AEON Mall : Presentation Material FY2023 2nd Quarter

Financial Results for Q2, FY2023 March 1, 2023 - August 31, 2023

October 10, 2023

Contents	1

Financial Results for Q2, FY2023 March 1, 2023 - August 31, 2023

Financial Results for Q2, FY2023

Overview of Consolidated Results・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 3

Operating Income Factors Causing Deviation From Plan・・・・・・・・・・・・・・・・・・・・・ P 4

Change in Profit (Loss) by Segment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 5

Existing Mall Specialty Store Sales by Country, Year-on-Year・・・・・・・・・・・・・・・・・・・・ P 6

Q2 Topics・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 7

Overseas: Specialty Store Sales at Existing Malls, Year-on-Year (by Business Model)・・・・・・・・・・ P 8

Japan Specialty Store Sales, Year-on-Year (91 Existing Malls)・・・・・・・・・・・・・・・・・・・ P 9

Income Statement Summary・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 10

Balance Sheet Summary・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 11

Cash Flow Statement Summary・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 12

Three-YearMedium-Term Management Plan (FY2023-FY2025) Update

Three-YearMedium-Term Management Plan Growth Policy・・・・・・・・・・・・・・・・・・・・・ P 14

China Expanded Mall Openings in High-Growth Inland Regions・・・・・・・・・・・・・・・・・・・・ P 15

Improve Value Offerings Through the Effective Use of Existing Assets・・・・・・・・・・・・・・・・・ P 16

Mall Opening Models Tailored to Each Market・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 17

Pursuing Development Patterns Tailored to the Characteristics of Each Location・・・・・・・・・・・・ P 18

Exploring New Possibilities in Virtual Space・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 19

Generating Renewable Energy Locally for Local Consumption・・・・・・・・・・・・・・・・・・・・・ P 20

Circular Malls・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P 21

Three-YearMedium-Term Management Plan (FY2023-FY2025) Growth Policy

Three-YearMedium-Term Management Plan Growth Policy・・・・・・・・・・・・・・・・・・・・・

Pursue a Regional Shift in Japan and Overseas・・・・・・・・・・・・・・・・・・・・・・・・・・・

Creating a Platform for Health and Wellness・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Discover and Commercialize Business Opportunities in Overseas Growth Markets・・・・・・・・・・・・

Accelerate Mall Openings in Priority Areas・・・・・・・・・・・・・・・・・・・・・・・・・・・・

New Business Development to Solve Local Issues・・・・・・・・・・・・・・・・・・・・・・・・

Pursue Business Model Innovation in Japan・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Diversify Value Offerings Tailored to the Market・・・・・・・・・・・・・・・・・・・・・・・・・・

Improve Profitability Through the Effective Use of Existing Assets・・・・・・・・・・・・・・・・・・

Implement Fundamental Business Structure Reforms・・・・・・・・・・・・・・・・・・・・・・・

Create New Business Models That Break From Existing Business Frameworks・・・・・・・・・・・・・

Expand Office Complex Development Functions・・・・・・・・・・・・・・・・・・・・・・・・・

Pursue Initiatives to Create New Businesses・・・・・・・・・・・・・・・・・・・・・・・・・・・

Build Strong Financial Foundations and Resilient Organizations From the Perspective of Sustainability・・・

Strengthen Management Supervision and Establish a Nimble Business Execution System・・・・・・・・・

Pursuing Diversity・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Three-YearMedium-Term Management Plan (FY2023-FY2025) Numerical Plans

Long-TermVision・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Medium- and Long-Term Numerical Targets・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Consolidated Plan for FY2023 (ending February 29, 2024)・・・・・・・・・・・・・・・・・・・・・・

Sales Assumptions Under the FY2023 Earnings Plan・・・・・・・・・・・・・・・・・・・・・・・・

Three-Year New Mall Opening Plan・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Three-Year Capital Investment and Funds Acquisition Plan・・・・・・・・・・・・・・・・・・・・・・

Target Performance Indicators・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Shareholder Returns・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Attachments (Mall Data)

Property List ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1. 24 P 25 P 26 P 27 P 28 P 29 P 30 P 31-32 P 33-34 P 35 P 36 P 37 P 38-39 P 40-42 P 43 P 44

1. 46 P 47 P 48 P 49 P 50 P 51 P 52 P 53

P 55-60

2

Financial Results for Q2, FY2023

Financial Results for Q2, FY2023	3
Overview of Consolidated Results

■Consolidated Statements of Income

	FY2023	FY2022	YoY Change
	Q2 Actual	Q2 Actual	Change	％
Operating revenue	210,807	194,104	+16,703	108.6
Operating costs	169,881	156,457	+13,423	108.6
Gross profit	40,926	37,647	+3,279	108.7
Selling, general and	16,498	14,821	+1,677	111.3
administrative expenses
Operating income	24,428	22,826	+1,602	107.0
Ordinary income	19,674	18,533	+1,141	106.2
Net income attribute	10,505	7,122	+3,382	147.5
to owners of parent
Net income per share (yen)	46.16	31.30	+14.86	－

		(Unit: ¥, Millions)
１H Plan
	Progress rate	Change
	(%)
220,000	95.8	-9,192
－	－	－
－	－	－
－	－	－
27,500	88.8	-3,071
22,500	87.4	-2,825
15,000	70.0	-4,494
65.91	－	-19.75

・Record-high operating revenue. While we secured profit growth at each profit measurement, we did not meet first half plans.

・Deviation from plan for net income attributable to owners of parent was due to a 650 million yen provision for loss on store closing in connection with the termination of management and operations for QUALITE PRIX, as well as a 500 million yen loss on disposal associated with revitalization (both budgeted for the second half of the fiscal year).

・We plan to narrow the gap between plan and results for net income by growing revenue, increasing profits by lowering expenses, and reducing extraordinary losses associated with major structural reforms.

Financial Results for Q2, FY2023	4
Operating Income	Factors Causing Deviation From Plan
	Japan

1H

Operating Income Plan

¥20.2 billion

1H
	-¥3.0 Billion
Operating
Income Plan		vs. Plan
¥27.5 billion	Japan
-¥2.0 billion

-¥2.0 billion vs. Plan

Revenue	1H
-¥6.6 billion
Operating Income
Expenses	Results
¥18.1 billion

-¥4.6 billion

Main Factors Behind Revenue Decrease

• Existing mall sales (year on year) for the first half +7.6% compared to plan of +12.0%.
• Income from water and utility expenses were -1.9 billion yen compared to plan.

Main Factors Behind Expense Reductions

・Water and utilities expenses were

-3.0 billion yen compared to plan.

Overseas					Overseas
-¥1.0 billion
	Vietnam
				・China and Vietnam were generally in line
1H		+¥300 million
			with plan.
Operating
	China			-¥1.0 billion	・Existing mall sales in China were +29.0%
Income Results		Cambodia
	-¥300 million		vs. plan	compared to plan of +30.0% for the first
¥24.4 billion	1H	-¥600 million	half.
	Operating			Indonesia	・Existing mall sales in in Vietnam were
		-¥400 million
	Income Plan	+9.7% compared to plan of +10.0% for the
	¥7.3 billion			1H	first half.
			・Results in Cambodia were affected by
					Operating Income Results
					¥6.2 billion	vacancies in the third mall opened last
						year, resulting in performance of -600
						million yen compared to plan.
						・Indonesia experienced delays in resolving
						vacant floor space, resulting in
						performance of -400 million yen compared
						to plan.

・In addition to ongoing customer-attracting events, we plan to increase revenue by leveraging mall assets.

・Amid soaring electricity prices, AEON MALL intends to reduce expenses by generating locally produced, locally consumed renewable energy and by reducing electricity consumption through efficient mall operations.