Corporate Branding Overview2008

English Edition

4 51 2

Corporate Profile

Long-term Management Vision 1150 malls worldwideMalls created by ÆON Mall will continue to serve and be embraced by their communities.

l ÆON Mall will establish a solid operating base, with a commanding number of malls and robust financial strength through continuous development of each of its malls.

l ÆON Mall will aggressively evolve the mall business, expanding outside Japan into China and Southeast Asia toward becoming Asia’s leading mall developer on our way to becoming a world-class global company.

3Uniquely transcend the conventional RSC business modelÆON Mall, a pioneer in regional shopping mall development, will continue to create new value in the community.

l ÆON Mall will strive to grasp changes in lifestyles and business environ-ments in advance to stay ahead of customer trends.

l ÆON Mall will aim to transform itself as a one-of-a-kind enterprise by sur-passing the conventional bounds of the RSC development model, taking commercial facility development to unexplored heights of service.

Become the global leader in environmentally managed mall developmentÆON Mall will promote sustainability through mall development by utilizing natural resources and energy with discretion for mini-mum environmental impact and maximum service quality.

l ÆON Mall will realize “zero-emission malls” to conserve global resources and establish a recycling society.

l ÆON Mall will reduce CO2 emissions to help prevent global warming.

l ÆON Mall will heighten environmental awareness among all employees, as well as among customers and partners.

Become everyone’s favorite mall via outstanding services filled with “surprises, excitement and fun”ÆON Mall will broadly serve customers to create malls that are universally embraced.

l ÆON Mall will satisfy the wants of our customers.

l ÆON Mall will also cater to the wishes of our customers.

l ÆON Mall will realize “surprises, excitement and fun” beyond all expectations by striving for the ideal services in facilities, convenience, tenant lineup and hospitality.

2017 GLOBAL 5

Group ProfileAs Japan’s largest retail organization, ÆON is involved in all aspects of the shopping mall business. Its transition to a pure holding company structure on August 21, 2008, will herald the start of a new growth phase. ÆON Mall is a core member of this group and responsible for all shopping mall de-velopment activities.

Contents

Corporate Profile ..................................... 1

Financial Highlights ................................ 3

Mid-term Management Plan ................ 4

Operational Identity ............................... 5

Shopping Mall Locations ....................... 7

Corporate Social Responsibility .......... 9

Organization ............................................10

ÆON Mall is a specialist shopping mall developer. Our philosophy of

putting the customer first has guided our continuing efforts to create

malls that enhance the quality of life, stimulate local economic activity

and contribute to community life and culture. ÆON Mall cooperates

in the building of communities that are exciting, fun to live in and vi-

brant. We will use our skills to bring new value and attractiveness to

communities, society and customers.

ChinaDevelopment

Supermarkets

Drugstores

Specialty stores

General finance

Strategic retailing

Non-store

Overseas

Service

GMS

ÆON Mall 2017 Target: GLA 10 Million m2

We have adopted a long-term vision for the future evolution of ÆON Mall. Under that vision, which we call “Global 5,” we aim to be ranked as one of the best five developers in the world by 2017. 2

To be considered the No.1 company/mall to work forThe future development of ÆON Mall hinges on the quality and spirit of its people.

No.1 company to work forl ÆON Mall will amass new values and creativity based on an open, free and lively

corporate culture of active learning that promotes innovation through inspiring professional challenges without regard to nationality, gender or age.

l ÆON Mall will laud the success of its employees and accept them for who they are, as well as provide first-rate treatment.

No.1 mall to work forl ÆON Mall will strive to create comfortable and satisfying workplaces in its malls,

including tenant specialty stores, where all employees can be proud to work.

• Customer First

Basic Philosophy

(1) ÆON Mall has consistently made the needs of customers and their communities the focus of all stages of its mall business, from planning, development and construction to leasing and operation.

(2) ÆON Mall and its partners have succeeded by ensuring that these “customer first” values are shared by everyone involved in mall operations, including tenant staff and cleaning and security personnel.

(3) The key to sustainable success is a value chain in which all ÆON members meet the expectations of their customers, thereby raising further expectations and again responding to those.

• ÆON Mall will create “Towns with Vitality.”

• Along with our partners, we will continue in our endeavors to create towns filled with vitality, to enrich the lives of their people.

Management Philosophy

* We define a town with vitality as a community that has gained a new and vibrant sense of energy following the creation of a new focal point for excitement, fun and lifestyle enhancement by ÆON Mall.

* Our partners are all stakeholders in town development, including local communities, government, non-profit organizations, tenant companies, suppliers, landowners and investors.

Corporate Slogan

ÆON Mall helps its customers to enhance their lifestyles by offer-ing new ideas through the creation of vibrant communities and creating centers for excitement, fun and lifestyle enhancement. That is our mission. We want our malls to become focal points in their communities. That is why every mall that we develop and operate is firmly rooted in the life of its community and is designed as a place full of fun and excitement to enhance the enjoyment of life.

Sharing a sense of lively participation

3 4

Financial Highlights Mid-term Management Plan

Revenues

Operating income

Ordinary income

Net income

Earnings per share (¥)*

ROE (%)

ROA (%)

Total assets

Equity

Equity ratio (%)

Book value per share (¥)*

Interest-bearing debt

Interest-bearing debt/total assets (%)

Note: A 1 : 2 stock split was implemented on February 21, 2007.

(¥ million)

¥ 96,806

31,642

30,681

17,439

115.63

19.2

10.0

377,661

122,734

32.4

675.44

84,242

22.3

¥ 62,252

21,879

20,800

12,180

203.00

22.4

9.6

233,057

60,034

25.6

995.01

79,858

34.3

¥ 52,903

18,510

17,419

10,369

171.99

23.4

8.9

202,132

49,103

24.3

817.53

65,127

32.2

20072006 2008Years Ended February 20,

Retail Sales ¥2 trillion

Revenues ¥200 billion

Ordinary Income ¥60 billion

• Expand new mall openings

• Enhance profitability of the mall business

• Accelerate international business expansion

• Undertake revitalization business

FY2010

FY2007 (2008/02)–FY2010 (2011/02)

Enhance Customer Attraction and Satisfaction

Initiatives to Achieve Mid-term Goals

Improve mall attraction and competitiveness: operating malls over the long term

Organizational structure aimed at enhancing profitability

Locality-based business organization

Strengthen marketing functions

Strengthen on-site support

1. Attract specialty stores with strong appeal

2. Aggressive tenant replacement, expansion and renewal

3. Enhance service functions

4. Operational support for tenants to improve their sales

5. Strengthen cost performance based on ‘best practices’

6. Establish new operational know-how

The new ÆON Mall Co., Ltd. was created from the merger with Diamond City Co., Ltd. on August 21, 2007. Data

for Diamond City are not included in the figures above prior to the year ended February 2008, which includes

second-half figures for the former Diamond City. For 2009, we are predicting a substantial increase in both rev-

enues and income, resulting from the accelerated opening of new malls in Japan and overseas, as well as the

renewal of our existing outlets.

Revenues (¥ million)

Net income (¥ million)

Ordinary income (¥ million)

ROE/ROA (%)

0

20,000

40,000

60,000

80,000

100,000

2006 2007 2008 2006 2007 2008

2006 2007 2008 2006 2007 2008

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

0

5

10

15

20

25

30

0

5,000

10,000

15,000

20,000

52,903

62,252

96,80630,681

17,419

20,800

10,36912,180

17,439

23.4

8.9 9.6 10.0

22.4

19.2

ROEROA

Expanding New Mall Openings Major shopping malls are becoming increasingly common in Japan. The key to success in this new environment will be the ability to create malls that can earn the support of consumers and exist in har-mony with local communities. We aim to strength-en our development structure, which allows us to develop malls that have strong regional roots and are in harmony with communities.

Accelerating International Business ExpansionWe will create infrastructure to support the interna-tional expansion of our mall business on a signifi-cant scale, especially in Asia. We are creating a new business model to support the development of an extensive chain of malls in Asia by accumulating op-erating know-how on site and by developing new mall formats.

Enhancing Mall ProfitabilityWe will continue to enhance our ability to attract quality tenants, expand and update our malls, and replace and add specialty stores to ensure that our store line-ups continue to reflect market trends. We will also strengthen our specialty store support and customer satisfaction initiatives. We aim to raise our profitability by attracting more customers, leveraging our growing scale to strengthen cost competitiveness and developing new mall operating know-how.

Revitalization BusinessConsumers are becoming increasingly selective, and malls are becoming the dominant shopping venues. In this environment, ÆON Mall is extending its store revitalization business, based on the latest trends in mall development. We have also made a new division, which is in charge of property man-agement, to expand the revitalization business.

2017GLOBAL 5

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Operational Identity

Development Concept

Our vision is to bring vibrancy and excitement to communities and to the lives of the people who live there. Our

ideal is the creation of malls that become popular community landmarks, and that enjoy continuing growth and

development because they are focal points for a wide-range of local activities. The first step in our approach to

community development is the formation of strong links with local government and society. We have a long record

of mall development in partnership with numerous local governments and communities, including schemes that

played a central role in regional and urban redevelopment and the establishment of new economic foundations.

Today we are applying our knowledge and experience to the development and operation of community-focused

malls in China and other overseas markets.

Business Model

ÆON Mall creates dual-anchor malls in which there are two or more anchors linked by malls of specialty stores. For

example, a mall anchored by both a general merchandise store and a department store can offer both day-to-day

necessities and shopping opportunities for special occasions—as well as restaurants, cinemas, specialty stores and

various other attractions. Malls developed by ÆON Mall provide goods, services and information to satisfy the de-

mands of today’s increasingly diverse lifestyles.

Business Flow

Tenant Management

Tenants who open stores in our malls are our valued partners. Our malls prosper and flourish only through the suc-

cess of these individual tenants. The development of closer links with tenants is vital to our efforts to create mall

environments that are surprising, exciting and fun and provide shoppers with new experiences every time they

visit. As a mall developer with a profound knowledge of the retail sector, ÆON Mall is able to offer its tenants an

extensive range of business support, including advice on sales area development and customer service training. We

also help our tenants to use automated systems for gathering, analyzing and managing sales data. This attention to

detail is reflected in strong demand for space in our malls.

Tailoring Malls to Their Communities

As Japan’s leading mall developer, ÆON Mall has undertaken development proj-ects in a wide range of formats, from suburban malls to large-scale regional malls on the fringes of major cities.

Tenant Recruitment

Our unique marketing and tenant net-working systems allow us to attract superior tenants, including leading-brand apparel retailers, well-known restaurants and sophisticated service companies. These activities keep our malls attractive.

Balanced Variety of Specialty Stores and Services

ÆON Mall facilities offer enjoyment and excitement to enhance every aspect of life, including specialty stores selling every-thing from fashion apparel to household goods, as well as restaurants and enter-tainment facilities, and service centers.

Extensive Tenant Support

ÆON Mall uses its experience as a highly successful mall developer and operator to provide its tenants with individual business counseling. We also offer regu-lar on-site guidance to help tenant stores enhance their ability to attract custom-ers and maximize their earnings.

Revitalizing Existing Malls

We systematically expand and update existing malls, periodically restructure their portfolios of specialty stores for maximum shopping enjoyment, and actively improve their facilities. Another priority is the planning and staging of events that help to attract customers.

Partnership Management

Specialty store associations at ÆON Mall allow all partners to work together to enhance the quality of malls. Activities include training programs and business information sharing at the national level through conferences for store managers.

ÆON Mall‘s foremost goal in mall development is not simply the construction of a new commercial facility, but

rather the enhancement of a community. ÆON Mall’s background as a specialist mall developer with extensive

knowledge of retailing and services is a key advantage. Our comprehensive approach to mall development and

operation encompasses all stages from market research to conceptualization, development, planning, construction,

tenant leasing and management. This business model reflects our origins in the retail sector and our commitment

to the creation of malls that will appeal to consumers. ÆON Mall contributes to lifestyle enhancement through the

creation of vibrant communities.

GMS

Anchor

Specialty store mall Department store

Anchor

Market researchConceptualization,

development, planning

Construction Tenant leasing Management

7 8

Shopping Mall Locations

New Malls

In the year ending February 2009, we plan to open four new malls. Most ÆON Mall facilities are established in response to requests from lo-cal communities. By developing and operating our malls in partnership with communities, we contribute to regional economic prosperity, in-cluding increased employment and higher tax revenues for local governments.

Expansion and Renewal

After our malls have been opened, we systemati-cally expand and update existing malls and pe-riodically restructure their portfolios of specialty stores to maintain the freshness of the facilities and ensure that consumers will continue to place a high value on their presence. In the year ending February 2009, we plan to expand and renew six malls.

Revitalization of Existing Malls

ÆON Mall Miyakonojo (under proposal) will be opened as a commercial complex consisting of a specialty store mall anchored by a Daiei store. We acquired the land and buildings previously owned by Daiei, with which ÆON Co., Ltd. has a business and capital partnership. We plan to de-velop this type of revitalization business increas-ingly in the future.

First Mall in Beijing

International Shopping Mall (under proposal) will be located about 40 minutes by car from central Beijing. ÆON Mall will operate it for Beijing ÆON Co., Ltd. under a contract for property management. We plan to apply experience gained through this project to the establishment of 50 of our own malls over the next 10 years.

In East Asia

We have started to develop our international activities, which we see

as a new source of future growth for ÆON Mall. We will establish a busi-

ness model to support the development of an extensive chain of malls

overseas by taking full advantage of our accumulated knowledge and

skills, including our site development know-how and our ability to at-

tract superior tenants. The first mall in China to be developed with the

involvement of ÆON Mall is International Shopping Mall (under pro-

posal), which will open in July 2008. Initially, we plan to concentrate

our management resources on China, and we have already opened

representative offices in Beijing and Shanghai. We aim to open malls in

a balanced range of locations in regions of particularly rapid economic

growth, including the area of northern China centering on Beijing, as

well as eastern China, where Shanghai is located. We plan to open 50

malls overseas by the year ending February 2018. Through our malls,

we will contribute to economic and cultural progress and the improve-

ment of living standards in local communities.

Huabei Northern China

HuadongEastern China

HuananSouthern China

Malaysia

In Japan

A profound knowledge of retailing has helped ÆON Mall to become

Japan’s leading specialist developer of shopping malls. By applying this

knowledge and taking full advantage of synergies with ÆON, we are

able to create shopping malls that are the most competitive in their ar-

eas. In November 2007, we opened ÆON Mall Hanyu, the first new de-

velopment following the merger with Diamond City. This was followed

by the opening of ÆON Mall Hinode. We have also recently expanded

and renewed two other malls. By February 2008, the number of malls

established by ÆON Mall throughout Japan had reached 46.

We will continue to apply our mall development skills to the

creation, expansion and renewal of malls under the concept of com-

munity building.

Expanded New Mall Openings

A mall network covering downtown metro-politan areas and local suburban areas—46 malls in 26 prefectures including Metro-politan Tokyo, Osaka and Kyoto.

East Japan Development Dept.

Chubu Development Dept.

West Japan Development Dept.

Kyushu Development Dept.

Construction Dept.

Planning Development Dept.

Revitalization Support Dept.

Tohoku Sales Dept.

Kita Kanto Sales Dept.

Minami Kanto Sales Dept.

Chubu Sales Dept.

Kinki Sales Dept.

Chugoku Shikoku Sales Dept.

Kyushu Sales Dept.

Property Management Sales Dept.

Marketing Dept.

SC Support Dept.

Sales Div.

First Tenant Leasing Dept.

Second Tenant Leasing Dept.

Third Tenant Leasing Dept.

Fourth Tenant Leasing Dept.

Tenant Leasing Div.

Management Planning Dept.

International Business Planning Dept.

Beijing O�ce

Shanghai O�ce

Strategy Div.

Finance and Accounting Dept.Finance and Accounting Div.

CSR Promotion Dept.

Personnel and General A�airs Dept.

Systems Dept.

Administration Div.

Management Auditing Dept.

J-SOX Project Team

Development Div.

General Meeting of Shareholders

Board of Auditors

Board of Directors

Chairman

President and CEO

Director and Advisor

General Meeting of Shareholders

Auditors/Board of AuditorsBoard of Directors Independent Auditors

President and CEO O�ces

Management Auditing Dept.

Risk Management CommitteeExecutive Committee Analyses risk situations and workscontinuously to eliminate risks.Also, submits opinions to the President and CEO, and discusses risk management policy.

<Business Execution Organization>

Appointment/dismissal/

determination of remuneration

Appointment/dismissal/determination of remuneration

Appointment/dismissal

Audit

Audit Report

ReportAppointment and supervision Submission of important matters Accounting audit

Discusses important management matters,submits opinions and reports to the President and CEO.

Audit of operations

9 10

Corporate Social Responsibility

Organization

Environment

Our aim is to create malls that are kind to all manner of people as well as the environment, through wide-ranging

initiatives centering on the reduction of environmental loads, environment protection and the prevention of environ-

mental contamination. In every mall that it creates, ÆON Mall strives to conserve energy and resources and minimize

the impact on residential environments. In addition, environmental education is provided for specialty store employees

as part of mall-wide efforts to maintain environmentally responsible mall operations. We also continue to implement

extensive tree-planting projects in Japan and overseas, including the “ÆON Hometown Forests” program.

Structure of Corporate Governance System

In line with our commitment to ethical conduct, ÆON Mall’s corporate governance structure upholds a high level of management

transparency throughout the company’s business operations.

The ÆON Hometown Forests Program

At every new mall we open, ÆON plants indigenous trees in partnership with its customers.

Large-scale Ice Thermal Storage Systems

We have introduced a variety of environ-mentally responsible technologies, includ-ing systems designed to utilize natural energy and reduce CO2 emissions.

Waste Measurement and Sorting

All waste in our malls is carefully sorted. Where possible, waste is recycled.

Community

Every community needs focal points for community life. ÆON Mall aims

to create malls that can fulfill this role by equipping them to serve as com-

munity centers. Parking lots and central courts are made available for vari-

ous community events. Other spaces in our malls are used extensively as

venues for a wide variety of community activities. In addition, malls are

important focal points for social contribution activities, such as blood drives

and the registration of bone marrow donors.

Universal Design

ÆON Mall defines universal design (UD) as a method for ensuring that fa-

cilities are safe, secure and amenable for all people, regardless of age or

physical condition. In addition to UD-based enhancements to elevators,

restrooms, parking lots, information displays and other physical facilities,

we also plan to use UD concepts to improve mall hospitality through

enhancements to all areas of service, such as deliveries and information

access for people who cannot leave their homes.

Universal Design Facilities

Restroom entrance signs are designed for easy recognition, and the toilets have been enhanced to facilitate use by all customers.

Support for Local Events

We make parking lots and other spaces available for community concerts, produce displays and other community events.

ÆON Mall Co., Ltd. Overview

Company Name : ÆON Mall Co., Ltd.

Headquarters : 1-5-1 Nakase, Mihama-ku, Chiba-shi, Chiba 261-8539, Japan TEL: 81-(43)-212-6450 FAX: 81-(43)-212-6737

Representative : Noriyuki Murakami, President and CEO

Date Established : Nov. 12, 1911

Capital Stock : ¥16.6 billion (as of Feb. 20, 2008)

Shares of Common Stock Issued : 181,127,507 (as of Feb. 20, 2008)

Business Activities : Development of large-scale shopping malls, tenant leasing and operation/management

Number of Shopping Malls : 46 (as of Feb. 20, 2008)

Number of Employees : 668 (as of Feb. 20, 2008)

Offices : Tokyo Office Toyosu TK Building 4F, 1-9-4 Edagawa, Koto-ku, Tokyo 135-0051, Japan

Tohoku Office ÆON Mall Morioka, 4-7-1 Maegata, Morioka-shi, Iwate 020-0148, Japan

Nagoya Office Daitokai Building 9F, 3-22-8 Meieki, Nakamura-ku, Nagoya-shi, Aichi 450-0002, Japan

Osaka Office Kurabo Annex Building 12F, 2-4-11 Kyutaromachi, Chuo-ku, Osaka-shi, Osaka 541-0056, Japan

Fukuoka Office Yamazen Building 3F, 2-9-11 Hakataekiminami, Hakata-ku, Fukuoka-shi, Fukuoka 812-0016, Japan

Beijing Office Room 1201 East Ocean Center, No. 24A Jian Guo Men Wai Avenue Chaoyang District, Beijing 100004, China

Shanghai Office Metro Plaza Room No. 2606-2607 No. 555, Loushanguan Road, Changning District, Shanghai, PRC (200051)

URL : http://www.aeonmall.com

Chairman

President and CEO

Senior Managing Director

Senior Managing Director

Managing Director

Managing Director

Managing Director

Managing Director

Managing Director

Director and Advisor

Director

Director

Director

Director

Director

Director

Director

Standing Auditor

Auditor

Auditor

Auditor

Naoki Hayashi

Noriyuki Murakami

Chitoshi Yamanaka

Yoichi Kimura

Tetsuji Nishio

Hidehiro Hirabayashi

Yukio Konishi

Kenzo Fujitsuka

Yoshishige Ikeda

Motoya Okada

Hideaki Onishi

Yoichi Terazawa

Hiroshi Iwamoto

Masato Murai

Fujio Takahashi

Masaru Soma

Kaoru Iwamoto

Masaru Yokoi

Masato Nishimatsu

Aritsune Hayashi

Takao Okazaki

Directors and Auditors

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