FY2012 Presentation Material
Transcript of FY2012 Presentation Material
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FY2012Presentation Material
April 11th, 2013Aeon Co., Ltd.
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FY12 Financial Result
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Achieved record-high operating revenue, ordinary income and net income
Achieved record-high operating revenue, ordinary income and net income
FY12 Financial Result
(bil. yen) FY11 FY12 yoy chg.(FY11)
yoy chg.(FY10)
Operating Revenue 5,223 5,685 108.8% 111.2%
Operating Income 198 190 ▲7 +15Ordinary Income 212 212 +0 +30
Net Income 66 74 +7 +15
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Business Segment Information
(bil. yen)Operating Revenue Operating Income
2013/2 yoy % chg. 2013/2 yoy chg.
GMS 2,664 101.9% 46 ▲9
SM 1,480 121.1% 21 +0
Strategic Small Size Store 241 113.4% 4 ▲2
Financial Services 194 115.9% 33 +11
SC Development 203 118.5% 42 +2
Service 343 109.9% 19 +0
Specialty Store 350 110.0% 6 +0
ASEAN 103 118.6% 6 ▲0
China 112 110.0% ▲1 ▲4
Total 5,685 108.8% 190 ▲7
• All business segments achieved operating revenue increase
• Financial services and SC development increased profit due to structural reform
• GMS business reported decline in profit
• Overseas business reported decline in profit due to investment for growth
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Progress of Group Structural Reform
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Financial Service Business Reform
Aeon Financial Service Co., Ltd. was established on April 1, 2013, with integration of businesses in Financial Services
Aeon Financial Service Co., Ltd. was established on April 1, 2013, with integration of businesses in Financial Services
0.5
0.7
0.9
1.1
1.3
1.5
1.7
1.9
2.1
12/4
12/5
12/6
12/7
12/8
12/9
12/10
12/11
12/12
13/1
13/2
13/312/Apr 12/May 12/Jun 12/Jul 12/Aug 12/Sep 12/Oct 12/Nov 12/Dec 13/Jan 13/Feb 13/Mar
200
100
Aeon Financial Service(ex-Aeon Credit Service)
Nikkei AverageStock price as of Apr 2, 2012=100
Stock PerformanceStock Performance
Announcement of integration of financial service business
Integration of ACS and Aeon Bank
Establishment of bank holding company
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SC Development Reform
Integration of SC Development business will be completed in FY13Accelerate growth by establishing REIT
Integration of SC Development business will be completed in FY13Accelerate growth by establishing REIT
FY2011FY2011 FY2012FY2012 FY2013FY2013
Integrate salespromotion
Integrate salespromotion
Integratetenant association
Integratetenant association
Integratedevelopment
function
Integratedevelopment
function
Integrateleasing function
(PM)
Integrateleasing function
(PM)
REITREIT
Unify SC name to“Aeon Mall”
Unify SC name to“Aeon Mall”
Group-wide promotion with 120 SC and 8,000 tenant companies
Accelerate store opening by centralization of property information and integration of organization
Accelerate growth by completing business integration and establishing REIT
Accelerate growth by completing business integration and establishing REIT
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GMS Reform (Comparison with Industry)
Same Store SalesSame Store Sales
Aeon Retail kept better same store sales than industry averageGMS segment turned around and 4Q operating income increased YOY
Aeon Retail kept better same store sales than industry averageGMS segment turned around and 4Q operating income increased YOY
DecSep Oct Nov Feb2013/Jan
‐6.0
‐5.0
‐4.0
‐3.0
‐2.0
‐1.0
0.0
1.0
2.0
3.0
4.0
100
(%)
Mar
Aeon Retail
CVS
GMS・SM
103.6%
Major Speciality Stores(Major 5 companies)
Major Speciality Stores(Major 5 companies)
Aeon RetailAeon Retail
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GMS Reform (Purpose of Reform)
Reform for specialization is a key to GMS business growthReform for specialization is a key to GMS business growth
Sales performance for past 10 yrsSales performance for past 10 yrs
主要GMS各社 6.6 tri.
1.7tri.
0.9 tri.
5.9 tri.
2.0 tri.
2.0 tri.
→
→
→
89%
119%
222%
Major GMS totalMajor GMS total
FY2002 FY2011 Growth %
GMS Reform (Specialization・Refurbishment)
GMS evolves into group of specialized storesGMS evolves into group of specialized stores
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Preceding category(Former Aeon Co., Ltd.)
Preceding category(Former Aeon Co., Ltd.)
First category(Transition to Aeon Retail~now)
First category(Transition to Aeon Retail~now)
Second category(FY2014~)
Second category(FY2014~)
R.O.UR.O.U
Aeon BakeryAeon Bakery
SELF+SERVICESELF+SERVICE
Green BoxGreen Box
others
others
Already deployed to GMS
Already deployed to GMS
Up-front investment underway
Up-front investment underway
Specializationto be completedSpecialization
to be completed
Expand specialization for total GMS
Expand specialization for total GMS
Aeon BikeAeon Bike
Aeon LiguorAeon Liguor
Topvalu CollectionTopvalu Collection
Double FocusDouble Focus
Pandora HousePandora House
GMS Reform (TOPVALU, Aeon’s PB )
Strengthen inventory control and maximize gross income by offering three distinct range of TOPVALU merchandiseStrengthen inventory control and maximize gross income by offering three distinct range of TOPVALU merchandise
FY12achievement
FY12achievement
ChallengeChallenge
• TOPVALU share for AeonRetail: 19.7% (+4.7P)
• Sales of TOPVALU(Group Total)
¥ 682 bil
• TOPVALU share for AeonRetail: 19.7% (+4.7P)
• Sales of TOPVALU(Group Total)
¥ 682 bil
FY13 policyFY13 policy
• Maximize gross incomeby optimizing PB/NB mix
• Maximize gross incomeby optimizing PB/NB mix
Strengthen inventory control furtherStrengthen inventory control further
Achieve best mix of gross income with three range of TOPVALU
Achieve best mix of gross income with three range of TOPVALU
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Progress of Mid-Term Management Plan(4 Shifts)
• Acquired Carrefour Malaysia in Oct, 2012(changed its name to AEON BIG Malaysia)
• Became No.2 retailing company in Malaysia
• Acquired Carrefour Malaysia in Oct, 2012(changed its name to AEON BIG Malaysia)
• Became No.2 retailing company in Malaysia
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Shift to Asian Markets
AEON BIG RIVERWALK VILLAGEAEON BIG RIVERWALK VILLAGE
Qingdao AEON(Marinacity)Qingdao AEON(Marinacity)
• 9 GMS stores、4 SM stores、29 Small size stores
• New store opening and M&A brought 68 stores to total 164 stores
• 9 GMS stores、4 SM stores、29 Small size stores
• New store opening and M&A brought 68 stores to total 164 stores
New StoresNew Stores
M&AM&A
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First store in Indonesia(Image)
First store in Indonesia(Image)
Shift to Asian Markets
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# of stores increased in Tokyo area(Tokyo and adjacent 3 prefectures)# of stores increased in Tokyo area(Tokyo and adjacent 3 prefectures)
+113
+263
+610
+347Daiei
Peacock
2011
Number ofstores
Number ofstores
2012
1,767 2,030 2,377
2012(with M&A)
Shift to Urban Markets
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Develop senior-friendly store
Develop senior-friendly store
Grow membershipGrow membership
Develop senior-friendly product
Develop senior-friendly product
• Opened AEON Funabashi SC as model store
• Existing stores to be more senior-friendlyExpand rest spaceEasy-to-read display, 7 am opening
• Issue “Grand Generation (G.G)” Aeon Card and G.G WAON e-money
• Senior membership expanded to 8.43 million
• Expand line-up of small portion package and “ready meal” ready-made food
• Expand line-up of Japanese delicatessen by utilizing ORIGIN’s know-how
Shift to Senior-oriented Markets
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Store-based delivery serviceStore-based delivery service
Prefecture-wide delivery servicePrefecture-wide delivery service
Internet SupermarketServicing Area
Internet SupermarketServicing Area
Prefecture-wide delivery service expanded to 29 prefectures
Prefecture-wide delivery service expanded to 29 prefectures
Shift to Digital Markets
Newly-consolidated companies
MarunakaMarunaka
AEON EVERY(ex-Tesco Japan)
AEON EVERY(ex-Tesco Japan)
AEON BIG Malaysia(ex-Carrefour Malaysia)
AEON BIG Malaysia(ex-Carrefour Malaysia)
• Utilize Aeon’s strength including TOPVALU, WAON and joint promotion
• In FY12 Marunaka earned operating income of ¥6.9 bil, exceeding official budget of ¥5 bil.
Consolidated on Dec 2011Consolidated on Dec 2011
Consolidated onNov 2012Consolidated onNov 2012
Equity-method affiliate on Jan 2013Equity-method affiliate on Jan 2013
• Introduced AEON Malaysia’s fresh product, enhanced promotion, resumed investment in refurbishment, and introduced Aeon’straining program
• Sales started to turned around and increased yoy in Feb
• Introduced TOPVALU
• Going to realize synergy by introducing Aeon’s fresh product/delicatessen, WAON, and group-wide system
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FY13 Financial Plan
202020
FY13 Financial Plan
Aim for record-high results for every levelOperating Revenue ¥6 trillion、Operating Income over ¥200 billion
Aim for record-high results for every levelOperating Revenue ¥6 trillion、Operating Income over ¥200 billion
(bil. yen)2013/2Actual
2014/2Plan yoy chg.
Operating Revenue 5,685 6,000 105.5%
Operating Income 190 200~210 +9~19
Ordinary Income 212 215~225 +2~12
Net Income 74 75 +0
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Consolidated Interest-bearing Debt
Keep D/E Ratio(excl. finance)below 0.9 timesKeep D/E Ratio(excl. finance)below 0.9 times
2014/2Budget
¥920bil. ~ ¥1 tri.
0.9 X
2015/2Target
2016/2Target
0.9 X
2013/2Actual
4.0 X4.9 X
~0.9 X
~4.0X
Interest-bearing debt (Excl. Fin. Business)
Interest-bearing debt (Excl. Fin. Business)
Interest-bearing debtfor Fin. business
Interest-bearing debtfor Fin. business
DE Ratio(Excl. Fin. business)
DE Ratio(Excl. Fin. business)
Interest-bearing debtover EBITDA
Interest-bearing debtover EBITDA
¥718 bil.overseas
domestic~ ¥550 bil.
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Continue investing for growth while keeping financial prudenceContinue investing for growth while keeping financial prudence
FY13 Key Financial Indices/Cash Flows
2012/2Actual
2013/2Actual
2014/2Budget
ROIC 5.4 % 4.6 % 5.0 %~
ROE 7.3 % 7.6 % 7.0 %~
D/E Ratio excl. Fin. business(incl. Fin. business)
0.9 x(1.4 x)
0.9 x(1.6 x)
0.9 x(~1.4 x)
(Pro forma)Operating C/F (*) ¥ 265.2 bil ¥ 274.3 bil ¥ 280.0 bil
Investments ¥ 362.1 bil ¥ 378.3 bil ¥ 400.0 bil
Interest-bearing Debt(excl. Fin. business) ¥ 812.1 bil ¥ 920.9 bil ~ ¥ 1,000 bil
* (Pro forma)Operating C/F:Operating Income+Depreciation -Corporate and other Tax
2323
Forecast to raise dividend to ¥26 per year (Interim ¥13, Year-end ¥13)Forecast to raise dividend to ¥26 per year (Interim ¥13, Year-end ¥13)
Annual dividend
Interim Year-end Total
2012/2 - ¥ 23 ¥ 23
2013/2 ¥ 12 ¥ 12 ¥ 24
2014/2(Forecast)
¥ 13 ¥ 13 ¥ 26
FY13 Dividend Forecast
Disclaimer
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This material contains projections based on the assumptions, forecasts and plans on futures. Due to the risks and unpredictable factors such as the environmental change of world economy and currency fluctuations, the actual results could be different from the described projections.