The Power of Local Specialties 2 01 The Power of Local Specialties 02 Special Feature Concentrated Taste of Natural Japanese Radish Sabaka Japanese Ra

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1 February 2016 Vol. 52 F u l l y G l o b a l, Tr u l y L o c a l SPECIAL FEATURE Beginning a New Chapter: Aeon s China Business 特集 揭开新篇章 永旺的中国事业 Interview Masato Kitera Ambassador Extraordinary and Plenipotentiary of Japan to the People s Republic of China 专访 木寺昌人 日本国驻中华人民共和国特命全权大使

2 The Power of Local Specialties 2 01 The Power of Local Specialties 02 Special Feature Concentrated Taste of Natural Japanese Radish Sabaka Japanese Radish (Maizuru City, Kyoto Prefecture) A Japanese radish that originated in the Sabaka district facing Maizuru Bay in the northern part of Kyoto Prefecture. It is grown slowly with about twice the normal cultivation period, by planting in autumn and harvesting in January to March the following year. This produces a firm radish that retains its form when cooked and is not watery when grated, bringing out the natural flavor of Japanese radish. Its characteristic leaves that spread like those of dandelions are also tasty. Sabaka Japanese radish is one of the traditional ingredients, which has been loved by the local people for years. contents Beginning a New Chapter: Aeon s China Business Interview Bilateral Cooperation to Lead Japan and China to Development Ambassador Extraordinary and Plenipotentiary of Japan to the People s Republic of China Vision Developing Business From a Point to a Plane History To Be Loved by Customers in the Community Customer-First For the sake of customers smiles Progress Mobilizing Collective Group Strength to Expand to New Areas 13 Epicurean Delights 14 Aeon Sustainable Activities 15 Group News 17 Group Companies () Traditional Vegetables of Kyoto: Association for the Promotion of the Food Culture of Sabaka Japanese Radish was established as part of Aeon s Food Artisan project, which strives to inherit traditional skills through partnerships with producers who are working to preserve local specialties. Food Artisan () Cover Art by riya Illustration by KOUJI MIYANO February 2016 Vol.52 A paper-cutting artist characterized by an ethnic style. For this special feature, depicting the ties of friendship with China with the motif of fabrics that were traded across borders and connected people since ancient times. Published on February 29, 2016 by the Corporate Communications Dept. of Aeon Co., Ltd , Nakase, Mihama-ku, Chiba-shi, Chiba, , Japan Tel (+81) Website: : : (+81) : Aeon magazine is published by Aeon Co., Ltd. Aeon is also the name of a corporate group. Opinions expressed in Aeon magazine are not necessarily those of the publisher. Aeon SPECIAL FEATURE Beginning a New Chapter: Aeon s China Business China, achieving the world s second largest GDP after the United States in 2010, has become a country having a major influence on the global economy. Although its real GDP growth rate slowed down to 6.9% in 2015, China with a population of over 1.3 billion people is home to ever-expanding middle-income consumers. To support their consumption, the government is promoting measures to boost domestic demand, while aiming to achieve stable growth. This issue features an interview with Masato Kitera, Ambassador Extraordinary and Plenipotentiary of Japan to the People s Republic of China, on the present China and future bilateral relations between Japan and China. This issue also introduces Aeon s China Business, which has evolved by taking root in the country for 30 years since the business was launched in Hong Kong. Illustration by NATSUKI KAMINO February Vol.52 2

3 Interview SPECIAL FEATURE Beginning a New Chapter: Aeon s China Business Masato Kitera Bilateral Cooperation to Lead Japan and China to Development This issue provides insight on the present China and future bilateral relations between Japan and China through an interview with Masato Kitera, Ambassador Extraordinary and Plenipotentiary of Japan to the People s Republic of China. I look forward to the exchange between high school students from Japan and China promoted by Aeon, and the future that lies ahead Diversifying consumer needs in China due to rapid economic growth and penetration of the internet The Chinese government is aiming to make a transition from high-speed to medium-tohigh-speed economic growth and sustain moderate growth as the new normal. Although some have voiced concerns about the future of the Chinese economy, the GDP growth rate of 6.9% in 2015 remains at a higher level compared with Japan and countries in Europe and America. Growths in domestic demand and consumption are of particular note, with active consumption not only in the wealthy class but also in the middle class, especially among households with children in their late 20 s to 30 s. I feel they are seeking higher quality products and have diversified needs, and are taking more interest in products such as imported foods and organic vegetables. With opportunities to travel abroad on the increase, expectations for high quality products ensuring safety and security are all the more reason many people visit Japan. Incidentally, an official function featuring Quality of Life in Japan was held at the Japanese ambassador s residence last year, which attracted a highest ever number of visitors. This made me fully realize the rising interest in Japanese quality. Another notable characteristic related to consumption is the spread of internet shopping. The number of internet users is said to reach as high as 650 million people in China. The latest information and trends are actively collected from across the country and abroad, and are also diffused quickly. With consumers in China seeking higher quality of products and services, their lifestyles will surely change at an accelerated pace. Profile Ambassador Extraordinary and Plenipotentiary of Japan to the People s Republic of China. After joining the Ministry of Foreign Affairs, he successively held the posts of Minister at the Embassy of Japan in Thailand and Minister at the Embassy of Japan in France. After serving as Assistant Chief Cabinet Secretary, he was appointed to the current post in November Being a good partner with the ever-changing China The Chinese government has been promoting market-oriented economic reforms under the Reform and Opening-up Policy since 1978, and numerous deregulatory measures to realize economic activities more in line with market principles were introduced in With the government adopting global standards and pushing economic activities to evolve more rapidly, Japan is expected to play a role as a partner supporting this evolution. Moreover, Japan can put its past experience and knowledge to use for the pressing challenges facing China, such as environmental conservation and aging society. I believe such cooperative efforts are important, as they will benefit the development of both countries. No miracles or magic exist in diplomatic relations, and steady efforts to continue dialogue is the only way forward. Even if there were a period of political discord, the people in the private sector and strong relations in corporate activities will serve as irreplaceable securities for bilateral ties. Currently, 23,000 Japanese companies are creating jobs for more than 10 million people throughout China. The Chinese government continues to look to Japanese companies to invest in China and contribute to social development through corporate activities. Aeon is a company supporting the enrichment of the people s lives through businesses centered on the retail business. I believe the corporate style to value Japanese-style services such as exchanging greetings and relationships with the local community has been well received by consumers in China. Moreover, the Teenage Ambassador Program, offering opportunities for exchange between high school students from Japan and China, is one of the initiatives that I hope Aeon will continue. I look forward to the future of Japan-China relationships, which will be borne by the high school students who have participated in this program. These opportunities for the younger generation to visit each other s country, learn about culture and customs, and share experiences and inspirations will be truly meaningful for the future of both countries. In addition to promoting business, I hope that Aeon will continue these initiatives to contribute to strengthening the ties of friendship with China February Vol.52 4

4 Vision Developing Business From a Point to a Plane GMS Developer (Shopping center development and operation) Aeon Mall Beijing, Tianjin GMS...6 Mall-type SC SC 5 Convenience Store Ministop Shandong Province (Qingdao) GMS...8 SM...2 CVS...58 Mall-type SC SC 7 SPECIAL FEATURE Beginning a New Chapter: Aeon s China Business Specialty Store Shoe store ASBee, etc. ASBee Services Aeon Maxvalu, etc. SM GMS (General Merchandise Store)...50 stores GMS () SM (Supermarket)...20 stores SM () CVS (Convenience Store)...58 stores CVS () Mall-type SC (Shopping Center)...21 stores SC ( ) Including Financial Services, Services & Specialty Store, etc. Total Approx. 350 stores (As of the end of January 2016) ( ) Hubei Province (Wuhan) GMS...2 Mall-type SC SC 2 Hubei Area Jiangsu Province (Suzhou) GMS...3 SM...4 Mall-type SC SC 3 Zhejiang Province (Hangzhou) GMS...1 Mall-type SC SC 1 East China Area Guangdong Province (Guangzhou and Shenzhen, etc.) GMS...22 SM...9 Mall-type SC SC 3 Aeon Delight in the comprehensive FMS (Facility Management Service) business, etc. FMS () Financial Services In China as well as in Japan, Aeon has been developing its business with the belief to contribute to realizing a prosperous life for customers. Aeon launched its business in Hong Kong about 30 years ago and has marked its 20th year in Guangzhou and Qingdao. Hong Kong GMS...8 SM...5 Aeon Credit Service AEON CREDIT SERVICE Growing with the community through glocal management The vast country of China is home to distinctive regions, each with a different history and culture. Aeon opened stores in Hong Kong in the 1980 s and in Guangdong and Shandong Provinces in the 90 s. It then began developing the business in Beijing and Tianjin in the 2000 s, followed by expansion into the East China area and Hubei area starting in By getting to know the lives of the local people and taking deep root in the community, Aeon has concentrated its store openings to develop a network of stores. Furthermore, Aeon Group s China Headquarters was established in 2011, with aims to integrate and optimize the common functions of subsidiaries in China and to strengthen the business foundation. Aeon has promoted the practice of a high-level glocal management, which combines management oriented to the local community with management in line with global standards. Aeon s China Business currently has around 60 Group companies operating with retail as the main business, besides a range of businesses such as shopping center development, services, financial services, and specialty store. The number of stores has reached 350 (as of the end of Jan. 2016). The challenge to further evolve these businesses is underway by connecting the initiatives carried out independently by each company, from a point to a line, and from a line to a plane. In the area of products, Aeon is responding to the growing emphasis on quality in China. In addition to stepping up efforts to develop and market original products for China from Aeon s private brand Topvalu, general merchandise stores (GMS) are offering organic and chemical-free vegetables in high demand in the farm produce section. Through collaboration with administrative organs, Aeon has developed a traceability system using two-dimensional bar codes that can confirm information such as the name of the producer and the place of the production. Thus, Aeon is meeting customer expectations to ensure food safety and security. In the area of sales, a joint sales promotion for all Aeon stores (GMS) in China began in In November 2015, Aeon stores, Maxvalu supermarkets (SM), and Ministop convenience stores collaborated above and beyond business categories of the Group to hold the Aeon Hokkaido Fair. This is Aeon s unique initiative that utilizes its store network to connect customers in China with producers in Japan through its products. In the area of service, Aeon is developing a system to reflect customers voice by store and by community. In line with the Chinese custom to often receive customer feedback directly at service counters, Aeon collects customers voice received at each store and shares the information among Group companies in the country to improve services. By building on these various initiatives, Aeon continues to evolve in order to be loved by the customer and become an indispensible part of the community February Vol.52 6

5 History To Be Loved by Customers in the Community 1985 Jusco Stores (Hong Kong) established in Hong Kong. Jusco Kornhill Plaza Store opened as the first store in China in The company was listed on the Hong Kong Stock Exchanges in 1994 JUSCO Stores Hong Kong871 JUSCO 94 Names mentioned are company names at the time of establishment and store names at the time of opening Aeon has continued its challenge to conduct business in tandem with CSR activities, in order to be loved by customers and the people in the local community in China. Offering new shopping experiences Aeon s China Business began with the establishment of Jusco Stores (Hong Kong)* 1 in December In 1987, Jusco Kornhill Plaza Store opened as the anchor store of a commercial facility developed on top of a subway station, boasting 14,000m 2, which was the largest store space in Hong Kong at the time. The store offered a sales floor of 1,000m 2 for household appliances whose demand had been rising at that time. Responding to customers voices and offering integrated services from delivery to installation led to receiving an enormous amount of support. Meanwhile, Nihon Credit Service Co., Ltd.* 2 launched the hire purchase* 3 business allowing customers to more easily buy expensive items. Since the establishment of its local subsidiary in 1990, the company expanded operations in the shopping credit business including auto loans, and became the first Japanese-affiliated company in Hong Kong to enter the credit card business. In light of legal reforms that permitted foreign-affiliated retailers to do business in mainland China, Aeon proceeded with preparations to open new stores. In 1996, Jusco Tee Mall Store opened as the first store in mainland China. The store introduced a self-service system when face-to-face selling was still the mainstream. It offered one-stop convenience to buy things needed for food, clothing and housing, and the joy to freely choose from a wide selection of items. In 2008, Aeon Beijing International Mall Shopping Center opened as the first shopping center in China. At the same time, some Group companies in the Service Business and Jusco Tee Mall Store opened in Guangdong Province as the first store in mainland China 1 JUSCO Aeon Credit Service (Asia) listed on the Hong Kong Stock Exchange () Aeon Environmental Foundation launched Japan- China International Symposium on Environmental Issues with the goal of international cooperation between China and Japan, aimed to achieve both economic growth and environmental conservation Aeon Beijing International Mall Shopping Center opened as the first Aeon Mall in China Tree planting began at the Great Wall of China. The number of trees planted reached one million in Tree-raising activities conducted in Topvalu TOPVALU () In 2015, Aeon conducted a brand survey among customers and employees. The responses reconfirmed that what is most expected of Topvalu is safety and security. Based on these findings, Aeon is reviewing products and accelerating new product development. TOPVALU 2011 Aeon Group s China Headquarters established Chenghai Yilu Store opened as the first Ministop store in China MINISTOP () Began planning and developing original Topvalu products for China TOPVALU () 2009 SPECIAL FEATURE Began Japan-China Teenage Ambassador Program annually, promoting international cultural and people-topeople exchange among high school students in Japan and Asian countries Beginning a New Chapter: Aeon s China Business 2015 Aeon Mall Wuhan Jingkai opened as flagship mall in China Name of Jusco for GMS unified as Aeon GMS JUSCO () AEON () Supermarket Maxvalu opened in Guangzhou, Qingdao and Suzhou SM 2012 Promoting community contribution activities in tandem with business Besides business activities, Aeon has made steady efforts to build up environmental conservation and CSR activities in order to contribute to the development of local communities. The tree planting at the Great Wall in China that began in 1998 has drawn a total of 15,000 volunteers from Japan and China over the years, and the number of trees planted has reached one million. In addition, Aeon Happy Yellow Receipt Campaign was launched at Aeon stores (GMS) in On the 11th of every month, Aeon Day, customers place the yellow receipts they receive on this day in a box labeled with the name of the local volunteer organization they wish to support. Aeon then contributes goods equivalent to a value of 1% of the total amount of the receipts to each organization. In Japan, the Campaign has been conducted for 15 years since The initiative allows customers to contribute to the local community through shopping and is an example of an activity embodying one of Aeon s principles that the retail industry is a local industry. In China, the Campaign has expanded to supermarkets and convenience stores besides GMS, with the receipt submission rate exceeding 34% in FY2015 (based on number of customers), and it has been well received as an easy way to contribute to the community. Aeon will continue to actively promote community contribution activities together with the customers. Aeon Happy Yellow Receipt Campaign launched at GMS, which later expanded to supermarkets, convenience stores, and specialty stores in shopping centers GMS SMSC 2014 Aeon Cheers Club launched to offer environmental conservation activities and learning experiences for elementary and junior high school students Specialty Store Business launched their business, including Aeon Fantasy (China) Co., Ltd. operating in-door amusement facilities. In December 2015, in an effort to create a facility for not only shopping and dining but also for the entire family to have a good time, Aeon Mall Wuhan Jingkai (Wuhan, Hubei Province) opened as the flagship mall in the country. By meeting the ever-changing needs of customers, all businesses in the Group are working as one to offer attractive services. Enriching customers lives in China with Topvalu Aeon is also focusing on product development for its private brand Topvalu in order to meet customer expectations. In 2012, in addition to the products offered in Japan, Aeon began marketing Topvalu products developed specially for China to meet the needs of local customers. Manufacturing process management and quality control follow the strict standards as in Japan. The line-up of about 1,300 items as of the end of January 2016, are sold at Aeon general merchandise stores (GMS) and at Maxvalu supermarkets (SM). Aeon is striving to further enhance product appeal by reflecting customers voices in its products February Vol.52 *1 Present Aeon Stores (Hong Kong) Co., Ltd. () *2 Present Aeon Financial Service Co., Ltd. AEON Financial Service Co., Ltd. *3 A type of consumer credit in which a product is delivered as a lease, and the right of ownership is transferred when the borrower completes a predetermined number of regular payments 8

6 SPECIAL FEATURE Beginning a New Chapter: Aeon s China Business Customer-First For the sake of customers smiles working at specialty stores in the mall. About 800 people participated in the Contest held in the Beijing and Tianjin area. The plan is to roll out the Contest throughout the country in order to further enhance service quality. The number of Aeon employees working in China exceeds 15,000 people. They are refining their skills for the sake of customers smiles and building relationships of trust through daily contact with customers. Overcoming difficulties and further strengthening ties with customers In the process of doing business in China, Aeon experienced the following incidents that enhanced the employees capabilities and the ties with the customers. In 2012, Jusco Huangdao Shopping Center suffered severe damage due to the demonstrations in Qingdao, Shandong Province. Then in 2015, Aeon Mall Tianjin TEDA in Tianjin received damage from the explosions at a neighboring factory. In either case, the store employees continued to work tena- Mutually enhancing one another to realize Customer-First Aeon is actively engaged in the development of human resources in order to provide quality services to customers. In China, besides OJT at the workplace, Aeon has established an educational system which includes training to disseminate the corporate principles and to establish the Aeon Code of Conduct among the employees, basic education to acquire skills required for work, in addition to programs to foster personnel who will bear the future of the China Business. Launched in 2013 were Aeon China Business School and Aeon Tsinghua Academy, an educational program in partnership with National Tsinghua University. Students can attend courses taught by lecturers from inside and outside the company and learn in a systematic manner according to their position, department and future direction. They say there are few companies in China that design a curriculum internally and offer employee education on an ongoing basis. Based on one of the principles that the retail business is an industry of humanity, Aeon endeavors to create a virtuous cycle where support for the learning of employees encourages their growth and raises their motivation, which then improves the level of customer service, and ultimately enhances customer satisfaction. Since 2015, Aeon has launched a new initiative aimed to further enhance on-site capabilities. It is the 360 Activity to promote overall business improvement by exchanging and sharing ideas to Contributing to realizing better lives for customers Aeon Mall Tianjin TEDA (Tianjin) () ciously to clemodoan the ruined sales floors despite the mentally and physically harsh conditions. In order to resume operations as soon as possible, they worked with a determination of willing to go to any lengths for my customers and my store. Employees from Group companies also joined hands to offer their cooperation. Actually seeing these employees at Huangdao (Qingdao) working to restore operations, Motoya Okada, President of Aeon Co., Ltd. commented, I truly feel that our employees in China have embraced Aeon s philosophy. I appreciate their voluntary and dedicated efforts, and I am proud of them. As long as they are here, I have no worries about our China Business. It only took two months for both stores to resume operations throughout the facility, owing to the local employees strenuous restoration efforts and cooperation from partner companies, which embody the Aeon Basic Principles of Pursuing peace, respecting humanity, and contributing to local communities, always with the customer s point of view as its core. These experiences reinforced the approach to value the customer and the solidarity of the Group, while also solidifying the ties with the customers. Jusco Huangdao Shopping Center (Qingdao, Shandong Province) (Present Aeon Huangdao Shopping Center) JUSCO () () improve daily operations. The Activity is offering opportunities for employees to demonstrate their capabilities, recognize each other s skills and mutually enhance one another. The Roll Playing Contest also began as an initiative extending beyond the Group framework, aimed to improve customer service skills of employees Customers voices when the store reopened I heard about the reopening, so I came to shop from early in the morning. I like the spacious and pleasant sales floors and great services by the employees Activity 360 The presentations for 360 Activity was held with an aim to strengthen on-site capabilities and raise employee motivation through suggestions to improve daily operations. This is a major initiative inviting the participation of not only Aeon employees but also promoters (employees dispatched by manufacturers) permanently stationed at sales floors. At the presentations, participants shared each other s ideas and renewed their determination to promote further progress. 360 () 12. Employees, who are local consumers themselves, are building relationships of trust through contact with customers Customers voices when the store reopened Life has become more convenient after the store reopened. I ve been looking forward to the reopening of Aeon offering quality products. Employees voices involved in the recovery work I want to resume operations so that I can take pride in saying to my child, this is your mother s workplace. No matter how difficult the path is to restoration, I believe in the work I do, and my wish is to work here February Vol.52 10

7 Progress Mobilizing Collective Group Strength to Expand to New Areas SPECIAL FEATURE Beginning a New Chapter: Aeon s China Business 2 East China Area 1. Offering freshly-made dishes (Maxvalu Leyuan Store) () 2. Storytelling corner 3. Food court with high needs (2-3 Aeon Mall Hangzhou Liangzhu Xincheng) (2-3 ) 4. Aeon Road near Aeon Mall Suzhou Wuzhong Aeon is accelerating expansion into new areas centering around East China covering Jiangsu and Zhejiang Provinces, as well as Hubei Province. Through collaboration with administrative organs, the Group is contributing to the development of local economies, including community development. Leveraging accumulated know-how and collective Group strength In the East China area, the supermarket (SM) Maxvalu Leyuan Store (Suzhou, Jiangsu Province) opened in This was followed by the opening of Aeon Mall Suzhou Wuzhong in The mall is the first in Aeon to acquire the Two Green Stars, a building environmental evaluation standard system certified by the Chinese Construction Ministry. The mall is working to contribute to higher awareness about the environment through efforts such as setting up the Eco Information corner, where the mall s environmental conservation activities are introduced. Also through cooperation with the government behind the Suzhou Wuzhong Economic Development Zone, the neighboring park and road have been named Aeon Green Island and Aeon Road, and Aeon has become a familiar part of the community. Aeon Mall Suzhou Xinqu, newly opened in January 2016, is meeting the characteristics in Customers voices when the first store opened in the area Aeon Mall Hangzhou Liangzhu Xincheng (Hangzhou, Zhejiang Province) () As a parent, it helps to have many corners for children. It s convenient to have facilities in one mall where both adults and children can each enjoy themselves. The high awareness for environmental conservation is great. 1 Hubei Area the community to eat out often by housing about 120 restaurants, which accounts for more than 40% of specialty stores operating in the mall. In the inland Hubei area, Aeon began its business in Wuhan. This is an area where largescale development is underway, which is said to be comparable to Shanghai before the Expo was held, and Beijing before hosting the Olympics. In 2011, Aeon Mall Co., Ltd. reinforced collaboration with the People s Government of Wuhan Municipality by signing a cooperative agreement to construct more than five large-scale shopping malls within five years. Preparations to open the malls involved members who experienced other mall openings in Wuhan as well as Suzhou, and collaboration among Group companies. In 2014, Aeon Mall Wuhan Jinyintan opened. In December 2015, Aeon Mall Wuhan Jingkai opened as Aeon s flagship mall in China. By utilizing the strong points of the Wuhan area producing abundant agricultural products from its fertile land, general merchandise stores (GMS) are promoting local production for local consumption. Meanwhile, the development of logistics has led to enhanced product line-ups of items such as frozen fish, which had been difficult to handle in the inland areas. In the specialty store zone, Aeon Fantasy (China) Co., Ltd. with more than 100 outlets in China is operating Mollyfantasy, an amusement facility for family, and FANPE- KKA, a new next-generation theme park-type playground. The mall is providing playing space with safety and security, where a family of three generations can enjoy themselves. Moreover, the China Business of Aeon Delight Co., Ltd. offering facility management services such as cleaning and energy saving services is expanding in both areas in addition to Beijing and Tianjin. The company offers services not only to Aeon stores but also to outside of the Group companies including department stores, factories, apartment house and other facilities. In Suzhou, it is also promoting efforts in the development of human resources through cooperation with a local vocational school. Business has just begun in the areas of East China and Hubei Province. Aeon is aiming for further evolution by deepening collaboration with the community and having Group companies unite its efforts. Contributing to further development in the community In China, Aeon is strengthening collaboration in the Group through sharing of know-how, personnel exchange and other measures. In line with business development in new areas, Aeon will promote the common Group challenges of product-oriented reforms and GMS reforms, respond to the changing needs, and continue its challenge to contribute to the development of the community Offering local vegetables (Aeon Wuhan Jinyintan Store) () 2. A wide assortment of frozen food (Aeon Wuhan Jingkai Store) () 3. FANPEKKA, a theme park-type playground for children (FANPEKKA Aeon Mall Wuhan Jingkai) FANPEKKA () (FANPEKKA) February Vol.52 12

8 Epicurean Delights Food is what sustains a healthy life and is also culture portraying the natural features and values of each country. Where there is delicious food, there are people full of smiles. This issue features epicurean delights that bring smiles to the people of Japan, China and ASEAN, sweets to feel the advent of spring. CHINA Hishi Mochi Wishing for the healthy growth of girls March 3 is the day to wish for the health and happy marriage of girls. Sweets, such as Hishi Mochi or diamond-shaped rice cakes, are decorated together with hina dolls. Hishi Mochi is three-colored: pink associated with peaches signifying protection from evil, white expressing purity, and green for mugwort that is said to drive away noxious vapors. 33 JA AN Oct. Dec Striving for a sustainable society, Aeon continues environmental preservation and social contribution activities with local communities. Aeon Mall Phnom Penh Received Special Award in Eco-Business Awards Aeon Mall Phnom Penh received the Special Award in Eco-Business Awards organized by the Ministry of Tourism of Cambodia. The award is given to companies that have contributed to the sustainable economic development of Cambodia and promoted initiatives in corporate social responsibility. The mall was recognized for its adoption of energy saving facilities such as the solar power generation facility covering 1,680m 3, promotion of 3R, and tree planting activities. Promoting Modal Shift to Reduce CO2 Emissions Aeon Global SCM Co., Ltd. that assumes the Aeon Group s logistics operations established Aeon Railway Transportation Research Council, and through cooperation with 32 partner companies including manufacturers and logistics operators Aeon has been promoting modal shift to transport products using railway, which reduces the impact on the environment. This has reduced CO2 emissions and improved transportation capacity during peak periods, which led to receiving the Economy, Trade and Industry Minister s Award in the Excellent Green Logistics Commendation Program. Environmental Preservation Eco Business Award Eco Business Award 1.680m 2 3R (Reduce,Reuse Recycle) AEON GLOBAL SCM CO., LTD. 32 Solar power generation facility installed on the motorcycle parking roof Reduced CO2 emissions by using railway transportation Social Contributions Almond Jelly Enjoyed since more than 1,600 years ago 1,600 The original form of Almond Jelly is said to be apricot kernel paste, made by crushing the kernel, cooled to harden with barley starch, and served with malt sugar. It became popular throughout China as sweets to be enjoyed for Hanshi Festival or Cold Food Day (the 105th day after the winter solstice) when using fire is forbidden, and evolved into the smooth-textured Almond Jelly of today. () (105) Bánh Chay Bánh Trôi To pray for the repose of ancestors In northern Vietnam, people eat rice cake sweets on March 3 in the lunar calendar to pray for the repose of ancestors. There are such cakes as Bánh Chay (left), glutinous rice balls filled with green bean paste and served with starch gruel, and Bánh Trôi (right), ginger-flavored brown sugar wrapped with rice cakes, and they can be enjoyed at food stalls and other eateries. () ( ) VIETNAM Presentation ceremony of Topvalu Olyset Net (Maxvalu Laksi Store) TOPVALU Olyset Net (Maxvalu Laksi ) Donation presented to the Japan Committee for UNICEF Aeon s Private Brand Topvalu Mosquito Nets Presented to The Thai Red Cross Society On December 17, Aeon (Thailand) Co., Ltd. and Aeon Topvalu (Thailand) Co., Ltd. presented to The Thai Red Cross Society Topvalu Olyset Net, a mosquito net with insecticidal efficiency and repellent effect against mosquitoes, to help prevent infectious diseases such as dengue fever. The product developed through technical cooperation with Sumitomo Chemical Co., Ltd. in 2014, is currently sold in the Group stores in Thailand, Vietnam and Cambodia. Ensuring Safe Water to Children in Cambodia, Laos and Myanmar Aeon and UNICEF Safe Water Campaign was conducted from October 1 to November 15. A total of 40,339,162 yen representing donations from customers, donations of the equal amount from the Aeon 1% Club Foundation, and a 5-yen donation for each 500ml bottle of Topvalu Natural Mineral Water sold during the campaign period was donated to the Japan Committee for UNICEF. The installation of water supply facilities will support both the education and health of children who are missing school to help collect water. Making Wishes for Recovery from 3.11 Come True 3.11 Aeon is conducting a variety of initiatives in partnership with customers to realize recovery and a bright future in the disaster-afflicted areas. Storytelling Event Held To Relate Experiences from the Great East Japan Earthquake On November 4, Aeon Hokkaido Corporation held a Storytelling Event to hear stories from the victims of the Great East Japan Earthquake. Group companies have been holding such events since 2013, as an opportunity for the employees to think about what can be done and take actions for recovery and disaster prevention TOPVALU 1217AEON (Thailand) CO., LTD. AEON TOPLAVU (THAILAND) CO.,LTD. TOPVALU Olyset Net % TOPVALU 500ml 5 4,0339,162 Aeon Friendly Baseball Clinic" Held for Children of Fukushima The baseball clinic that began in 2001 with the wish to Give dreams and hope to elementary school children through friendly exchange with professional baseball players! was held in Fukushima Prefecture for the first time on November 29. Former professional baseball players coached 125 children participating in the event.! February Vol.52 14

9 Oct. Dec GROUP NEWS An Executive of The Daiei, Inc. Receives Special Encouragement Prize in Ikuboss Award 2015 Aeon Co., Ltd. and seven other Group companies are members of Ikuboss* Corporate Alliance. On October 19, Hideki Ito, Executive and Department Manager of the Business Category Development Department of The Daiei, Inc., received a special encouragement award in Ikuboss Award 2015 held as part of Ikumen Project, a commissioned project of the Ministry of Health, Labour and Welfare. The Daiei, Inc. IKUBOSS AWARD IKUBOSS 1019 IKUMEN IKUBOSS AWARD2015,The Daiei, Inc. * Managers who support the career and lives of their staff, while enjoying both work and private lives themselves and producing results, Aeon s e-money WAON WAON Issued on October 30 Hida Takayama WAON 1030 WAON Issued on November 5 Opening of Yokosuka WAON 115 WAON Issued on November 13 Nirayama Reverberatory Furnace WAON 1113 WAON Issued on November 21 Itabashi Child-rearing WAON 1121 WAON Issued on December 2 Urayasu Mirai WAON 122 WAON Cumulative number of cards issued Approx.54.6 million (As of end December 2015) 5,460 (201512) Aeon Mall Long Bien Opens as Aeon s First Mall in the Vietnam Capital of Hanoi Aeon Mall Long Bien opened as Aeon s third mall in Vietnam and the first in the country s capital of Hanoi. The Mall proposes new lifestyles to customers with entertainment facilities including one of the largest cinema complexes in Vietnam and one of Hanoi s largest indoor playgrounds for children, along with an array of restaurants and stores. 1 Long Bien 31 Long Bien Aeon Mall Long Bien Long Bien Awarded the First Honorary Member by the Federation of Asia-Pacific Retailers Associations (FAPRA) Takuya Okada, Honorary Chairman and Advisor of Aeon Co., Ltd., has been awarded with the title of Honorary Member, the first ever at FAPRA, at the 17th Asia Pacific Retailers Convention & Exhibition. Established with the purpose of developing the retail industry, FAPRA has 17 member countries and regions. The title recognized Takuya Okada s activities in FAPRA and his contributions to the development of local communities in each country, based on the belief that prosperity of the retail industry leads to peace. (FAPRA) 17 FAPRA FAPRA17 Ceremony held in Manila, Philippines Takuya Okada, Honorary Chairman and Advisor of Aeon Co., Ltd. (2nd from right) () 11 5 The 5 th Aeon Doyuten Role Playing National Contest Held With an aim to improve Aeon Doyutenkai*employees skills in serving customers, a role playing contest was held to compete in receiving customers, product knowledge, ability to make proposals, and communication skills. In the 5th Contest, 30 contestants who won the regional rounds out of about 28,000 stores from 8,000 companies advanced to the national contest and presented their skills before an audience of some 1,300 people. 5 58,000 28, ,300 * Specialty stores operating in Aeon shopping malls and general merchandise stores The 5th contest was held with the theme Staying Close to the Hearts of Customers (Tokyo Dome City Hall) 5 () In 2015, Aeon Agri Create Co., Ltd. began producing rice in Saitama Prefecture. On October 18, the sale of the first crop of Koshihikari rice began at Aeon Mall Hanyu in the prefecture. AEON AGRI CREATE Co., Ltd Disaster Prevention Event Held in Cooperation with Tokyo Metropolitan Government (Aeon Shinonome Store) () Aeon Hokkaido Fair (Aeon Beijing Fengtai Store) () Topvalu Select has launched 33 new items based on a new standard to sell only the products with a customer satisfaction of 80% or higher. 80% TOPVALU SELECT 33 The company received the Award of Excellence in the Food Culture and Public Awareness Category from Food Action Nippon Award 2015, recognized for its contributions to boosting consumption of agricultural products made in Japan., FOOD ACTION NIPPON Disaster Prevention Event Held in Cooperation with Tokyo Metropolitan Government 11 6 Hokkaido Fair Held at 109 Stores in China GFOOT Co., Ltd. Listed on the First Section of the Tokyo Stock Exchange Lawson Stores Now Accepting WAON Aeon conducted a Group-wide disaster prevention and safety drill based on the scenario that a major earthquake had occurred at its Headquaters (Chiba Prefecture). On the same day, the event held at Aeon Shinonome Store (Tokyo) promoted higher awareness of disaster prevention through a seminar in cooperation with Tokyo Metropolitan Government, an explanation of stockpiling using Aeon s private brand Topvalu, and other programs. () () TOPVALU Aeon Hokkaido Fair was held in cooperation with Aeon Hokkaido Corporation at 109 stores operating in China, including general merchandise stores, supermarkets, and convenience stores. Aeon offers quality products from around Japan to customers by leveraging the wide Aeon store network in Japan, China as well as ASEAN countries GFOOT Co., Ltd., the shoe store carrying the slogan proposing styles from footwear, has been listed in the first section of the Tokyo Stock Exchange. The company will continue the challenge to offer healthy, comfortable and attractive shoes at reasonable prices, and pursue higher customer satisfaction. GFOOT CO., LTD. GFOOT CO., LTD. Aeon s E-money WAON has been promoting alliances with non-aeon Group companies with an aim to develop an E-money that can easily be used anytime, anywhere, by anyone. The card can be used at 12,170 Lawson outlets (including Natural Lawson and Lawson Store 100), and the number of locations accepting WAON has expanded to approximately 240,000 locations throughout Japan. WAON LAWSON() WAON 12,170 LAWSON( NATURAL LAWSON LAWSON STORE100 ) February Vol.52 16

10 GROUP COMPANIES 集团企业一览 Pure holding company AEON CO., LTD. General Merchandise Store Business AEON Retail Co., Ltd. AEON Hokkaido Corporation SUNDAY CO., LTD. AEON KYUSHU CO., LTD. AEON SUPERCENTER Co., Ltd. AEONBIKE CO.,LTD. AEON Bakery Co., Ltd. AEON LIQUOR CO.,LTD. AEON RYUKYU CO.,LTD. TOPVALU COLLECTION CO., LTD. Bon Belta Co., Ltd. Supermarket & Discount Store Business United Super Markets Holdings Inc. Maxvalu Nishinihon Co., Ltd. Maxvalu Tohoku Co., Ltd. Maxvalu Tokai Co., Ltd. Maxvalu Chubu Co., Ltd. Maxvalu Hokkaido Co., Ltd. Maxvalu Kyushu Co., Ltd. Inageya Co.,Ltd. Belc CO.,LTD. WonderCorporation Co.,Ltd. A Colle Co., Ltd. ALTY FOODS Co.,Ltd. AEON BIG CO., LTD. AEON MARKET CO., LTD. MS Seika Center CO., LTD OrangeFoodCourt, Inc The Kagoshima Sunrise Farm Inc. KASUMI CO.,LTD. KASUMI GREEN CO.,LTD. KASUMI TRAVEL CO.,LTD. CREATE Co., Ltd. KYOEI AUTOMALL AND INSURANCE CO.,LTD. KOHYO CO., LTD. SANYO MARUNAKA CO.,LTD. Shimizu Shoji Co., Ltd. SHIMIZU STAFF CO., LTD. SHIMIZU HAISO CO., LTD. The Consumer Economics Research Institute, Inc Food Quality Control Center, Co., Ltd. The Daiei, Inc. Daiei SpaceCreate Co., Ltd NAKAGO Co., Ltd. JAPAN DISTRIBUTION LEASING CORPORATION BIG-A CO.,LTD. BIG-A KANSAI JAPAN CO.,LTD. Bonte, Inc. MAXVALU KANTO CO., LTD. MAXVALU NAGANO CO., LTD. MAXVALU HOKURIKU CO., LTD. MAXVALU MINAMI TOHOKU CO., LTD. The Maruetsu,Inc. Maruetsu-Development Co., Ltd. Maruetsu Fresh Foods Co., Ltd. marunaka CO.,LTD. Marno Co., Ltd. Red Cabbage Co., Ltd. LOGIONE Co., Ltd. THE LOBELIA, Inc. ROSE CORPORATION CO.,LTD. OPA CO.,LTD. The Maruetsu (Hong Kong), Co., Ltd. Maruetsu (Wuxi) Co., Ltd. Aeon Maxvalu (Guangzhou) Co., Ltd. Aeon Maxvalu (Jiangsu) Co., Ltd. Aeon Maxvalu (Qingdao) Co.,Ltd. Seibu Co.,Ltd. TENDAI CO., LTD. Japan Education Center for Future Retailing, Inc. WonderNet Co.,Ltd. U-any CO., LTD. Small Size Store Business MINISTOP CO., LTD. ORIGIN TOSHU CO., LTD. Network Service Co., Ltd. My Basket CO.,LTD MINISTOP KOREA CO., LTD. MINISTOP VIETNAM COMPANY LIMITED QINGDAO MINISTOP CO.,LTD. ROBINSONS CONVENIENCE STORES, INC. Drugstore & Pharmacy Business WELCIA HOLDINGS CO., LTD. Medical Ikkou Co., Ltd. TSURUHA HOLDINGS Inc. KUSURI NO AOKI CO., LTD. WELCIA KAIGO SERVICE Co., Ltd. WELCIA YAKKYOKU Co., Ltd. 17 Listed Companies are shown in bold print Equity-method Affiliates Affiliated Companies SHIMIZU YAKUHIN CO.,LTD. TAKIYA Co., Ltd. CFS Corporation Lianhua merrylin business (Shanghai) limited company Welpark Co., Ltd. ZAG ZAG Co., Ltd. Financial Services Business AEON Financial Service Co., Ltd. AEON CREDIT SERVICE(ASIA)CO., LTD. AEON THANA SINSAP (THAILAND) PLC. AEON CREDIT SERVICE(M)BERHAD AEON REIT Investment Corporation AEON BANK, LTD. AEON CREDIT SERVICE CO., LTD. AEON S.S.Insurance CO., LTD. AEON HOUSING LOAN SERVICE CO.,LTD. AEON Product Finance Co.,Ltd. AEON INSURANCE SERVICE CO., LTD. AEON Reit Management Co.,Ltd. ACS Credit Management Co.,Ltd. FeliCa Pocket Marketing Inc. ACS Leasing Co.,Ltd. ACS CAPITAL CORPORATION LTD. AEON Insurance Service (Thailand) Co., Ltd. ACS SERVICING(THAILAND)CO.,LTD. ACS TRADING VIETNAM CO.,LTD. AEON CREDIT SERVICE INDIA PRIVATE LIMITED AEON CREDIT SERVICE (PHILIPPINES) INC. AEON CREDIT SERVICE SYSTEMS (PHILIPPINES) INC. AEON Leasing Service (Lao) Company Limited AEON MICROFINANCE(CAMBODIA)PRIVATE COMPANY LIMITED AEON MICROFINANCE (MYANMAR) CO.,LTD. ATS Rabbit Special Purpose Vehicle Company Limited PT.AEON CREDIT SERVICE INDONESIA AEON MICROFINANCE (SHENYANG) CO., LTD. AEON MICRO FINANCE (SHENZHEN) CO.,LTD. AEON CREDIT SERVICE(TAIWAN)CO., LTD. AEON CREDIT CARD(TAIWAN)CO., LTD. AEON MICRO FINANCE (TIANJIN) CO., LTD. AEON INSURANCE BROKERS(HK)LIMITED AEON Financial Service (Hong Kong) Co., Ltd. AEON CREDIT GUARANTEE(CHINA)CO.,LTD. AEON INFORMATION SERVICE(SHENZHEN)CO.,LTD. Shopping Center Development Business AEON Mall Co., Ltd. AEON TOWN Co.,Ltd. AEON MALL HIMLAM CO., LTD. AEON MALL VIETNAM CO., LTD. AEON MALL (CAMBODIA) CO., LTD. PT. AEON MALL INDONESIA PT. AMSL DELTA MAS PT. AMSL INDONESIA AEON MALL EDZ WUHAN BUSINESS MANAGEMENT CO., LTD. AEON MALL SUNAN (SUZHOU) BUSINESS MANAGEMENT CO., LTD. AEON MALL YOUYA (BEIJING) BUSINESS MANAGEMENT CO., LTD. AEON MALL YOUYA (TIANJIN) BUSINESS MANAGEMENT CO., LTD. AEON MALL (GUANGDONG) BUSINESS MANAGEMENT CO., LTD. AEON MALL (GUANGZHOUBAIYUN) BUSINESS MANAGEMENT CO., LTD. AEON MALL (HUBEI) BUSINESS MANAGEMENT CO., LTD. AEON MALL (JIANGSU) BUSINESS MANAGEMENT CO., LTD. AEON MALL (SANHE) BUSINESS MANAGEMENT CO.,LTD. AEON MALL (SUZHOU) BUSINESS MANAGEMENT CO., LTD. AEON MALL (TIANJIN) BUSINESS CO., LTD. AEON MALL (CHINA) BUSINESS MANAGEMENT CO., LTD. AEON MALL (CHINA) CO.,LTD. AEON MALL (ZHEJIANG) BUSINESS MANAGEMENT CO.,LTD. AEON MALL (WUHAN) BUSINESS MANAGEMENT CO., LTD. L.A.Style Inc. Service & Specialty Store Business Service Business AEON DELIGHT CO., LTD. AEON Fantasy Co., Ltd. ZWEI CO., LTD. AEON Eaheart Co., LTD. AEON ENTERTAINMENT CO.,LTD. AEON CULTURE CO.,LTD. AEON COMPASS CO., LTD. AEON DELIGHT ACADEMY CO., LTD. AEON DELIGHT SECURITY CO., LTD. AEON DELIGHT SERES CO., LTD. AEON LIFE CO.,LTD. A to Z Service Co., Ltd. KAJITAKU Co., Ltd. Kankyouseibi Co., Ltd. Kantouengineering CO., LTD. General Services, Inc. DO SERVICE CO., LTD. Reform Studio Co., Ltd. A-LIFE SUPPORT Co.,Ltd. FMS Solution Co.,Ltd. AEON DELIGHT (MALAYSIA) SDN.BHD. AEON DELIGHT (VIETNAM) CO., LTD. AEON Fantasy Group Philippines,INC. AEON Fantasy Holdings (Thailand) Co.,Ltd. AEON FANTASY (MALAYSIA) SDN.BHD. AEON Fantasy (Thailand) Co.,Ltd. PT AEON FANTASY INDONESIA Suzhou Rifu Elevator Engineering Equipment Co.,Ltd. SUZHOU SHANGPIN Washing Service Co.,Ltd. SUZHOU ALLIANCE PROPERTY MANAGEMENT CO.,LTD. AEON Fantasy(China)Co., Ltd. AEON EAHEART RESTAURANT (QINGDAO) CO., LTD AEON DELIGHT(Hangzhou)SERVICE OUTSOURCING CO.,LTD. AEON DELIGHT (Jiangsu) Comprehensive Facility Management Service Co., Ltd AEON DELIGHT(CHINA)CO.,LTD. Aeon Delight Teda(Tianjin) Comprehensive Facility Management Service Co.,Ltd. Wuhan Xiaozhu Comprehensive Facility Management Service Co.,Ltd. Specialty Store Business GFOOT CO., LTD. COX CO., LTD. Taka:Q Co., Ltd. Abilities JUSCO Co., Ltd. AEON FOREST CO., LTD. AEON PET CO.,LTD AEON BODY Co., Ltd. Claire's Nippon Co., Ltd. Cosmeme CO., LTD. Talbots Japan Co., Ltd. Branshes Co. Ltd MIRAIYA SHOTEN CO., LTD. Mega Sports Co., Ltd. MEGA PETRO Co., Ltd. LAURA ASHLEY JAPAN CO., LTD. AT Japan Co., Ltd. R.O.U CO., LTD. BLUE GRASS(SHANGHAI)CO., LTD. LAURA ASHLEY ASIA CO., LIMITED NUSTEP (BEIJING) TRADE CO., LTD. TAIWAN LAURA ASHLEY CO., LTD. Talbots China CO., Ltd PET CITY (BEIJING) CO., LTD. Digital Business AEON Direct Co.,Ltd. AEON Link Co., Ltd. International Business China AEON (CHINA) CO., LTD. AEON Stores (Hong Kong) Co., Limited GUANGDONG AEON TEEM CO., LTD. QINGDAO AEON DONGTAI CO., LTD. AEON South China Co., Limited AEON EAST CHINA (SUZHOU) CO., LTD. AEON (HUBEI) CO., LTD. BEIJING AEON CO., LTD. ASEAN AEON ASIA SDN. BHD. AEON CO. (M) BHD. AEON BIG (M) SDN. BHD. AEON INDEX LIVING SDN. BHD. AEON (CAMBODIA) Co.,Ltd. AEON(Thailand) CO., LTD. PT.AEON INDONESIA Vietnam AEON VIETNAM Co., LTD DONG HUNG INVESTMENT DEVELOPMENT CONSULTANCY JOINT STOCK COMPANY LIMITED FIRST VIETNAM INVESTMENT JOINT STOCK COMPANY Shared Function Companies and Other YAMAYA CORPORATION AEON Integrated Business Service Co., Ltd. AEON AGRI CREATE Co., Ltd. AEON GLOBAL SCM CO., LTD. AEON TOPVALU CO., LTD. AEON FOOD SUPPLY Co., Ltd. AEON MARKETING CO., LTD. Cordon Vert CO., LTD. Research Institute For Quality Living Co., Ltd. AEON GLOBAL SCM SDN.BHD. AEON TOPVALU MALAYSIA SDN.BHD. AEON TOPVALU (HONG KONG) CO., LIMITED AEON TOPVALU (THAILAND) CO.,LTD. AEON Integrated Business Service CHINA Co.,Ltd. Tasmania Feedlot Pty. Ltd. AEON Global SCM(Beijing)Co.,Ltd. AEON TOPVALU (CHINA) CO., LTD AEON Demonstration Service Inc. AEON 1% Club Foundation Environmental Foundation The Cultural Foundation of Okada AEON As of the end of November 2015