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    8267   JP3388200002

AEON CO., LTD.

(8267)
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Aeon : (Delayed) FY2020 Presentation Materials

04/27/2021 | 05:49am EDT

FY2020

Presentation Materials

April 9, 2021

Copyright 2021 AEON CO., LTD. All Rights Reserved.

Consolidated Results

Operating revenue, operating profit, ordinary profit achieved higher than forecasts. For FY2021 we aim a V-shaped recovery to pre-pandemic levels.

FY2019

FY2020

To Forecast

Results

Results

%change

Operating

8,604.2

8,603.9

+1.2

Revenue

Operating

215.5

150.5

+0.5

Profit

+30.5

Ordinary

205.8

138.8

+18.8

Profit

+38.8

Profit attributable to

26.8

-71.0

owners of the parent

billion yen

FY2021

Forecast

8,620.0

200.0 220.0

190.0 210.0

20.0 30.0

Copyright 2021 AEON CO., LTD. All Rights Reserved.

Compared with our revised forecasts on 23rd December, 2020

1

Profit attributable to owners of the parent

Impacted by one-off factors : tenant rent exemptions and loss of sales opportunities during the temporary closure of malls.

Made losses but lead to V-shaped recovery and long-term improvements of profitability.

billion yen

Main factors of YoY change (Efforts to Sustainable management, impact of

COVID-19

Results YoY

change

Decrease of operating profit -64.9Loss on the valuation of products Reducing Inventory

Temporary suspension and shortened business hours of shopping malls, service & specialty stores, financial service business

Decline in extraordinary income -21.7Decline in gain on sale of investment securities

Decline in gain on sale of fixed assets

-71.0-97.8

Increase of extraordinary loss +32.6Exempting rents for tenants

Mutually-beneficial and harmonious relationships with business partners

Fixed costs during suspension Expenses of infection control

Increase of taxes adjustment +7.6Drawing down of deferred tax assets AEON Retail +22.2

Solve in FY2021

Through "earning structure improvements" and "infectious disease

control measures and efforts for emerging "new normal",

V-Shaped recovery and stainable management

Copyright 2021 AEON CO., LTD. All Rights Reserved.

2

Operating Resultsby segment

SM and HealthWellness posted sharp profit growth due to continued operation as lifelines. GMS impacted by temporary suspension of tenant zones. Implemented inventory reduction to

improve gross profit margin.

Financial Service, Service & Specialty Store, and International affected by suspended operation and shortened business hours in Japan and overseas. → Improving profitability through infectious disease control measures and response to the emerging "new normal".

Earnings by segment

billion yen

Operating

YoY(%)

Operating

YoY change

Infection control

Revenue

Profit

AEON COVID19

Consolidated Total

8,603.9

0.0

150.5

-64.9

Protocol for Infectious

Disease Control

SM

3,265.6

+1.3

50.6

+29.1

+35.0

operation as

Continued

Health Wellness

956.5

+8.9

41.5

+5.9

lifelines

Solving

GMS

3,069.5

0.0

-15.6

-22.9

-22.9

issues

underlying

Financial Services

487.5

+0.6

42.6

-27.8

Suspended

Shopping Center

327.0

-12.1

35.7

-27.5

operation

Development

-82.2

Service and Specialty

642.3

-13.7

-17.6

-22.2

and

shortened

Store

business

International

414.4

-5.6

6.0

-4.7

hours

Copyright 2021 AEON CO., LTD. All Rights Reserved.

3

General Merchandising Store BusinessAEON Retail

Responded to the "new normal" through expanding online supermarket services and met stay-at-home demand. Efforts to improve profitability.

Same-store sales by category

Period of the state of emergency declared

# of

150%

Home

COVID-19

Apparel

Food

住居余暇

H&BC

cases

furnishing

100%

50%

case

50,000

40,000

30,000

20,000

10,000

Efforts

in response to the "New Normal"

0

Regi Go service

Online Supermarket (end of FY)

39W

45W 47W 49W 51W 53W

200 storesoffered online shopping and delivery

Implemented 27 stores1

service. All 200 stores provide the pick-up service※2

Sporsium Expanded approx. 350 stores in response to fitness at-home

demand3

Winter Gifts Expanded sales of local brands

Collaboration with producers Expanded sales of

seafoods, having an issue in sales channels

Improved earnings structure

Revised organization Redeployed about 860 employees from head office to stores

Streamlined cost management Review of

promotion, expansion of Regi Go, semi-self-

Reduced inventory

checkout, online meetingutilization of RPAAI

1

As of end of March 2021. Total of AEON Retail and AEON Retail Store

4

Copyright 2021 AEON CO., LTD. All Rights Reserved.

2

Picture shows drive-throughpick-up service. Counter pick-up servicelocker pick-up service also offered.

3

As of end of February 2021. Total of AEON Retail and AEON Retail Store.

General Merchandising Store BusinessAEON Retail

Initiatives in response to the "New Normal" resulted steadily. Operating Profit in the second half of the FY2020 recovered to prior-year levels.

Regi Go usage ratio in food checkout

Approx. 20

Winter Gifts EC Sales YoY

+37

Sporsium Sales YoY

+33

Results of various

initiatives

Online Supermarket Sales YoY (4Q)

+35

Number of orders of the Pick-Up service4Q result compared to

3Q ) approx. 1.7 times

Inventory level compared to the beginning of the Fiscal year.

Approx. 20% decrease

Expenses of head office YoY

-21

Same-store expenses of stores YoY

-5

Same-storesales YoY

(%)

Tenant Income YoY

(%) Operating Profit YoY change

billion yen

0

0

00

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

-5

-20

-50.0

-10

Gross profit margin YoY change(%)

+2

+0

1Q

2Q

3Q

4Q

-2

-4

-40

-10.0

Same-storeexpenses YoY (%)

-100

-150

0

-15.0

1Q

2Q

3Q

4Q

-2

-200

-4

-20.0

-250

-6

-25.0

Copyright 2021 AEON CO., LTD. All Rights Reserved.

Excluding the impact of the transfer to Tohoku business.

5

Supermarket Business

Gained demand for eating at home. Sales increased during the second state of emergency. Rapidly expanded the non-contactself-check out service in response to customer needs.

Daiei achieved sales and profit growth and net profit returned to black for first time since 2007.

Same-store sales YoY %

Major SM companies

case

120%

Period of the state of emergency declared

50,000

# of

115%

陽性者数

SM

COVID-19

SM Total

110%

cases

40,000

105%

30,000

100%

Business Integration

20,000

95%

March

90%

HokkaidoAEON Hokkaido, Maxvalu Hokkaido

September

March

TohokuMaxvalu TohokuAEON Retail Tohoku

10,000

85%

Food Business

KyushuAEON Kyushu, AEON

DSBig AAColle

80%

KinkiDaieiKohyo

Store Kyushu, Maxvalu Kyushu

0

1W 3W 5W 7W 9W 11W 13W 15W 17W 19W 21W 23W 25W 27W 29W 31W 33W 35W 37W 39W 41W 43W 45W 47W 49W 51W 53W

U.S.M.H Non-contactself-checkout service

Jun. 2019 Introduced experimentally

Oct. 2019 Deployed for customers

Jun. 2020 Started full-scale expansion

Aug. 2020 Introduced to 72 Stores totally

Feb. 2021 252 stores totally

Daiei Operating Results (non-consolidated)

Result

YoY

billion yen

%change

Operating

310.1

+4.1%

Growth 2 consecutive yr.

Revenue

Operating

3.3

+4.3

Black since 2011

Profit

Net Profit

4.0

+5.2

Black since 2007

Copyright 2021 AEON CO., LTD. All Rights Reserved.

6

HealthWellness Business

Responded the demand for infection prevention and stay-at-home.

Pursued M&A and opening new stores. Accelerate expanding drugstores offers prescription drugs as up-front investment.

Same-store sales YoY% of Welcia

case

140%

Period of State of emergency declared

50,000

130%

120%

110%

100%

# of

陽性者数Welciaエルシア COVID-19 cases

45,000

40,000

35,000

30,000

25,000

20,000

Expanding growth platform

90%

M&A

July

November

December

March

June

Joshin

Mitsuwa

YODOYA

Marue Drug

Neo Pharma

(Store

(Store

80%

Summit

transfer)

transfer)

15,000

10,000

5,000

0

1W 3W 5W 7W 9W 11W 13W 15W 17W 19W 21W 23W 25W 27W 29W 31W 33W 35W 37W 39W 41W 43W 45W 47W 49W 51W 53W

Opened new stores

Renovation

Drugstores offers prescription drugs

120 stores

102 stores

1,638 storesYoY +201 stores

Copyright 2021 AEON CO., LTD. All Rights Reserved.

※ 出店、改装、調剤併設店舗数は国内実績 7

Shopping Center Development and Service & Specialty Store Business

Earnings impacted significantly with temporary closure of all domestic malls in the first quarter.

Thorough infection disease control got back on track for a recovery. Continued opening new malls in Japan and overseas.

Same-store sales YoY % of AEON Mall tenantsAEON Entertainment, AEON Fantasy(Japan)

Period of state of emergency declared

case

50,000

250%

#ofCOVID -19 cases

8th January

45,000

AEONオンファFantasyンタジー

40,000

200%

until lifted

Mall temporary suspension

AEON Entertainment

Shortened

35,000

イオンエンターテイメント

business hours

30,000

150%

at Malls in

Full building temporary

AEONオンモーMall

25,000

shutdown

areas declared

100%

20,000

15,000

50%

10,000

5,000

0%

0

1W

3W

5W

7W

9W 11W 13W 15W 17W 19W 21W 23W 25W 27W 29W 31W 33W 35W 37W 39W 41W 43W 45W 47W 49W 51W 53W

AEON Mall: Opening & refurbishment in FY2020

Area

Opening

Refurbishment

Overseas

2Indonesia, Vietnam

2including one

expansion

Japan

1Saitama Pref.

10including 2

6th

mall in Vietnam:AEON Mall Hai Phong Le Chan

expansions

Opened in December 2020

Copyright 2021 AEON CO., LTD. All Rights Reserved.

8

Financial Service Business

Expense increased due to building up allowance for doubtful accounts in the first half in Japan and overseas. Collection activities smoothly progressed.

Financial results of AEON Financial Service exceeded its earnings forecasts.

AEON Financial ServiceBad debt expenses

billion yen

300 Japan 8.1

200

100

Overseas 24.2

10.5

4.0

5.3

8.5

9.0

0

4.0

1Q

2Q

3Q

4Q

Financial Service Businesschange of quarterly Operating Profit

billion yen

1Q

2Q

3Q

4Q

Operating Profit

Result

YoY change

Result

YoY change

Result

YoY change

Result

YoY change

-0.6

-17.1

9.3

-8.3

17.4

+11.9

16.5

-14.2

Main factors

OverseasRestrictions

JapanBuilt up

JapanDecrease in

JapanDecline in gains

of YoY

on activities such as

allowance for doubtful

promotion expenses

from the securitization

change

lockdown. Built up

accounts.

Big marketing

of receivables

allowance for doubtful

campaign to promote

compared with prior

accounts for future risk.

cashless in prior year

year

Copyright 2021 AEON CO., LTD. All Rights Reserved.

Total amount of allowance for doubtful accounts and bad debt loss

9

Operating Results by Area

Both ASEAN and China were on recovery track after 2nd quarter, although there were differences in infection status and activity restrictions by the government in each country.

Operating Profit by Area

14140.0

ASEAN

billion yen

2020FY2020年度

2019年度

FY2019

12120.0

10100.0

8.800

6.600

4.400

2.200

0 0

1Q

2Q

3Q

4Q

--220.0

--440.0

Increased allowance for doubtful

accounts in financial service

--660.0

business overseas

→ Collection proceeded smoothly

--880.0

afterwards.

14014.0

1220.0

1000.0

8.00

6.00

4.00

2.00

00

-20.0

-40.0

-60.0

-80.0

CHINA

billion yen

2019FY2019年度

FY20202020年度

1Q

2Q

3Q

4Q

Up to 11 out of 21 malls in China temporarily closed.

  • Specialty store sales were on recovery track after wards.

Same-mall-tenant sales YoY

1Q 47.5% 2Q 74.1% 3Q 94.0% 4Q 102.9%

Copyright 2021 AEON CO., LTD. All Rights Reserved.

10

Fiscal 2021 Forecast

V-shaped recovery to the pre-pandemic levels by recovery of GMS, Shopping(億円) Center Development, Service & Specialty Store and International Businesses.

FY2021 Forecast

billion yen

FY2019

FY2020

FY2021

YoY

Forecast

%change

Operating Revenue

8,604.2

8,603.9

8.620.0

+0.2%

Operating Profit

215.5

150.5

200.0220.0

+49.4+69.4

Ordinary Profit

205.8

138.8

190.0210.0

+51.1+71.1

Profit attributable to

26.8

-71.0

20.030.0

+91.0101.0

owners of the parent

Copyright 2021 AEON CO., LTD. All Rights Reserved.

11

Forecast of Dividend Payment

Maintain dividends level. V-shaped profit recovery in FY2021 and stable dividend policy.

Dividend per share

FY2020

FY2021

Forecast

End of second

Ordinary Dividend 18yen

Ordinary Dividend 18yen

quarter

Year-end

Ordinary Dividend 18yen

Ordinary Dividend 18yen

Total

Ordinary Dividend 36yen

Ordinary Dividend 36yen

Copyright 2021 AEON CO., LTD. All Rights Reserved.

12

The End of FY2021 Consolidated Balance Sheet

billion yen

Assets

2020/2

2021/2

change

Liabilities and net

2020/2

2021/2

change

assets

main items only

from ʻ20/2

from ʻ20/2

main items only

Cash & deposit

1,221.9

1,287.5

+65.5

Notes and accounts

1,068.4

1,072.4

+3.9

payable

Notes and accounts

Interest bearing debt

1,941.7

2,102.2

+160.5

(excl. finance

receivable - trade

1,626.7

1,602.7

-24.0

subsidiaries)

(incl. installment

receivables)

Interest bearing debt

1,064.9

1,043.4

-21.4

(finance subsidiaries)

Inventories

575.7

542.8

-32.8

Deposits for banking

3,784.3

4,010.0

+225.7

Operating loans,

business

loans & bills

2,483.1

2,733.2

+250.0

9,213.4

discounted for

Total liabilities

9,725.4

+512.0

banking business

Property, buildings,

3,094.3

3,062.9

-31.4

Shareholdersʼ equity

1,025.8

923.9

-101.8

and equipment

Total net assets

1,849.2

1,755.7

-93.5

Investments and

(excl. finance

953.1

977.3

+24.2

(1,498.6)

(1,393.6)

(-105.0)

other assets

subsidiaries

Total Assets

Total net assets and

11,062.6

11,481.2

+418.5

11,062.6

11,481.2

+418.5

liabilities

(excl. finance

(5,665.3)

(5,749.2)

(+83.8)

(excl. finance

(5,665.3)

(5,749.2)

(+83.8)

subsidiaries

subsidiaries

Copyright 2021 AEON CO., LTD. All Rights Reserved.

Reference Materials 1

FY2020 Consolidated Cash Flow Statement

billion yen

Main items only

FY2019

FY2020

YoY change

Cash Flow from Operating Activities

624.6

396.4

-228.1

Except for increase (decrease) in financial loan and time

deposits, loans, and bills discounted for banking

(408.5)

(418.4)

(9.8)

business

Income before income taxes

174.6

53.2

-121.4

Depreciation

292.7

296.6

3.8

Increase (decrease) in working capital

6.7

56.2

49.5

Increase (decrease) in financial loan and time deposits,

216.0

-21.9

-238.0

loans, and bills discounted for banking business

Payment of corporate taxes

-100.8

-83.5

17.3

Other-net

35.2

95.8

60.6

Cash Flow from Investing Activities

-341.4

-341.8

-0.3

CAPEX

-417.7

-301.2

116.5

Sale of tangible fixed assets

87.0

34.8

-52.1

Other-net

-10.7

-75.4

-64.6

Cash Flow from Financing Activities

51.1

24.2

-26.8

Increase in cash and cash equivalents

326.6

75.8

-250.8

Copyright 2021 AEON CO., LTD. All Rights Reserved.

Reference Materials 2

FY2020 Investment Resultsby segment

billion yen

FY2020

YoY change

Consolidated Total

301.2

-116.5

11%

GMS

58.6

-66.6

SM

22%

60.1

-12.7

HealthWellness

15.6

-0.6

Financial Service

44.8

-0.7

Shopping Center

84.5

-26.0

Development

14%

Service & Specialty

18.4

-3.0

Stores

International

24%

5.8

-5.5

Other

13.0

-1.1

Copyright 2021 AEON CO., LTD. All Rights Reserved.

Reference Materials 3

FY2020

Consolidated Financial Indicators

FY2019

FY2020

Result

Result

ROE

2.5

-7.0

ROIC

3.9

2.6

DE Ratio

1.2

1.2

Debt/EBITDA Ratio

3.3

3.5

Debt has been adjusted considering the capital nature of hybrid bonds and hybrid loans excluding Financial Service Business. Debt offset by cash and cash equivalents.

Copyright 2021 AEON CO., LTD. All Rights Reserved.

Reference Materials 4

FY2020 Results of Daiei and ex-Daiei GMS

billion yen

Operating

Operating

Business

Company Name

Revenue

Profit

Segment

YoY

Result

YoY

Result

change

AEON Retail store

GMS

Former Daiei GMS in Kanto,

109.5

-10.1%

-3.2

+2.0

Kinki, and Nagoya region

SM

Daiei

310.1

+4.1%

3.3

+4.3

AEON Store Kyushu, which succeeded the former Daiei GMS in Kyushu, merged with AEON Kyushu and Maxvalu Kyushu in September 2020.

Copyright 2021 AEON CO., LTD. All Rights Reserved.

Reference Materials 5

Disclaimer regarding Forecast Statement

  • These materials are intended for the purpose of providing information, and not to encourage any specific actions. The company has prepared these materials (including business plans) based on available information believed to be reliable, but there are risks and uncertainties. The company bears no liability for the accuracy or completeness of the information.
  • Please use these materials at your own discretion. The company bears no liability for any loss or harm that may arise from investment decisions made on the basis of any of the projections or targets contained in these materials.
  • All rights of authorship of these materials revert to AEON CO., LTD. These materials may not be reproduced or distributed without the permission of the company

Copyright 2021 AEON CO., LTD. All Rights Reserved.

Disclaimer

AEON Co. Ltd. published this content on 27 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2021 09:48:02 UTC.


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Financials
Sales 2022 8 731 B 79 892 M 79 892 M
Net income 2022 29 522 M 270 M 270 M
Net Debt 2022 1 925 B 17 612 M 17 612 M
P/E ratio 2022 88,1x
Yield 2022 1,17%
Capitalization 2 602 B 23 820 M 23 805 M
EV / Sales 2022 0,52x
EV / Sales 2023 0,51x
Nbr of Employees 155 578
Free-Float 83,1%
Chart AEON CO., LTD.
Duration : Period :
Aeon Co., Ltd. Technical Analysis Chart | 8267 | JP3388200002 | MarketScreener
Technical analysis trends AEON CO., LTD.
Short TermMid-TermLong Term
TrendsNeutralBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus UNDERPERFORM
Number of Analysts 8
Last Close Price 3 076,00 JPY
Average target price 2 512,50 JPY
Spread / Average Target -18,3%
EPS Revisions
Managers and Directors
Akio Yoshida Executive President & Representative Director
Akinori Yamashita Director, Head-Finance & Business Administration
Motoya Okada Executive Chairman
Yukako Uchinaga Independent Outside Director
Toru Nagashima Independent Outside Director
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