Aeon (8267) Investor update summary

Review of previous midterm plan and business foundation

• Operating revenue nearly reached targets, but profit was impacted by COVID and inflation, with costs rising by JPY 190 billion.

• Five reform initiatives strengthened the group's profit structure and business foundation.

• Shifted to science-based merchandising, leveraging data for assortment, pricing, and sales promotion decisions.

• Developed a group-wide product master file and real-time supply chain data platform.

• Enhanced private brands, with Topvalu achieving double-digit growth and private brand sales reaching JPY 1.7 trillion.

Digital transformation, health & wellness, and regional strategy

• Digitized stores with self-checkout, AI-driven ordering, and productivity improvements.

• Formed the largest domestic drugstore alliance through early merger with Tsuruha Holdings.

• Reorganized local supermarket businesses to achieve regional leadership and optimize assets.

• Expanded business in Vietnam, growing sales by 2.5 times and exceeding JPY 100 billion.

Market environment and growth opportunities

• Inflation and labor shortages are pressuring margins, but scale offers a competitive edge.

• Health and wellness demand is rising, and regional service gaps are a social issue.

• ASEAN markets, especially Vietnam, present high growth potential.

• Customer base and data are seen as critical assets for future growth.