ＦＹ 2013 1st Half

Ｐｒｅｓｅｎｔａｔｉｏｎ Ｍａｔｅｒｉａｌ

October 7, 2013AEON CO., LTD.

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

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

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

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

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％％

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)

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"

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

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】

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:

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：

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

ASEAN business

“Aeon Malaysia” and “Aeon Big Malaysia“ Contributed to ASEAN Business

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Kluang Store of Aeon Big

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

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-10％

Before acquisition After acquisition

18.4％15.9％

Before acquisition After acquisition

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)

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

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.

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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