Reallocation of Management Resources to Businesses and Regions and Streamlining of Group Functions

「To eliminate loss-making companies and withdraw from unprofitable businesses, GFOOT CO.,LTD. was delisted and made a wholly owned subsidiary in June, and we are working to rebuild the business by strengthening cooperation with the GMS companies. Overseas, in October, shares in AEON Thailand Co., LTD. were transferred to one of Thailand's leading conglomerates.」

「This established a structure for strengthening profitability and building competitive advantages on a regional basis by standardizing the management infrastructure for procurement, logistics, IT and human resources.」

「In August, we signed a memorandum of basic agreement with ユナイテッド・スーパーマーケット・ホールディングス㈱, ㈱ダイエー, ㈱光洋, マックスバリュ関東㈱ and イオンマーケット㈱ to begin discussions on operational integration in the Tokyo metropolitan and Kinki areas, Japan’s two largest markets, where competition is expected to intensify further. The agreement aims to enable us to continue providing customers with richer lifestyles and greater convenience with speed and to build a sustainable future with local communities as the company that contributes most to local communities.」

「Following the acquisition of all shares in イオンモール, we reached a shared understanding that イオンモール could implement the following initiatives to enhance corporate value by leveraging the scalability of our Group, while our Group could do so by leveraging イオンモール’s human resources and expertise.」

「In connection with an organizational change, from the first quarter of the current fiscal year we transferred certain subsidiaries formerly included in the Services and Specialty Stores business to the GMS business. We also transferred certain subsidiaries formerly included in the Other business to the Services and Specialty Stores business.」

「During the first quarter of the current fiscal year, イオンプロダクトファイナンス㈱, formerly a consolidated subsidiary, was excluded from the scope of consolidation following the transfer of its shares. ㈱タカキュー, formerly an equity-method affiliate, was also excluded from the scope of equity-method accounting because our ownership percentage declined.」

「In November, under the “¥1 trillion supermarket vision for the Kanto region,” our tender offer for shares of Inageya, capped at 51%, was completed.」

「In connection with an organizational change, from the first quarter of the current fiscal year we transferred certain subsidiaries formerly included in the Integrated Financial Services business to the Other business.」

「ミニストップ㈱ (hereinafter, “MINISTOP”) first entered South Korea in 1990 and operated convenience stores through MINISTOP KOREA CO., LTD. (hereinafter, “MINISTOP Korea”). After comprehensively assessing the future outlook, it determined that transferring all shares in MINISTOP Korea to a third party capable of supporting its sustainable growth was the best option from the perspectives of optimizing Group management and concentrating and improving the efficiency of management resources. The transfer of all shares in MINISTOP Korea was completed in March 2022.」

「In connection with an organizational change at the beginning of the first quarter of the current fiscal year, from the first quarter we changed the former SM business to the SM business and the DS business, and transferred certain subsidiaries formerly included in the Services and Specialty Stores business to the Other business. In connection with an organizational change at the beginning of the third quarter, from the third quarter we transferred certain subsidiaries formerly included in the SM business to the GMS business.」

「In March, ㈱ビッグ・エー and アコレ㈱ integrated their operations with the aim of accelerating the dominance of the small-format DS business in the Tokyo metropolitan area and establishing a new growth strategy. In addition, in June, イオンビッグ㈱ merged with マックスバリュ長野㈱ to further consolidate and strengthen the DS business.」

「In connection with an organizational change, from the first quarter of the current fiscal year, we changed the former SM business segment to the SM business and the DS business. We also transferred certain subsidiaries formerly included in the Services and Specialty Stores business to the Other business.」

「As part of these initiatives, in April we sold all shares held in ㈱ツヴァイ, and in May タルボットジャパン㈱ terminated its business operations. In October, クレアーズ日本㈱ terminated its business operations, and in the same month we sold all shares held in ㈱イオンフォレスト, which operates The Body Shop in Japan.」

「In fiscal 2020, restructuring was completed in all regions through initiatives in Hokkaido, Tohoku, Kinki and Kyushu. Specifically, in March, イオン北海道㈱ and マックスバリュ北海道㈱ integrated their operations in Hokkaido, while マックスバリュ東北㈱ and イオンリテール㈱東北カンパニー integrated their operations in the Tohoku region. In Kinki, ㈱ダイエー made ㈱光洋 a subsidiary, and in September, イオン九州㈱, マックスバリュ九州㈱ and イオンストア九州㈱ integrated their operations in Kyushu.」

「Based on the basic agreement concerning the integration of supermarket operations in 6 regions of Japan signed in 2018, management integration was implemented in fiscal 2019 in the Chugoku and Shikoku and Tokai and Chubu regions. In fiscal 2020, management integration was implemented in March between AEON Hokkaido Co., Ltd. and Maxvalu Hokkaido Co., Ltd. in Hokkaido, between Maxvalu Tohoku Co., Ltd. and the Tohoku Company of AEON Retail Co., Ltd. in the Tohoku region, and between Daiei, Inc. and Koyo Co., Ltd. in the Kinki region.」

「The Group has adopted reform of its business structure as a policy and is promoting the strategic streamlining, consolidation and integration of Group companies. In December, it decided to terminate the business operated by its consolidated subsidiary タルボットジャパン㈱ at the end of May 2020. In March 2020, it also announced the termination of the business operated by its consolidated subsidiary クレアーズ日本㈱. In the same month, a tender offer was launched for its consolidated subsidiary ㈱ツヴァイ, and the tender offer was completed in April.」

「In December, it was also decided that マックスバリュ東北㈱ would become a wholly owned subsidiary of イオン㈱ in March 2020, after which it would integrate its operations with イオンリテール㈱東北カンパニー and begin operations under the new name イオン東北㈱.」

「Under this agreement, in March 2019, マックスバリュ西日本㈱ made ㈱マルナカ and ㈱山陽マルナカ subsidiaries and integrated their operations in the Chugoku and Shikoku regions, launching a new operating structure. In September, マックスバリュ東海㈱ and マックスバリュ中部㈱ merged in the Tokai and Chubu regions.」

「In April, イオン北海道㈱ and マックスバリュ北海道㈱ signed a merger agreement in Hokkaido, while マックスバリュ東海㈱ and マックスバリュ中部㈱ signed a merger agreement in the Tokai and Chubu regions. The mergers were scheduled for March 2020 in Hokkaido and September 2019 in the Tokai and Chubu regions, respectively.」

「Under the regional shift, we are pursuing management integration of the supermarket business across 6 areas nationwide to respond to changing customer needs, including fresh, local, natural and organic products, intensifying competition from companies and formats in other industries, and changes in the labor environment such as labor shortages.」

「In connection with the organizational reform, from the first quarter of the current consolidated fiscal year we renamed the Drug and Pharmacy business the Health & Wellness business and transferred certain consolidated subsidiaries previously included in the Services and Specialty Stores business to the Health & Wellness business. We also transferred the digital business, previously included in the GMS business, to Other.」

「For food within the GMS business, we will pursue regional company structures. For apparel, home and leisure, and H&BC (health and beauty care), we will establish specialist companies integrating merchandising and sales, with the aim of becoming No. 1 in each specialist field.」

「To address new management challenges, we implemented organizational reform aimed at establishing a stronger Group management structure, based on autonomous management by operating companies, deeper community-based management and the advancement of priority Group issues. Accordingly, from the first quarter of the current consolidated fiscal year, we revised the method of classifying business segments, merging the SM (supermarket) and DS (discount store) businesses with the small-format store business to form the SM business, and integrating the digital business, previously included in Other, into the GMS (general merchandise store) business.」

「To address new management challenges, we implemented organizational reform aimed at establishing a stronger Group management structure, based on autonomous management by operating companies, deeper community-based management and the advancement of priority Group issues.」

「To strengthen our businesses and frontline capabilities, we will reallocate management resources to businesses and regions, while specializing as a pure holding company in management functions spanning the Group. We will also eliminate and streamline overlaps and fragmentation in business areas and functions among Group companies, thereby improving the Group's productivity and efficiency.」