English Edition
Corporate Profile ÆON Mall is a specialist shopping mall developer. Our philosophy of putting the customer first has guided our continuing efforts to create malls that enhance the quality of life, stimulate local economic activity and contribute to community life and culture. ÆON Mall cooperates in the building of communities that are exciting, fun to live in and vibrant. We will use our skills to bring new value and attractiveness to communities, society and customers. Basic Philosophy Customer First (1) ÆON Mall has consistently made the needs of customers and their communities the focus of all stages of its mall business, from planning, development and construction to leasing and operation. (2) ÆON Mall and its partners have succeeded by ensuring that these customer first values are shared by everyone involved in mall operations, including tenant staff and cleaning and security personnel. (3) The key to sustainable success is a value chain in which all ÆON members meet the expectations of their customers, thereby raising further expectations and again responding to those. Contents Corporate Profile... 1 Group Profile As Japan s largest retail organization, ÆON is involved in all aspects of the shopping mall business. Its transition to a pure holding company structure on August 21, 28, will herald the start of a new growth phase. ÆON Mall is a core member of this group and responsible for all shopping mall development activities. Supermarkets GMS Strategic retailing Management Philosophy ÆON Mall will create Towns with Vitality. Along with our partners, we will continue in our endeavors to create towns filled with vitality, to enrich the lives of their people. * We define a town with vitality as a community that has gained a new and vibrant sense of energy following the creation of a new focal point for excitement, fun and lifestyle enhancement by ÆON Mall. * Our partners are all stakeholders in town development, including local communities, government, non-profit organizations, tenant companies, suppliers, landowners and investors. Financial Highlights... 3 Mid-term Management Plan... 4 Operational Identity... 5 Shopping Mall Locations... 7 Corporate Social Responsibility... 9 Organization...1 1 Long-term Management Vision 15 malls worldwide 217 GLOBAL 5 ÆON Mall 217 Target: GLA 1 Million m 2 We have adopted a long-term vision for the future evolution of ÆON Mall. Under that vision, which we call Global 5, we aim to be ranked as one of the best five developers in the world by 217. Drugstores Specialty stores General finance Development China Service Non-store Overseas 3 Malls created by ÆON Mall will continue to serve and be embraced by their communities. l ÆON Mall will establish a solid operating base, with a commanding number of malls and robust financial strength through continuous development of each of its malls. l ÆON Mall will aggressively evolve the mall business, expanding outside Japan into China and Southeast Asia toward becoming Asia s leading mall developer on our way to becoming a world-class global company. 2To be considered the No.1 company/mall to work for The future development of ÆON Mall hinges on the quality and spirit of its people. No.1 company to work for l ÆON Mall will amass new values and creativity based on an open, free and lively corporate culture of active learning that promotes innovation through inspiring professional challenges without regard to nationality, gender or age. l ÆON Mall will laud the success of its employees and accept them for who they are, as well as provide first-rate treatment. No.1 mall to work for l ÆON Mall will strive to create comfortable and satisfying workplaces in its malls, including tenant specialty stores, where all employees can be proud to work. Corporate Slogan Sharing a sense of lively participation Uniquely transcend the conventional RSC business model ÆON Mall, a pioneer in regional shopping mall development, will continue to create new value in the community. l ÆON Mall will strive to grasp changes in lifestyles and business environments in advance to stay ahead of customer trends. 5 l ÆON Mall will reduce CO 4 2 emissions to help prevent global warming. l ÆON Mall will satisfy the wants of our customers. l ÆON Mall will aim to transform itself as a one-of-a-kind enterprise by surpassing the conventional bounds of the RSC development model, taking commercial facility development to unexplored heights of service. Become everyone s favorite mall via outstanding services filled with surprises, excitement and fun Become the global leader in environmentally managed mall development ÆON Mall will broadly serve customers to create malls that are universally embraced. l ÆON Mall will also cater to the wishes of our customers. l ÆON Mall will realize surprises, excitement and fun beyond all expectations by striving for the ideal services in facilities, convenience, tenant lineup and hospitality. ÆON Mall helps its customers to enhance their lifestyles by offering new ideas through the creation of vibrant communities and creating centers for excitement, fun and lifestyle enhancement. That is our mission. We want our malls to become focal points in their communities. That is why every mall that we develop and operate is firmly rooted in the life of its community and is designed as a place full of fun and excitement to enhance the enjoyment of life. ÆON Mall will promote sustainability through mall development by utilizing natural resources and energy with discretion for minimum environmental impact and maximum service quality. l ÆON Mall will realize zero-emission malls to conserve global resources and establish a recycling society. l ÆON Mall will heighten environmental awareness among all employees, as well as among customers and partners. 1 2
Financial Highlights Mid-term Management Plan ( million) FY27 (28/2) FY21 (211/2) Years Ended February 2, 26 27 28 Revenues Operating income Ordinary income Net income Earnings per share ( )* ROE (%) ROA (%) Total assets Equity Equity ratio (%) Book value per share ( )* Interest-bearing debt Interest-bearing debt/total assets (%) Note: A 1 : 2 stock split was implemented on February 21, 27. 52,93 18,51 17,419 1,369 171.99 23.4 8.9 22,132 49,13 24.3 817.53 65,127 32.2 62,252 21,879 2,8 12,18 23. 22.4 9.6 233,57 6,34 25.6 995.1 79,858 34.3 96,86 31,642 3,681 17,439 115.63 19.2 1. 377,661 122,734 32.4 675.44 84,242 22.3 Expand new mall openings Enhance profitability of the mall business Accelerate international business expansion Undertake revitalization business Expanding New Mall Openings Major shopping malls are becoming increasingly common in Japan. The key to success in this new environment will be the ability to create malls that can earn the support of consumers and exist in harmony with local communities. We aim to strengthen our development structure, which allows us to develop malls that have strong regional roots and are in harmony with communities. FY21 Retail Sales Revenues Ordinary Income 2 trillion 2 billion 6 billion 217 GLOBAL 5 Enhancing Mall Profitability We will continue to enhance our ability to attract quality tenants, expand and update our malls, and replace and add specialty stores to ensure that our store line-ups continue to reflect market trends. We will also strengthen our specialty store support and customer satisfaction initiatives. We aim to raise our profitability by attracting more customers, leveraging our growing scale to strengthen cost competitiveness and developing new mall operating know-how. Revenues ( million) 1, 8, 62,252 6, 52,93 4, 2, 96,86 Ordinary income ( million) 35, 3, 25, 2,8 2, 17,419 15, 1, 5, 3,681 Accelerating International Business Expansion We will create infrastructure to support the international expansion of our mall business on a significant scale, especially in Asia. We are creating a new business model to support the development of an extensive chain of malls in Asia by accumulating operating know-how on site and by developing new mall formats. Revitalization Business Consumers are becoming increasingly selective, and malls are becoming the dominant shopping venues. In this environment, ÆON Mall is extending its store revitalization business, based on the latest trends in mall development. We have also made a new division, which is in charge of property management, to expand the revitalization business. 26 27 28 26 27 28 Net income ( million) 2, 15, 12,18 1,369 1, 17,439 ROE/ROA (%) 3 25 23.4 2 15 22.4 19.2 ROE ROA Initiatives to Achieve Mid-term Goals Enhance Customer Attraction and Satisfaction 5, 1 5 8.9 9.6 1. Improve mall attraction and competitiveness: operating malls over the long term 26 27 28 26 27 28 The new ÆON Mall Co., Ltd. was created from the merger with Diamond City Co., Ltd. on August 21, 27. Data for Diamond City are not included in the figures above prior to the year ended February 28, which includes second-half figures for the former Diamond City. For 29, we are predicting a substantial increase in both revenues and income, resulting from the accelerated opening of new malls in Japan and overseas, as well as the renewal of our existing outlets. Organizational structure aimed at enhancing profitability Locality-based business organization Strengthen marketing functions Strengthen on-site support 1. Attract specialty stores with strong appeal 2. Aggressive tenant replacement, expansion and renewal 3. Enhance service functions 4. Operational support for tenants to improve their sales 5. Strengthen cost performance based on best practices 6. Establish new operational know-how 3 4
Operational Identity Business Model Business Flow ÆON Mall creates dual-anchor malls in which there are two or more anchors linked by malls of specialty stores. For example, a mall anchored by both a general merchandise store and a department store can offer both day-to-day necessities and shopping opportunities for special occasions as well as restaurants, cinemas, specialty stores and various other attractions. Malls developed by ÆON Mall provide goods, services and information to satisfy the de- Market research Conceptualization, development, planning Construction Tenant leasing Management mands of today s increasingly diverse lifestyles. Anchor Anchor ÆON Mall s foremost goal in mall development is not simply the construction of a new commercial facility, but GMS Specialty store mall Department store rather the enhancement of a community. ÆON Mall s background as a specialist mall developer with extensive knowledge of retailing and services is a key advantage. Our comprehensive approach to mall development and operation encompasses all stages from market research to conceptualization, development, planning, construction, tenant leasing and management. This business model reflects our origins in the retail sector and our commitment to the creation of malls that will appeal to consumers. ÆON Mall contributes to lifestyle enhancement through the creation of vibrant communities. Development Concept Tenant Management Our vision is to bring vibrancy and excitement to communities and to the lives of the people who live there. Our ideal is the creation of malls that become popular community landmarks, and that enjoy continuing growth and development because they are focal points for a wide-range of local activities. The first step in our approach to community development is the formation of strong links with local government and society. We have a long record of mall development in partnership with numerous local governments and communities, including schemes that played a central role in regional and urban redevelopment and the establishment of new economic foundations. Today we are applying our knowledge and experience to the development and operation of community-focused malls in China and other overseas markets. Tenants who open stores in our malls are our valued partners. Our malls prosper and flourish only through the success of these individual tenants. The development of closer links with tenants is vital to our efforts to create mall environments that are surprising, exciting and fun and provide shoppers with new experiences every time they visit. As a mall developer with a profound knowledge of the retail sector, ÆON Mall is able to offer its tenants an extensive range of business support, including advice on sales area development and customer service training. We also help our tenants to use automated systems for gathering, analyzing and managing sales data. This attention to detail is reflected in strong demand for space in our malls. Tailoring Malls to Their Communities As Japan s leading mall developer, ÆON Mall has undertaken development projects in a wide range of formats, from suburban malls to large-scale regional malls on the fringes of major cities. Balanced Variety of Specialty Stores and Services ÆON Mall facilities offer enjoyment and excitement to enhance every aspect of life, including specialty stores selling everything from fashion apparel to household goods, as well as restaurants and entertainment facilities, and service centers. Revitalizing Existing Malls We systematically expand and update existing malls, periodically restructure their portfolios of specialty stores for maximum shopping enjoyment, and actively improve their facilities. Another priority is the planning and staging of events that help to attract customers. Tenant Recruitment Our unique marketing and tenant networking systems allow us to attract superior tenants, including leadingbrand apparel retailers, well-known restaurants and sophisticated service companies. These activities keep our malls attractive. Extensive Tenant Support ÆON Mall uses its experience as a highly successful mall developer and operator to provide its tenants with individual business counseling. We also offer regular on-site guidance to help tenant stores enhance their ability to attract customers and maximize their earnings. Partnership Management Specialty store associations at ÆON Mall allow all partners to work together to enhance the quality of malls. Activities include training programs and business information sharing at the national level through conferences for store managers. 5 6
Shopping Mall Locations In Japan Expanded New Mall Openings A profound knowledge of retailing has helped ÆON Mall to become Japan s leading specialist developer of shopping malls. By applying this knowledge and taking full advantage of synergies with ÆON, we are able to create shopping malls that are the most competitive in their ar- Huabei Northern China eas. In November 27, we opened ÆON Mall Hanyu, the first new development following the merger with Diamond City. This was followed by the opening of ÆON Mall Hinode. We have also recently expanded Huadong Eastern China and renewed two other malls. By February 28, the number of malls established by ÆON Mall throughout Japan had reached 46. We will continue to apply our mall development skills to the Huanan Southern China In East Asia We have started to develop our international activities, which we see creation, expansion and renewal of malls under the concept of com- as a new source of future growth for ÆON Mall. We will establish a busi- munity building. ness model to support the development of an extensive chain of malls overseas by taking full advantage of our accumulated knowledge and skills, including our site development know-how and our ability to attract superior tenants. The first mall in China to be developed with the Malaysia involvement of ÆON Mall is International Shopping Mall (under proposal), which will open in July 28. Initially, we plan to concentrate our management resources on China, and we have already opened representative offices in Beijing and Shanghai. We aim to open malls in A mall network covering downtown metropolitan areas and local suburban areas 46 malls in 26 prefectures including Metropolitan Tokyo, Osaka and Kyoto. a balanced range of locations in regions of particularly rapid economic growth, including the area of northern China centering on Beijing, as well as eastern China, where Shanghai is located. We plan to open 5 malls overseas by the year ending February 218. Through our malls, we will contribute to economic and cultural progress and the improvement of living standards in local communities. Expansion and Renewal After our malls have been opened, we systematically expand and update existing malls and periodically restructure their portfolios of specialty stores to maintain the freshness of the facilities New Malls In the year ending February 29, we plan to open four new malls. Most ÆON Mall facilities are established in response to requests from local communities. By developing and operating our malls in partnership with communities, we contribute to regional economic prosperity, including increased employment and higher tax revenues for local governments. and ensure that consumers will continue to place a high value on their presence. In the year ending February 29, we plan to expand and renew six malls. Revitalization of Existing Malls ÆON Mall Miyakonojo (under proposal) will be opened as a commercial complex consisting of a specialty store mall anchored by a Daiei store. We acquired the land and buildings previously owned by Daiei, with which ÆON Co., Ltd. has a business and capital partnership. We plan to develop this type of revitalization business increasingly in the future. First Mall in Beijing International Shopping Mall (under proposal) will be located about 4 minutes by car from central Beijing. ÆON Mall will operate it for Beijing ÆON Co., Ltd. under a contract for property management. We plan to apply experience gained through this project to the establishment of 5 of our own malls over the next 1 years. 7 8
Corporate Social Responsibility Environment Our aim is to create malls that are kind to all manner of people as well as the environment, through wide-ranging initiatives centering on the reduction of environmental loads, environment protection and the prevention of environmental contamination. In every mall that it creates, ÆON Mall strives to conserve energy and resources and minimize the impact on residential environments. In addition, environmental education is provided for specialty store employees as part of mall-wide efforts to maintain environmentally responsible mall operations. We also continue to implement extensive tree-planting projects in Japan and overseas, including the ÆON Hometown Forests program. Structure of Corporate Governance System In line with our commitment to ethical conduct, ÆON Mall s corporate governance structure upholds a high level of management transparency throughout the company s business operations. Appointment/ dismissal/ determination of remuneration Board of s Audit General Meeting of Shareholders Appointment/ dismissal/ determination of remuneration Auditors/Board of Auditors Report Appointment/dismissal Independent Auditors Report Appointment and supervision Submission of important matters Audit Accounting audit President and CEO <Business Execution Organization> Offices Management Auditing Dept. Audit of operations Executive Committee Discusses important management matters, submits opinions and reports to the President and CEO. Risk Management Committee Analyses risk situations and works continuously to eliminate risks. Also, submits opinions to the President and CEO, and discusses risk management policy. The ÆON Hometown Forests Program At every new mall we open, ÆON plants indigenous trees in partnership with its customers. Large-scale Ice Thermal Storage Systems We have introduced a variety of environmentally responsible technologies, including systems designed to utilize natural energy and reduce CO2 emissions. Waste Measurement and Sorting All waste in our malls is carefully sorted. Where possible, waste is recycled. Organization East Japan Development Dept. Chubu Development Dept. West Japan Development Dept. Development Div. Kyushu Development Dept. Construction Dept. Community Planning Development Dept. Revitalization Support Dept. Every community needs focal points for community life. ÆON Mall aims to create malls that can fulfill this role by equipping them to serve as community centers. Parking lots and central courts are made available for various community events. Other spaces in our malls are used extensively as venues for a wide variety of community activities. In addition, malls are important focal points for social contribution activities, such as blood drives and the registration of bone marrow donors. Support for Local Events We make parking lots and other spaces available for community concerts, produce displays and other community events. General Meeting of Shareholders Board of Auditors Board of s Chairman President and CEO Sales Div. Tohoku Sales Dept. Kita Kanto Sales Dept. Minami Kanto Sales Dept. Chubu Sales Dept. Kinki Sales Dept. Chugoku Shikoku Sales Dept. Kyushu Sales Dept. Property Management Sales Dept. Marketing Dept. SC Support Dept. and Advisor First Tenant Leasing Dept. Universal Design Tenant Leasing Div. Second Tenant Leasing Dept. Third Tenant Leasing Dept. Fourth Tenant Leasing Dept. ÆON Mall defines universal design (UD) as a method for ensuring that facilities are safe, secure and amenable for all people, regardless of age or physical condition. In addition to UD-based enhancements to elevators, restrooms, parking lots, information displays and other physical facilities, we also plan to use UD concepts to improve mall hospitality through enhancements to all areas of service, such as deliveries and information access for people who cannot leave their homes. Universal Design Facilities Restroom entrance signs are designed for easy recognition, and the toilets have been enhanced to facilitate use by all customers. Strategy Div. Finance and Accounting Div. Administration Div. Management Planning Dept. International Business Planning Dept. Beijing Office Shanghai Office Finance and Accounting Dept. CSR Promotion Dept. Personnel and General Affairs Dept. Systems Dept. Management Auditing Dept. J-SOX Project Team 9 1
ÆON Mall Co., Ltd. Overview Company Name Headquarters Representative : ÆON Mall Co., Ltd. Date Established : Nov. 12, 1911 : 1-5-1 Nakase, Mihama-ku, Chiba-shi, Chiba 261-8539, Japan TEL: 81-(43)-212-645 FAX: 81-(43)-212-6737 : Noriyuki Murakami, President and CEO Capital Stock : 16.6 billion (as of Feb. 2, 28) Shares of Common Stock Issued : 181,127,57 (as of Feb. 2, 28) Business Activities Number of Shopping Malls : 46 (as of Feb. 2, 28) Number of Employees : 668 (as of Feb. 2, 28) : Development of large-scale shopping malls, tenant leasing and operation/management Offices : Tokyo Office Toyosu TK Building 4F, 1-9-4 Edagawa, Koto-ku, Tokyo 135-51, Japan URL Tohoku Office Nagoya Office Osaka Office Fukuoka Office Beijing Office ÆON Mall Morioka, 4-7-1 Maegata, Morioka-shi, Iwate 2-148, Japan Daitokai Building 9F, 3-22-8 Meieki, Nakamura-ku, Nagoya-shi, Aichi 45-2, Japan Kurabo Annex Building 12F, 2-4-11 Kyutaromachi, Chuo-ku, Osaka-shi, Osaka 541-56, Japan Yamazen Building 3F, 2-9-11 Hakataekiminami, Hakata-ku, Fukuoka-shi, Fukuoka 812-16, Japan Room 121 East Ocean Center, No. 24A Jian Guo Men Wai Avenue Chaoyang District, Beijing 14, China Shanghai Office Metro Plaza Room No. 266-267 No. 555, Loushanguan Road, Changning District, Shanghai, PRC (251) : http://www.aeonmall.com s and Auditors Chairman President and CEO Senior Managing Senior Managing Managing Managing Managing Managing Managing and Advisor Naoki Hayashi Noriyuki Murakami Chitoshi Yamanaka Yoichi Kimura Tetsuji Nishio Hidehiro Hirabayashi Yukio Konishi Kenzo Fujitsuka Yoshishige Ikeda Motoya Okada Standing Auditor Auditor Auditor Auditor Hideaki Onishi Yoichi Terazawa Hiroshi Iwamoto Masato Murai Fujio Takahashi Masaru Soma Kaoru Iwamoto Masaru Yokoi Masato Nishimatsu Aritsune Hayashi Takao Okazaki ECO1J13