AEON : REPORT 2023（17,813KB）(new window. for

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AEON

REPORT

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1

Editorial Policy

Introduction	Message from the	Value Creation	Business Strategies	Sustainability	Corporate Governance	Data Section
President

At Aeon, we operate under the Aeon Foundational Ideals that have been carefully passed down since our founding, and by putting those principles into practice, we have continued to preserve certain values and management approaches. This document (Aeon Report) has been produced with the aim of communicating to all stakeholders this unique source of value creation at Aeon, and the economic, social and environmental value created through our business activities.

In the 2023 edition of the report, in addition to reporting on the most recent activities from fiscal 2022, we will also highlight our progress on the "Five Reforms" set forth in the FY2021- FY2025 Mid-term Management Plan which has now passed the half-way point.

Aeon Foundational Ideals

Pursuing peace, respecting humans, and contributing to local communities,

always with customers as our starting point.

Aeon firmly believes that retailing is an industry to promote peace, humanity,

and local communities. To remain a thriving corporate group that fulfills this mission, we are committed to continuous innovation, with customers as our starting point.

The complete text of the Aeon Foundational Ideals is available at the following URL.

https://www.aeon.info/en/company/concept/

Aeon Group Future Vision

Create a future lifestyle that leads to a smile for each and every person

The future that the Aeon group wishes to realize is one in which customers can feel a "brighter society" and "happiness that is uniquely their own," creating a future that is fulfilling and full of smiles.

The Aeon group wishes to be a group that leads the co-creation of lifestyles, enriching each individual and society as a whole.

The full text of the Aeon Group Future Vision is available at the following URL.

https://www.aeon.info/en/company/code_of_conduct/

AEON REPORT 2023

2

Introduction

Message from the

Value Creation

Business Strategies

Sustainability

Corporate Governance

Data Section

President

Contents

Introduction

Business Strategies

Sustainability

Corporate Governance

P.1

Editorial Policy

P.18

Businesses of the Aeon Group

P.45

Message from the Chief Officer of

Sustainability

P.78

Message from the Chief Officer of

P.2

Contents

P.21

Message from the CFO, Business Management

Toward a Society in which People's Daily Lives Make

Business Promotion and Branding

Working to Establish a More Solid Financial Base Supporting the

a Seamless Switch Sustainability in their Own Right

Leveraging the Strengths of Aeon's Unique

Message from the President

Further Growth of the Group with the Aim of Enhanced Corporate

through Shopping Experiences at Aeon

Management Integrating Foundational Ideals

P.3

Message from the President

Value in the Long Term

P.47

Aeon's Sustainability

with Governance

In a Rapidly Changing Management

P.25

Overview of the "Five Reforms" of the Mid-term Management

P.48

Material Issues in Sustainability (Materiality)

P.80

Board of Directors and Executive

Environment, We will Steadily

Plan and Report on Progress

P.60

Progress on Group KPIs

Officers

Implement the Mid-term Management

P.29

Message from the Chief Officer of

Digital

P.61

Disclosures Based on the TCFD/TNFD

P.83

Corporate Governance

Plan and Strive to Shape a Prosperous

"Enriching People's Lives" by Using DX to Evolve Our Business

Recommendations

P.88

Messages from Outside Directors

Future Together with Local Communities

Model in Fast and Flexible Ways

P.65

History of Sustainability

P.32

Topics: The Launch of Aeon's "Green Beans" Online Market

P.66

Message from the Chief Officer of

Human

Data Section

Value Creation

P.34

Message from the Chief Officer of

Merchandising

Resources

P.98

Financial Highlights (10-year Data)

P.8

Aeon Foundational Ideals

We will Create and Expand Aeon's Unique Value through the

As a Corporate Group Committed to Continuous

P.99

Non-financial Highlights (10-year

Data)

P.10

Aeon Group Future Vision

Strategic Rollout of Products Reflecting Changes in the Market and

Innovation, Aeon Aims for Sustainable Growth Driven

P.100

List of Fund-raising

P.12

Aeon's Value Creation History

People's Lives

by Investment in Human Capital and Initiatives to Boost

P.101

External Ratings / Main Indexes

P.13

The Value Creation Process

P.36

Topics: Aeon's Vision for Sustainable Agriculture

Productivity as Two Integral Elements.

P.102

List of External Recognition

P.15

Message from the Chief Officer of

P.37

Message from the Chief Officer of

Logistics

P.68

Health and Productivity Management

P.103

Company Profile / IR Activities

Strategy

The Ultimate Goal of Logistics at Aeon is to Offer Customers

P.69

Diversity & Inclusion

P.104

Shareholder-related Information

Enhancing Corporate Value with

Appropriate Prices

P.71

Human Resource Development and Educational

P.105

Keyword Indexes

Aeon's Group Management System that

P.39

Message from the Chief Officer of

Health & Wellness

Structure

Balances the Autonomous Management

Evolving Health & Wellness as a Core Element of the Aeon Living

P.72

Respect for Human Rights / Human Rights Due

of Operating Companies with Organic

Zone to Create a Society Where Everyone Can Live in Good Health

Diligence / Supplier CoC

Collaboration across the Group

and Comfort

P.76

Compliance (Corporate Ethics)

P.41

Topics: The Challenge Taken on by Aeon Welcia Kyushu

P.42

Initiatives at Aeon Vietnam

Frequently Used Abbreviations in This Report

GMS / General Merchandise Store	NSC / Neighborhood Shopping Center
SM / Supermarket	CVS / Convenience Store
SC / Shopping Center	PB / Private Brand

Aeon's Disclosure Framework

[Reporting Period] Fiscal 2022 (March 1, 2022 to February 28, 2023)

*For the initiatives of some operating companies whose financial reporting periods differ,

the applicable periods are specified for each reporting item.

In addition to the Aeon Report,

[Reporting Scope] Pure holding company Aeon Co., Ltd., its 301 consolidated

Value Creation

through our website we make

subsidiaries, and 27 equity method affiliates (as of the end of February 2023)

additional disclosures including

*When the scope of reporting differs from the above, it will be so stated for each

Aeon Report

(Integrated Report)

the Aeon Book, which describes

reporting item.

Non-financial

Aeon's values of continuous

[Disclaimer] This report includes plans for the future of Aeon, as well as predictions and

Financial

Investors Relations

Sustainability and

Sustainability Data Book, which

[Month of Publication] December 2023 (the previous report was published in November

Quarterly Reports

Aeon Book (Episode compilation)

ESG Information

innovation that have been

forecasts about business results. These statements are based on Aeon's judgments and

Annual Securities Report*

passed down since our founding

opinions in light of the information available at the current time. Due to various future

Financial Statements*

Corporate Governance Report

in an episode format, and the

issues, results may differ greatly from those published in this report.

Interim Reports (For shareholders)

Sustainability Data Book

summarizes Group KPIs on

2022)

IR Website

Sustainability Website

sustainability and quantitative

[Publication] Corporate Communications Department, Aeon Co., Ltd.

information. Please refer to this

*For the purposes of this report, "Aeon" is a collective term referring to the Aeon group.

Completeness

*Mandatory disclosure

information as needed.

"Aeon People" collectively refers to the employees working across the Aeon group.

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AEON

REPORT

2O23

This represents the links between Aeon and its stakeholders, and people's smiles that form as a result.

AEON REPORT 2023

3	Introduction	Message from the	Value Creation	Business Strategies	Sustainability	Corporate Governance	Data Section
President

Message from the President

In a Rapidly Changing Management Environment, We will Steadily Implement the Mid-term Management Plan and Strive to Shape a Prosperous Future Together with Local Communities

We are striving to realize sustainable management through the "Five Reforms," which represent the group's shared strategies based on the Mid-term Management Plan (FY2021-FY2025). Fiscal 2023 represented the third year and half-way point of the plan, and it was a year in which we reaffirmed Aeon's reason for existing and its values, this included formulating a narrative of speaking to the ideas contained in the "Aeon Foundational Ideals," which we have long valued as Aeon People, and their inclusion in our Articles of Incorporation. It was also an opportunity to newly draft the "Aeon Group Future Vision" indicating the future direction we will take.

Aeon will continue to take on further challenges to shape a prosperous future together with local communities.

Akio Yoshida

Director, President and

Representative Executive Officer

"Let's make things "The thigs we need, today

exciting!"and tomorrow"

"More peace of mind,

safer for the environment"

"Topvalu Best Price Barreal Grand" low-maltbeer topped sales of 50 million within three months of its release

4	Introduction	Message from the	Value Creation	Business Strategies	Sustainability	Corporate Governance	Data Section
President

Toward Further Growth Capitalizing on the Results of the "Five Reforms"

In fiscal 2022, the Aeon group posted record revenue of 9.1168 trillion yen, an increase of 4.6% year on year, and on the profitability front we returned to the pre-pandemic levels

seen in fiscal 2019. In the interim results for fiscal 2023, we	have also	seen	a 5% jump in
operating revenue to 4.7113 trillion yen with operating profit	of 117.6	billion	yen (up 21.7

billion yen year on year), both record levels. Looking back on the business environment, the post-COVID era is in full swing. People's activities have regained their previous vigor, and consumption has surged with the revival of various local festivals and events combined with a rise in inbound demand. On the other hand, high prices against the backdrop of

rapid inflation since last	year driven by rising geopolitical risks and a historically weak yen
are having a significant	effect on the daily lives of consumers in local communities. In the

midst of a shift from long-standing deflation to inflation, we have entered a phase that is testing the ability of companies to respond to change. Looking at the consumption trends of customers, we can see a growing tendency for "polarized consumption with localized spikes," where consumers are trying their best to minimize expenditures on daily necessities while also splurging on travel and dining to express a sense of post-pandemic

The "Five Reforms" to Be Attained by 2025

1. Acceleration and evolution of the digital shift
2. Establishment of unique value by supply chain
3. Advancement of Health & Wellness for a new era
4. Creation of the Aeon Living Zone
5. Further acceleration of the shift to Asian markets

Promotion of Green Strategy

Aeon's Ideal State for 2030

Helping to enhance the value of local communities

	Sustainable,	Enrichment
Aeon's growth	circular
of local
	economy-focused	community life
	management

Expectations and support for Aeon's growth

For details, please refer to the Mid-term Management Plan on page 25 .

freedom. Moreover, sharp increases in the price of costs tend to hit those with lower disposable incomes the hardest, exacerbating the "polarization of wealth" in the structure of society. Under the complex environment represented by these two polarizations, we recognize the need to provide customers with the products and services that will satisfy them.

Amid these rapid environmental

changes, we view inflation as an

opportunity for growth, and have seen steady improvements to revenue in our retail businesses including general

merchandise stores and supermarkets where we aggressively sell Aeon's

"Topvalu" private brand products. Combined with non-retail businesses including shopping center development, services and finance returning to normal following the headwinds faced during the COVID-19 pandemic, we have laid the foundations for the next stage of growth.

I feel it is our product initiatives that have been the most fruitful during this Mid-term Management Plan. In recent years, private brands (PBs) have gained support from customers not as substitutes for national brands (NBs) but as brands that offer new value in their own right. In addition, increasingly diverse purchase channels that include physical stores and online have made the unique value of these products themselves a competitive advantage for companies. With PBs occupying a higher position in retail businesses, we see significant opportunities in this area for "Topvalu," our own PB. We have been working to evolve the product appeal of Topvalu as a part of the "establishment of unique value by supply chain," one of the "Five Reforms." By focusing on products with unique value that give shape to new ideas and excitement based on the concepts of each of the three sub- brands, we are able to appeal to new customer segments including younger demographics. Additionally, by leveraging the group's economies of scale and engineering cost reductions into every stage of the supply chain, PBs are an important means to secure profits. Sales of Topvalu have demonstrated double-digit growth year after year, and in fiscal 2023, by catering to customer needs with some 2,500 newly developed or revamped items, an expanded range of environmentally friendly products and progress tapping into the organic market, we expect a 10% year-on-year increase in sales to top one trillion yen.

For details, please refer to Message from the Chief Officer of Merchandising on page 34 .

AEON REPORT 2023

5	Introduction	Message from the	Value Creation	Business Strategies	Sustainability	Corporate Governance	Data Section
President

Aeon's "Green Beans" online market, which utilizes the latest digital technologies and functions

In terms of the "acceleration and evolution of the digital shift," we have started to see steady results in two areas, "the expansion of digital business" and "improved productivity through the digitalization of physical stores."

The COVID-19 pandemic provided a boost for the "expansion of digital business," and in fiscal 2022 net sales from our online supermarket business entered the 80 billion yen range, among the highest levels in Japan. In addition to our existing online supermarket business that involves shipping from our physical stores, in July this year we launched the "Green Beans" service, a new online Market we have been preparing since 2019 to provide service to the Tokyo metropolitan area, where there are comparatively fewer Aeon stores. Customers can set delivery times in one-hour increments from 7:00 a.m. to 11:00 p.m. and select from a range of up to 50,000 items including high-quality fresh products that are strictly temperature-controlled and bulk items our customer fulfillment centers are uniquely capable of shipping. The "Green Beans" service caters to customers who have limited opportunities to visit physical stores and a strong need to shorten the time they spend shopping, such as working couples and families raising children.

For details, please refer to Topics: The Launch of Aeon's "Green Beans" Online Market on page 32 .

Among efforts for "improved productivity through the digitalization of physical stores," we have introduced self-checkout systems such as "Regi-Go" and "Scan & Go" that allow customers to handle everything up to final payment themselves, and streamlined operations with the use of AI, such as an "AI order" system that optimizes product replenishment orders based on demand forecasts. This utilization of digital tools has driven improvements in person-hour productivity. We will continue to actively pursue these digital investments that have shown steady results with greater speed. At the same time, we will not only work

to reduce person-hours through improved efficiency, but also step up employee reskilling efforts with the aim of elevating the quality of each and every employee.

In the retail industry we have approached a time when we must change our revenue structure, and we will change the way we work in anticipation of the changing times.

For details, please refer to Message from the Chief Officer of Digital on page 29 .

Community-based Management that Balances Autonomy with Economies of Scale

Aeon's group management embraces the idea that "the retail business is a business rooted in the local community" in order to ensure the autonomous management of each operating company while responding to changes in the daily lives of customers in local communities and the competitive landscape. However, to ensure a competitive advantage in each local community, it is necessary to strike a balance in leveraging the group's economies of scale, such as by pursuing demand aggregation in product procurement and other shared group functions. With Aeon's stores in Japan, we have made progress in the development of companies based in local communities, from Hokkaido down to Kyushu and Okinawa, in an effort to have the companies that know their local communities the best drive community- based management. We will promote further localization in our overseas operations including ASEAN countries and China, such as through store development and the release of local PB products by local subsidiaries.

Among ASEAN countries, we view Vietnam as a top priority due to its high propensity for consumption during the demographic dividend phase and are pursuing dominant store openings that include e-commerce businesses. In addition to a target of 30 GMS openings by 2030, we will strengthen our multi-format rollout in Vietnam including SM, services and specialty stores. In terms of

large shopping centers, we have opened locations in the capital of Hanoi in the country's north and Ho Chi Minh in the south, and have recently decided to open our first location in Hue, the country's third biggest economic zone. On the product front, we are practicing management that adopts the customer perspective in each local community, including the launch of a local Topvalu subsidiary, and the development of systems to promote improvements that meet local needs.

AEON REPORT 2023

6	Introduction	Message from the	Value Creation	Business Strategies	Sustainability	Corporate Governance	Data Section
President

"Aeon Mall Mean Chey," where Cambodia's first in-mall park (Komsan Park) has been developed, opened in April 2023

While the various restrictions imposed during the COVID-19 pandemic have been relaxed, we do not see a return to the pre-pandemic business environment. Rather than repeating what we have done in the past, we believe it is necessary to seek out opportunities in new formats to help drive business expansion.

Aeon Kyushu Co., Ltd. and Welcia Holdings Co., Ltd. have established the joint venture Aeon Welcia Kyushu Co., Ltd. with the aim of establishing health stations in local communities. In April 2023, the joint venture opened "Welcia Plus" a new food & drug business format that integrates a fresh food supermarket with a drug store, and has been accelerating the rollout of stores in the Kyushu area. In the future, in addition to promoting the growth of the drug store business, we will not limit ourselves to thinking of health & wellness as focused on efforts to sell goods, and instead see it as a theme common to all business areas within the group, driving a transformation of each business that revolves around health & wellness. By seamlessly connecting the various products and services offered within the group, we aim to create a state where customers associate the use of Aeon with advancing their physical and mental health.

For details, please refer to Topics: The Challenge Taken on by Aeon Welcia Kyushu on page 41 .

Making Green Transformation (GX) a Business in its Own Right

Having tackled them for many years, Aeon sees environmental issues such as climate change, resource depletion, and the loss of biodiversity as critical themes. At the same time, to seek prosperity in local communities, we cannot overlook social issues, including the shrinking workforce due to the declining birthrate and aging population, and the decline of regional communities. Each of these issues is important to Aeon, whose operations are deeply rooted in people's lives and are supported by local communities. In the court of tackling these environmental and social issues, we focused on green transformation (GX). Aeon's environmental conservation activities date back to 1991 when we launched

a tree planting effort known as the "Aeon Hometown Forests Program." In the years since

we have pursued a wide range of activities across the Aeon group together with local communities, including the Bring Your Own Shopping Bag Campaign, the in-store collection of recyclables, and efforts to reduce spoilage-related food loss. While we will continue to develop these activities in a sustainable way, we also believe it is important not to limit

our perspectives to conventional environmental and social contribution, and to instead incorporate GX perspectives into the diverse businesses of the group and link those efforts to business growth.

In the area of products, we have enhanced the rollout and sale of Topvalu products using recycled plastics for containers and packaging, which are later collected in-store, recycled again, and purchased, creating a positive cycle. Since Aeon operates over 16,000 stores in Japan alone, we believe we can function as a hub for resource recycling and implement it as a business engaged in collection, recycling, and sale.

In terms of facilities, in anticipation of a future electric vehicle (EV) based society, the installation of quick charging equipment will improve the convenience of visiting our stores. In conjunction with these efforts, we are implementing various initiatives to shape a decarbonized society, including the development of systems for flexible local renewable energy through the purchase of surplus household power through EVs. In addition, by actively installing solar power generation equipment on Aeon Mall Co., Ltd. rooftops and parking facilities, we will switch to 100% renewable energy for the power used at all Aeon Mall locations in Japan by 2025.

The "MaxValu Kaita Store" where a RECYCLE STATION has been installed as a hub for the collection of recyclables

We believe that tackling green activities together with various stakeholders, especially "customers in the local community," is both a feature and an important perspective of Aeon's approach. "By having customers realize that using Aeon stores, products, and services will lead to action that takes nature and the environment into consideration," we aim to lead GX across society as a whole where "Aeon is seen as synonymous with the environment first and foremost."

For details, please refer to Message from the Chief Officer of Sustainability on page 45 .

AEON REPORT 2023

Aeon Group Future Vision Booklet (Japanese version)

7	Introduction	Message from the	Value Creation	Business Strategies	Sustainability	Corporate Governance	Data Section
President

The Principles and Vision Connecting the Group

The Aeon Foundational Ideals have been established as "pursuing peace, respecting humans, and contributing to local communities, always with customers as our starting point." To ensure these ideals will be properly understood and passed on in the future by the roughly 570,000 members of the Aeon group in Japan and overseas, we have formulated and shared a narrative. This is also designed to ensure that even if an individual employee is unsure of how to proceed as they sincerely engage in their work, they can fall back on our corporate philosophy as the basis for their own decisions. Our aim is for employees of different nationalities, languages, and values to come together while sharing common aims and values based on the Foundational Ideals. From a desire to express Aeon's intent to uphold the approaches and stances described in the Foundational Ideals, and to actively

Profile

Joined Jusco Co., Ltd. In 1983. He served as Chairman of Aeon (China) Investment Co., Ltd. His career has included positions as General Manager of China Development Management Department, China Division of Aeon Mall Co., Ltd., as well as Managing Director, General Manager of Sales Division and Chief China Business Officer and President of Aeon Mall Co., Ltd. In 2016 he was appointed Executive Officer, Shopping Center Development Business, and in 2019 took on the post of Executive Vice President and Representative Executive Officer, Shopping Center Development Business and Digital Business. In 2020 he was appointed President and Representative Executive Officer of Aeon, and has held his current position since May 2020.

communicate them and promote their understanding among stakeholders, the narrative of the Aeon Foundational Ideals has also been incorporated into our Articles of Incorporation.

More than two decades have passed since 2001 when we changed our name to "Aeon" with the declaration to "transform into a company of the 21st century." Reexamining the meaning of "a future with dreams" that we established as our vision at that time, in October 2022 we formulated our Vision Statement, to "create a future lifestyle that leads to a smile for each and every person," and also drafted the Aeon Group Future Vision. With the aim of reconsidering our reason for existing as a corporation

able to create prosperous lifestyles for people even in the distant future of our rapidly changing world, the Vision Statement and Future Vision were created through discussions and proposals involving junior employees. The words, "a smile for each and every person" reflect the unique thinking and phrasing of the younger generation. To respect the diversity of each individual and turn it into the strength of the group, we will strive to develop a corporate culture in which junior employees can channel their entrepreneurial spirit to submit new proposals.

For details, please refer to the Aeon Foundational Ideals on page 8 , and the Aeon Group Future Vision on page 10 .

Together with Stakeholders

In 1985 we introduced the concept of "customer shareholders" and have continued to engage in business activities through dialogue with customers. Today, our shareholders number more than 900,000. Since many of our shareholders are also customers who use our stores and services, receiving a variety of feedback and messages of support from them on a regular basis is extremely precious.

The Aeon Foundational Ideals state that "to ensure our longevity as a corporate group, we will continue to innovate, always with the customer as our starting point." Continuing to innovate doesn't mean that we will simply continue with improvement activities. We believe that "innovation" means that even if business is currently going well, we must not settle for the status quo, and instead adopt a forward-looking view to customer trends and make the next new moves faster than anyone else.

In the hope that customers will think "I'm glad Aeon is around," we will continue to tackle innovation and take on challenges to ensure that "Aeon's growth leads to the prosperity of the community."

AEON REPORT 2023

Takuya Okada who served as president when Okadaya opened during Japan's postwar recovery

8	Introduction	Message from the	Value Creation	Business Strategies	Sustainability	Corporate Governance	Data Section
President

Aeon Foundational Ideals

Pursuing peace, respecting humans, and contributing to local communities,

always with customers as our starting point.

Aeon firmly believes that retailing is an industry to promote peace, humanity,

and local communities. To remain a thriving corporate group that fulfills this mission, we are committed to continuous innovation, with customers as our starting point.

Peace cannot be achieved without active and conscious engagement, whether it be in recovering from war and disaster or in maintaining and promoting living in peace. Our conviction is grounded in the real-life experience of Takuya Okada, Honorary Chairman and Senior Advisor to the President. After the Second World War, Mr. Okada witnessed a customer in line at a store, holding a flyer and

weeping tears of joy, saying, "The war is really over," and he came to realize that the existence of retailing was a symbol of peace. From this realization, he decided that peace was a prerequisite for retailing to exist, and that retailing must contribute to the maintenance of peace.

Peace is more than just the absence of war and violence. It encompasses not only peace of mind but also

Okadaya circa 1946

resilience in the face of wars, disasters, and other hardships. Even in the 21st century, we continue to witness wars and face natural disasters such as earthquakes and extreme weather events more frequently than ever. This calls for us to rethink the value of peace now. Peace cannot be given by itself. Peace can only be maintained through our active and conscious engagement.

Aeon will never do anything that contradicts peace. Aeon will never take part in any such actions or activities. Our aim is to make a positive contribution to peace.

As for humans, by believing in and respecting each person, their abilities and aspirations will flourish, and by connecting with others, they feel much happier in their lives.

Honorary Chairman Okada called the retailing sector a "humanistic industry."

This means respecting the "human way," which includes having respect for each person's individuality, dignity, and autonomy. It also means believing in their potential and encouraging them to grow and become better humans through work and learning. However, it is difficult for humans to grow alone, and it is through "human connections" that

AEON REPORT 2023

9	Introduction	Message from the	Value Creation	Business Strategies	Sustainability	Corporate Governance	Data Section
President

we can become better humans together with others. It is both a realization of happiness and a pursuit of norms among people. In short, retailing is an industry of people's happiness and norms.

Enriching local communities requires us to respect the diversity and independence of each region, and to constantly meet and care for their specific needs.

Retailing is by nature a region-based industry that flourishes with the local communities. To maintain the richness and well-being of regions and the local communities within them, it is vital to take care of them continuously.

This is one of the important roles of retailing. As regions and local communities increasingly become more important in the future, Aeon will actively contribute to their prosperity by developing products tailored to each region and promoting the welfare of the local people.

Aeon is committed to actively engaging in peace efforts, supporting human happiness and norms, and contributing to the prosperity of local communities. These ideals form the foundation of putting "customers as our starting point,"

"Aeon Fundraising to Rescue Children in Ukraine" implemented in 2022

which places the needs and preferences of our customers first at the center of our operations.

Putting our customers first means that we do not put ourselves first, that is, we do not think and act for our own convenience. On the contrary, we always put our customers first and act with the highest standards of integrity, which is the foundation of Aeon. We will use this as a mirror to reflect ourselves and as the standard for every decision and action made by all Aeon People. Even when it becomes tempting to prioritize our company's or personal interests or convenience, we must firmly resist and overcome such temptations to preserve our unwavering dedication to our customers.

To achieve this, Aeon must be a corporate group that continues to innovate.

Ensuring a company's growth and survival is of paramount importance, but without constant innovation, it will decline and eventually perish. Even if maintaining the status quo is stable and comfortable, a company should not be complacent but continuously change and improve itself. Having the foresight and insight to constantly look ahead to changes in our customers and various social changes, it is essential for us to continue innovating. All Aeon People are dedicated to anticipating the evolution and changes in our customers' lifestyles and the needs of society.

Aeon has transformed from a family business to a corporation, and then to an industry. It has always preserved a dynamic corporate culture. However, as society changes faster and faster, we are most worried about losing the required innovative and entrepreneurial spirit and becoming stagnant like many large companies. We understand

that static equilibrium, where the status quo continues without change, will not last at all. The only way to avoid being overtaken by newer innovators is for Aeon to remain the largest and most advanced innovator. It is our firm determination to be an organization that constantly renews itself by keeping its founding spirit and staying ahead of its time.

Aeon supports the protection and preservation of local traditions and culture

Aeon will act with the firm belief that by embodying and practicing these ideals, we can contribute to the maintenance and development of peace, humans, and local communities.

The "Aeon Foundational Ideals" have been shared in 12 languages, with Japanese, English and Chinese versions disclosed on the Aeon website.

Japanese

https://www.aeon.info/company/concept/

English

https://www.aeon.info/en/company/concept/

Chinese

https://www.aeon.info/zh-CHS/company/concept/

AEON REPORT 2023