテックJAPAN ignica ignica U.S.M.H Ignition inr cultural life 123PAR FALS UNIC d. RT1610 Scan On ignica ignic Digital IC Signage ignica ignica Orline Delivery ionice U.S.M.H Our booth was favorably received and visited by many firms, including retailers (around 20) and POS vendors Copyright 2022 AEON CO., LTD. All Rights Reserved.#23Store digitalization initiatives (China) Benefits from initiatives in China * EON • • . 11% online supermarket sales weighting Freeing up of 90,000 labor- hours with use of in-house- developed operations app Improved stockout control with inventory visualization Stockout rate: 1.4% 0.8% Speedy rollout of best practices in China to Japan 9:41 AM $100 % 1 朝北大悦城店 (00001)~ Q 按商品(编码、条码、品名)或分类查询 首页 实时看板 早间哲板 上周反省 上月 19 业绩趋势 TV品业绩: L 分类业绩 促销期业绩 BRE 线上销售 店横对比 实时速报截止19:30) $8 10/20 88-7/20 销售额(元) 78,623 187 W 600 500 300 200 预算比 102.3% 预算差(元) +8,623 Main management items Sales 特别日业绩 VS 更多> 时间 -O-** ○- 上月〇当月 Budget Progress Sales Quantity Number of Customers Product display/inventory • 94% cashless weighting (82% smartphone payments) م Worker attendance Shifting staff to new value-added operations as a result of increased productivity Copyright 2022 AEON CO., LTD. All Rights Reserved.#24Development of shared digital infrastructure EON Expanding customer touchpoints with use of WAON points Use of data and AI Monthly trend in price markdowns and product disposal rate Aeon Retail data for cooked ready-to-eat meals Estimated yearly points issuance Group-wide growth measures and increase in participating stores 100bn points 13.8 -1.8ppt 12.1 9 10 11 12 1 2 T points P points WAON Group companies are pushing ahead with AI and data-driven initiatives Copyright 2022 AEON CO., LTD. All Rights Reserved. 7#25Creating unique value with a supply chain-focused approach (overview of measures) Direction EON -Shift from serving as an intermediary and making proposals for products already on the market to creating and proposing unique values that only AEON can offer -Make all-out Group-wide effort to create unique values by drawing not only on the Topvalu brand but also on the expertise of employees in each business format and region-specific values Main Initiatives Key Measures Create and propose unique private brand (PB) products Establish the Group's food hub function Supply chain optimization Expansion of demand aggregation for national brand(NB) products Measures to implement Expand PB products (Topvalu, Local PB, Specialty PB) Strengthen menu development function and production capacity of food processing centers to supply products across businesses 7-step supply chain optimization Planning and Product Sourcing and Upstream Strategy Supply chain Demand Inventory Warehouse Transport Forecasting Mgt. Mgt. Mgt. Sales Aggregate demand for NB products by AEON GLOBAL MERCHANDISING Copyright 2022 AEON CO., LTD. All Rights Reserved. 8#26Promoting the value of our private-brand products ÆON Sharp price increases Skyrocketing raw materials prices (Jan 2021 indexed as 100) Topvalu product prices unchanged since September 2021 |T0PYALU 今こそ、お客さまの暮らしを応援 ~イオンは、今こそ企業努力が必要な時と考えます~ トップバリュは、 食料品・日用品 約5,000品目の価格を 本年6月30日まで値上げしません 152% Canola 135% oil Data for Sep 2021 to Feb 2022 Wheat 1 2 2022 Main Topvalu food categories Net sales Net sales weighting up 15% YOY 20% +3ppt YoY 100% 1 2 3 4 5 6 7 8 9 10 11 12 2021 Source: World Bank Copyright 2022 AEON CO., LTD. All Rights Reserved.#27Topvalu re-branding Transforming the Topvalu brand by delivering new value /EON "Premium Draught Beer" went on sale on March 8, 2022 QUALITY AND TRUST TO PVALU トップバリュ QUALITY AND TRUST TOP VALU グリーンアイ New value-creation brand that continues to offer solutions for customer lifestyles Organic and natural ingredient- focused brand that pursues environmental sustainability in line with AEON's own standards TO P VALU 明日をハッピーにする プレミアム。 OPVALU プレミアム Premium 生ビール 100% ピルスナー お酒 360ml) Change in Topvalu brand composition in beer category QUALITY AND TRUST TOP VALU BESTPRICE トップバリュベストプライス Discount brand that aims to deliver a level of satisfaction and quality that equals or exceeds the top brands, as well as aiming for the best regional prices T O P VALU BESTPRICE トップバリュベストプライス FY21 Copyright 2022 AEON CO., LTD. All Rights Reserved. | T O P VALU BESTPRICE |トップバリュベストプライス QUALITY AND TRUST TOP VALU トップバリュ Result for March FY22 10#28In-house development of private-brand products (food) /EON Revamping infrastructure nationwide with a view to further developing fresh produce and delicatessen products Hokkaido Tohoku Kanto Tokai Nishi nihon Kyushu Apr 2021: Ishikari processing center up and running Starting work on processing center framework Expanding current processing center functions + working on next-generation processing center framework Installation of automated food dishing robots to further boost productivity June 2021: Start of construction of Okayama general processing center Enhancing fresh foods and micro processing center Example of processing center utilization: Creation of the No. 1 product in the cooked ready-to-eat meal category そこまでやるか! 新 唐 揚 唐主 からおう YoY comparison of monthly gross profit from "Karao" fried chicken 200 100 AEON Retail data Copyright 2022 AEON CO., LTD. All Rights Reserved. 0 % / month 3456789 10 11 12 1 2 11#29Creating the "AEON Living Zone" (overview of initiatives) ON Direction -Construct the AEON Living Zone rooted in their respective communities combining multi-format store networks and businesses with digital infrastructure -Continually contribute to local communities through business activities, while augmenting the kinds of necessary services and social capital that each community is lacking in Main Initiatives Provide products, services, and infrastructure to help enrich people's lifestyles -Provide community-rooted products, services, and lifestyle infrastructure as the next step in the shift to regional markets -Create bases to form the core of the Living Zone that supplement social capital needed in each community -Construct digital infrastructure for the Living Zone by increasing the number of app users and expanding the cashless payment network Copyright 2022 AEON CO., LTD. All Rights Reserved. 12#30Progress on "regional shift" Aiming to be the number one group in each region 【Mar 2020】 • ⚫ Daiei • Kohyo 【Mar 2022] • Fuji •Maxvalu Nishinihon 【Sep 2020】 ⚫ AEON Kyushu •Maxvalu Kyushu • AEON Store Kyushu J Chu- Shikoku Kinki Tokai Kyushu Copyright 2022 AEON CO., LTD. All Rights Reserved. EON Hokkaido 【Mar 2020】 AEON Hokkaido • Maxvalu Hokkaido Tohoku 【Sep 2021] Maxvalu Tohoku AEON Retail Tohoku Company 【Sep 2019】 •Maxvalu Tokai •Maxvalu Chubu 13#31Progress on "regional shift" Strengthening management platform through "regional shift" MaxValu MaxValu Maxvalu Tokai Operating profit 19 20 Upward revision Initial target FY21 Brisk earnings due to integration effects Copyright 2022 AEON CO., LTD. All Rights Reserved. EON Key measures in FY2022 aimed at further growth Smart 毎日の食事を楽しく chanto GOHAN ちゃんとごはん Productivity enhancements (operational reforms) Strengthening product appeal (scale + development capabilities) MaxValu Development of new formats (e.g. staffless stores) Maximization of store know-how (store openings, rebuilding, administration, etc.) Endeavor to further enhance value provided by leveraging integration benefits 14#32Towards creating of the "AEON Living Zone" Promoting the building of regional hubs EON MALL Change of profit structures Anchor Store EON Office areas An office/retail commercial facility AEON MALL Nagoya Noritake Garden (Oct. 2021) Tenants Existing Malls Nagoya Noritake Garden Change in sales composition BLANDE KASUMA Welcia A new format that creates connections U.S.M.H.(Kasumi) BLANDE Tsukuba Namiki Store (Jan. 2022) Copyright 2022 AEON CO., LTD. All Rights Reserved. Fresh produce Glossary. • Daily food Delicate ssen Average of existing SM stores BLANDE 15#33Towards creating of the AEON Living Zone Welcia's business growth welcia Welcia Holdings First in drugstore industry to reach sales of ¥1.0 trillion Sales CAGR +10% 17 18 19 20 20 Stores 1,693 Copyright 2022 AEON CO., LTD. All Rights Reserved. ¥1trn 2021 FY 2,468 EON Key measures in FY2022 aimed at further growth P お薬 DICK DOOR 受け取り Expansion of drugstores capable of processing prescriptions Target: 78% ロッカー welcia Preparing for digital transformation of drug dispensing Collection lockers at more than 260 stores からだ Welcia welcia ウエルシア Expansion of brick-and-mortar stores Target for new store openings: Approx. 130 くらしWelcia Strengthening proprietary products Target for private brand weighting: At least 8% Increasing number of health centers in each region 16#34Outlook for Shopping Center Development & Services and Specialty Store businesses Targeting a return to a steadfast growth trajectory Both sales and customer traffic are improving as COVID-19 infections decline 140 120 YOY same- store 100 sales Number 80 of new 10 COVID- 19 cases in Japan 5 (Daily; unit: 10,000 0 people) Dec Services & Specialty Store Shopping Center Development Jan Feb Mar + A AEON CINI Period when priority measures for preventing spread of COVID-19 were in force Aeon Fantasy EON Anticipating further earnings growth potential Structural distribution issues caused by COVID-19 now resolved Targeting around 850 titles, nearly the same level as in FY19 (+10% YoY) Increase in blockbusters expected to make more than ¥1.0bn at the box office Expecting roughly double that of FY20 (about 70 titles) Expansion of online business impervious to effects of COVID-19 - Expansion of online claw machine game Molly Online (+39% YoY) Plans for integration with Group app iAEON Expansion of operating area with strategic small-scale stores Launch of a business model to quickly open highly profitable, space-saving stores Expansion of dedicated capsule toy stores (85 as of end-FY21) Copyright 2022 AEON CO., LTD. All Rights Reserved. 17#35AEON Basic Principles /EON Pursuing peace, respecting humanity, and contributing to local communities, always with the customer's point of view as its core. Peace The Customer Peace : AEON is a corporate group whose operations are dedicated to the pursuit of peace through prosperity. People : AEON is a corporate group that respects human dignity and values personal relationships. Community: AEON is a corporate group rooted in local community life and dedicated to making a continuing contribution to the community. People Community On the basis of the AEON Basic Principles, AEON practices its "Customer-First" philosophy with its ever-lasting innovative spirit. Copyright 2022 AEON CO., LTD. All Rights Reserved. 18#36Conclusion AEON Based on the AEON Basic Principles, AEON is opposed to warfare イオンは戦争に反対します イオン ウクライナ 子ども救援募金 何もないウクライナの子どもたちはき込まれ 家を なくされ ており ません。一日も早く、ウクライナ の子どもたちが安心して暮らせる日々がることを願い 『イオンウクライナ子ども教募金」を実施いたします。 皆さまのかいご支援ご協力お願い 贈呈先:日本ユニセフ協会 実施期間:3月31日(木)まで 当店の募金箱設置場所: 1階サービスカウンター 1階各直営レジ 2階各直営レジ Copyright 2022 AEON CO., LTD. All Rights Reserved. ACON イオン ウクライ イオンは戦争に反対します イオンウクライナ子ども救援募金 クライナの子どもたちは、争いに巻き込まれ、 なくされて 00001000 計り知れません。一日も早く、ウクライナの 安心して暮らせる日々が戻ることを願い 「イオンいたします。 サービスカウンター FILY イオンの イオン銀行 口座 活用した グループの他、下記サイトからも まの温かいご支援を心よりお願い申し上げます。 イオンカード およびイオンカードに たまったポイント 活用し 支援基金 父の日 WAON POINT 活用した 支援募金 イオンは戦争に反対します イオン ウクライナ 子ども救援募金 ウェブサイトをご確認ください。 実施期間:3月31日(木)まで 先日本ユニセフ協会 ON サービスカウンタ AEON Karatsu, AEON Kyushu 19#37Copyright 2022 AEON CO., LTD. All Rights Reserved. EON EON#38(Reference) Results of important initiatives by AEON Retail EON 【E-Commerce) Online Supermarket Pick-up service AEON Style Online Sales YoY% Sales YoY% +16% Sales YoY% +21%*1 【Enhanced Convenience) Number of stores implemented "Regi Go" self- scan and self-checkout systems 74 stores*2 【Improved efficiency) "AI Kakaku” program loss on price reductions in delicatessen YoY change ▲ 1.4 pt. Copyright 2022 AEON CO., LTD. All Rights Reserved. Approx. 2.2 times*1 Number of stores implemented "AI camera" program 28 stores Expenses of head office YOY% 9.2% * 1 Including the results of AEON Retail Store Cashless payment ratio 61.6 % Inventory level compared to the beginning of fiscal year ▲ 10.1 billion yen *3 Reference Materials 1 * 2 Including the results of AEON Retail Store. 108 stores including AEON Tohoku, AEON Kyushu, Daiei * 3 Excluding the impact of the transfer of the Tohoku business#39The End of FY2021 Consolidated Balance Sheet EON (billion yen Assets (main items only) 2021/2 2022/2 change from '21/2 Liabilities and net assets (main items only) 2021/2 2022/2 change from '21/2 Cash & deposit 1,287.5 1,172.2 ▲ 115.3 Notes and accounts payable 1,072.4 975.5 ▲ 96.8 Notes and accounts Interest bearing debt receivable-trade (incl. (excl. finance 2,102.2 2,203.1 +100.8 1,602.7 1,655.0 +52.3 installment subsidiaries) receivables) Interest bearing debt (finance subsidiaries) 1,043.4 1,087.8 +44.3 Inventories 542.8 555.1 +12.2 Operating loans, Deposits for banking business 4,010.0 4,173.4 +163.3 loans & bills discounted for 2,733.2 2,835.6 +102.4 banking business Total liabilities 9,725.4 9,820.6 +95.1 Property, buildings, and equipment 3,062.9 3,130.8 +67.9 Shareholders' equity 923.9 897.7 ▲ 26.2 Investments and 977.3 990.1 +12.7 other assets Total net assets (excl. finance 1,755.7 1,812.4 +56.6 (+21.2) Total Assets 11,481.2 11,633.0 +151.8 (excl. finance subsidiaries) (5,749.2) (5,726.7) (▲22.5) Copyright 2022 AEON CO., LTD. All Rights Reserved. subsidiaries) (1,393.6) (1,414.8) Total net assets and liabilities (excl. finance subsidiaries) 11,481.2 11,633.0 (5,749.2) (5,726.7) +151.8 (▲22.5) Reference Materials 2#40FY2021 Consolidated Cash Flow Statement EON (billion yen) Main items only FY2020 FY2021 YoY change Cash Flow from Operating Activities (Except for increase (decrease) in financial loan and time 396.4 deposits, loans, and bills discounted for banking business) (418.4) 204.4 (136.1) -192.0 (282.3) Income before income taxes 53.2 122.8 +69.6 Depreciation 296.6 307.1 +10.5 Increase (decrease) in working capital 56.2 -151.2 -207.4 Increase (decrease) in financial loan and time deposits, -21.9 68.3 90.3 loans, and bills discounted for banking business Payment for corporate taxes -83.5 -85.4 -1.8 Other-net 95.8 -57.3 -153.2 Cash Flow from Investing Activities -341.8 -343.8 -2.0 CAPX -301.2 -352.5 -51.2 Sales of tangible fixed assets 34.8 10.0 -24.8 Other-net -75.4 -1.3 74.0 Cash Flow from Financing Activities 24.2 -2.2 +26.4 Increase in cash and cash equivalents 75.8 -126.1 +201.9 Reference Materials 3 Copyright 2022 AEON CO., LTD. All Rights Reserved.#41FY2021 Investment Results (by segment) /EON (billion yen) FY2021 YoY change Consolidated Total 352.5 51.2 GMS 53.2 -12.7 SM 60.7 10.8 DS 3.5 0.7 Health & Wellness 20.2 4.5 Financial Services 39.8 -5.0 Shopping Center 134.0 49.5 Development Services and Specialty 18.2 -0.2 Store International 6.7 0.9 Other 15.8 2.7 Copyright 2022 AEON CO., LTD. All Rights Reserved. Reference Materials 4#42FY2021 Results of Daiei and ex-Daiei GMS EON (billion yen) Operating Revenue Operating Profit Segment Business Company Name VS. Result YoY % VS. FY2019 % Result YOY change FY2019 change AEON Retail store Former Daiei 109.3 -0.1% -10.2% -2.8 +0.3 +2.4 GMS GMS in Kanto, Kinki, and Nagoya region SM Daiei Copyright 2022 AEON CO., LTD. All Rights Reserved. 299.0 -3.6% +0.4% 0.2 -3.1 +1.2 Reference Materials 5#43Disclaimer regarding Forecast Statement /EON • These materials are intended for the purpose of providing information, and not to encourage any specific actions. The company has prepared these materials (including business plans) based on available information believed to be reliable, but there are risks and uncertainties. The company bears no liability for the accuracy or completeness of the information. • Please use these materials at your own discretion. The company bears no liability for any loss or harm that may arise from investment decisions made on the basis of any of the projections or targets contained in these materials. • All rights of authorship of these materials revert to AEON CO., LTD. These materials may not be reproduced or distributed without the permission of the company Copyright 2021 AEON CO., LTD. All Rights Reserved.