Aeon (8267) Investor update summary

Review of previous midterm plan and business foundation

• Nearly achieved targeted operating revenue, but profit fell short due to COVID and inflation impacts, with costs rising by JPY 190 billion.

• Strengthened profit structure through five reform initiatives, focusing on science-based merchandising and data-driven decision-making.

• Developed a group-wide product master file and supply chain data platform, enabling real-time transaction visibility and demand consolidation.

• Enhanced private brands, notably Topvalu, which achieved double-digit growth and JPY 1.7 trillion in sales.

• Advanced digitalization, including self-checkout, AI-driven ordering, and integration of health and wellness businesses.

Achievements under the previous plan

• Formed Japan's largest drugstore alliance and completed regional business integration.

• Accelerated retail and shopping center openings in Vietnam, making it a priority market.

Strategic direction and market environment

• Plans to leverage business foundation for growth amid inflation and labor shortages, focusing on structural advantages of scale.

• Identifies health and wellness, developer & entertainment, and Vietnam as key growth drivers.

• Emphasizes the importance of customer base and data, with e-commerce and AI adoption accelerating.

• Sees overseas, especially ASEAN and Vietnam, as major growth opportunities due to limited domestic expansion.