financial results for the first quarter of fy2015 (march 1, 2015 …€¦ · first quarter fy2015...
TRANSCRIPT
(東証1部:8905) July 8, 2015
ÆON MALL Co., Ltd.(TSE: 8905)
Financial Results for the First Quarter of FY2015(March 1, 2015 – May 31, 2015)
1
Contents
1. Summary of Financial Results for the First Quarter of the Fiscal Year Ending February 2016 ● Overview of Consolidated Results ··················································································································································· P3● FY2015: New Mall Openings in Japan ··········································································································································· P4-6● Revitalizing Existing Malls / Changes in Vacancy Rate ························································································································· P7● Monthly Data (Existing 63 malls, on a year-on-year basis) ···················································································································· P8● Year-on-Year Changes in Sales at Specialty Stores in Aeon Malls by Segment (Year-on-year changes in 63 existing malls) ······························ P9● Business in China: Malls in the Beijing and Tianjin Areas ··················································································································· P10● FY2015: New Mall Openings in China ············································································································································· P11● FY2015: New Mall Openings in the ASEAN Region··························································································································· P12● Details of Changes in Profit and Loss ············································································································································· P13● Summary of Income Statement ····················································································································································· P14● Summary of Balance Sheets ························································································································································ P15● Summary of Cash Flows ······························································································································································ P16 2. Future Projects ● FY2015: New Malls Scheduled to Open ·········································································································································· P18● Business in Japan: New Business Locations ··································································································································· P19● Business in Japan: Increasing the Earning Power of Existing Malls ······································································································ P20● Business in Japan: Development/Entry into New Market (Foreign Visitors) ···························································································· P21● Overseas Business ···································································································································································· P22● Business in China ······································································································································································ P23● Business in the ASEAN Region ····················································································································································· P24● Performance Plan (Consolidated) ·················································································································································· P25 3. Medium-Term Management Plan (FY2014 – FY2016) ● Medium-Term Management Plan: Newly-Opened Malls/Business Data/Capital Expenditure ······································································ P27● Medium-Term Management Plan: Financing ···································································································································· P28● Use of REIT as a Growth Tool ······················································································································································· P29
22
1. Summary of Financial Results for the First Quarter of the
Fiscal Year Ending February 2016
3
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Review
Overview of Consolidated Results(Million yen, %)
1Q of FY2015(Actual)
1Q of FY2014(Actual)
Year-on-year
Operating revenue 55,815 48,995 113.9Operating costs 39,373 33,841 116.3
Gross profit 16,441 15,154 108.5Selling, general and administrative expenses 5,325 5,195 102.5
Operating income 11,116 9,958 111.6Ordinary income 10,812 9,628 112.3Net income 5,058 5,575 90.7Net income per share (yen) 22.20 24.47 –
*2 As of November 1, 2013 the Company signed a contract to undertake the management and operation of large commercial facilities of Aeon Retail Co., Ltd. in 69 locations.
Number of new malls opened*1
Number of malls(as of May 31, 2015)
Japan 2 141 *2
China 1 7Cambodia 0 1Vietnam 0 2
Indonesia 1 1Total 4 152
*1 The number of malls that opened during the period between March 1, 2015, and May 31, 2015
Earnings from overseas mallsOperating revenue Up ¥1,781 million (up 147.3% year on year)Gross Profit Up ¥148 million (Result: -¥267 million)
5 existing overseas malls (Jan. – May)China (4 malls)
Sales at specialty stores Up 28.0% year on yearVietnam (1 mall)
Sales at specialty stores Up 13.7% year on year
< Business overview of malls in Japan > 63 existing malls
Sales at specialty storesDown 4.9% year on year
Operating revenue Down ¥955 million (down 2.1% year on year)Gross Profit Down ¥440 million (down 3.0% year on year)
9 new malls<FY2014: Seven malls, FY2015: Two malls>
Operating revenue Up ¥5,768 million (up 381.9% year on year)Gross Profit Up ¥1,316 million (up 146.9% year on year)
< Business overview of overseas malls >
4
FY2015 (March 1, 2015 – February 29, 2016): New Malls
Indonesia
Aeon Mall Long Bien (Hanoi)
Aeon Mall Asahikawa Ekimaeopened on March 27 (Hokkaido)
Aeon Mall Okinawa Rycomopened on April 25 (Okinawa Pref.)
Aeon Mall Tonami (Toyama Pref.)
Aeon Mall Tokoname(Aichi Pref.)
Aeon Mall Shijonawate(Osaka Pref.)
Aeon Mall Suzhou Yuanqu Hudongopened on May 29 (Suzhou, Jiangsu)
Aeon Mall Wuhan Jingkai(Wuhan, Hubei)
Aeon Mall Beijing Fengtai(Fengtai, Beijing)
Aeon Mall Guangzhou Panyu Square
(Guangzhou, Guangdong)
Aeon Mall Suzhou Xinqu(Suzhou, Jiangsu)
VietnamCambodia
★: Opened in 1st quarter●: Scheduled to open in 2nd quarter or thereafter Aeon Mall BSD CITY
opened on May 30
ASEAN
China
Aeon Mall Hangzhou Liangzhu Xincheng
(Hangzhou, Zhejiang)
5
FY2015: New Mall Openings in Japan
Located in a building complex connected directly to JR Asahikawa Station, which is the portal to Asahikawa City. It opened as one of the commercial facilities contributing to the promotion of the basic plan for the revitalization of the central urban area of Asahikawa City that was developed by the city government.
Besides offering 48 local stores from Hokkaido (of which 11 stores have their head offices in Asahikawa City), the mall distributes information on surrounding tourist facilities, sells duty-free products (some stores), and offers free Wi-Fi spots, etc. to help promote the revitalization of tourism in northern Hokkaido.
The tenants total 130 stores, including 22 with their first store in Hokkaido and 43 with their first store in Asahikawa City. Approximately half of all the tenants have their first store in Asahikawa City.
Food Product Area
Food Court
Connected directly to the station square, this area has become the face of the mall. This large food and dining area comprises 19 tenants, including cafés, confectionery stores, light meals, and prepared food. In addition to 10 tenants with their first store in Hokkaido, local Asahikawa and Hokkaido souvenir stores and local well-known stores operate in the area.
A food court with 750 seats is connected directly to the station concourse. This area not only provides dining options, but also meets a variety of demands unique to a train station, such as a place in which to spend time while waiting for a bus or train. The area consists of 11 tenants, including those with their first store in Hokkaido and local companies.
Food product retailers and a food court are collectedon the 1st floor, providing a large food area.
Aeon Mall Asahikawa Ekimae Location: 7-2-5 Miyasita-dori, Asahikawa-shi, Hokkaido Opening: March 27, 2015 Site area: 28,300 m2
(incl. approx. 9,800 m2
under the railway line) Floor area: 47,200 m2
(approx. 76,700 m2 for the entire facility)
Total leasing area: 28,800 m2
Parking: 900 cars Specialty stores: 130 stores
Features of the mall
< Efforts for Tourism Promotion >1. Distributes information on local attractionsThe information counter on the first floor operates in cooperation with Asahikawa’s comprehensive tourism information center (Asa Terasu). It provides information on the areas around Asahikawa Station, local tourist sites, and train and bus arrivals and departures. A large 300-inch screen provides tourist information. 2. Provides hospitality to inbound (foreign) visitorsAeon Mall Asahikawa Ekimae and 10 specialty stores sell duty-free products. The mall plans to increase the number of such stores in the future. Five-language touch-panel screens are used for the mall floor map.
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Review
6
Opened as a full-scale resort mall in Okinawa, one of Japan’s most popular resorts that was visited by over 7 million tourists from both inside and outside Japan in 2014.
The mall was opened as the core facility of the Awase Land Adjustment Project in Kitanakagusuku, a model case of the early commercialization of land formerly used as a US military base.
The location attracts visitors from all over Okinawa Island by taking advantage of accessibility through the interchanges of main roads and highways in the neighboring area.
A total of 235 tenants, including 49 with their first store in the Kyushu-Okinawa area and 70 with their first store in Okinawa, operate in the mall. The mall offers products and services in four categories: “Gourmet & Shopping,” “Entertainment & Culture,” “Spaces,” and “Services.”
FY2015: New Mall Openings in Japan
The Company has obtained its first naming rights in Japan.
Services
Entertainment & Culture Gourmet & Shopping
Spaces
The Company has obtained the rights to name the three streets on the north, east, and south sides of the mall for the next five years.
Counter for duty-free application started operation
The Duty Free Counter for duty-free shopping is located at Tourist Information on the 1st floor, and commenced operation on May 18. Including those stores already providing services as general duty-free shops, a total of more than 70 stores in the mall have become duty-free shops to provide enhanced convenience and comfort for tourists from outside Japan.
Aeon Mall Okinawa Rycom Location: Awase Land Adjustment Program Area in Kitanakagusuku,
Nakagami-gun, Okinawa Pref. Opening: April 25, 2015 Site area: 175,000 m2
Floor area: 160,000 m2
(incl. a multistory parking garage) Total leasing area: 78,000 m2
Parking: 4,000 cars Specialty stores: 235 stores
Features of the mall
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Review
The mall includes “RycomAquarium,” a massive decorative aquarium with a capacity of more than 100 tons presented by Okinawa Churashima Foundation, and event venues such as “Rycom Court Air” and “Rycom Court Sky” where concerts and traditional art performances are presented every day of the year.
Rycom Welcome Station operates in an area of approx. 1,600 sq. meters, offering travel services to tourists from inside and outside Japan. In addition, services for foreign tourists, such as Wi-Fi connections in all buildings and multilingual floor guides, have been dramatically increased.
The mall creates a space with a resort feeling unique to Okinawa with, for instance, RycomVillage designed by the internationally renowned Ishihara Kazuyuki Design Laboratory and a pair of Shisa statues placed at the Welcome Gate.
This specially enhanced restaurant area is the largest gourmet zone in Okinawa, with a total of 5,500 seats in 60 restaurants offering a variety of local and international dishes.
Aeon Mall Minami St.
Aeon Mall Higashi St.
Aeon Mall Okinawa Rycom
Aeon Mall Arrival St.
7
FY20120.40%
FY20130.34%
FY20140.46%
FY20120.20%
FY20130.20%
FY20140.22%
(Tsubo)
(Tsubo)
FY2015Q1
0.57%
FY2015Q1
0.34%
96651219Total
2110Outlets
463547mori
4829712kaze
TotalFirst in Saitama Pref
First in KantoFirst in Japan
3528970193Total
14212Outlets
183564285mori
155332696kaze
TotalRenovatedRelocatedNew Store
0
Shopping malls Location Date reopened Tenants 1. New tenants*
2. Relocations &
refurbishments
No. of tenants on reopening (1 + 2)
Aeon Mall Takaoka Takaoka City, Toyama Prefecture March 6 130 17 (10) 32 49
Aeon Mall Itami Itami City, Hyogo Prefecture March 20 150 14 ( 6 ) 47 61
Aeon Mall Kusatsu Kusatsu City, Shiga Prefecture March 20 190 43 (26) 88 131
Aeon Mall Miyakonojo-Ekimae
Miyakonojo City, Miyazaki Prefecture April 17 100 10 ( 2 ) 31 41
Aeon Lake Town Kaze Koshigaya City, Saitama Prefecture April 24 230 96 (48) 59 155
* Figures in parentheses indicate the first store openings in the relevant prefectures.
Aeon Lake Town (opened in Oct. 2008)
A total of around 430 stores, or more than 60% of all 710 stores, are scheduled to be renewed in Phases 1 and 2. 352 stores including the anchor tenant Aeon Lake Town have been renewed in Phase 1, and around 80 stores will be renewed in Phase 2 in the Autumn of 2015.
< Example of Large-scale Renewal >
Apr. 24, 2015: 1st phase renewal opening
No. of stores renewed in Phase 1: 352 in total
No. of tenants opening their first store in the region
Average vacancy rate<Vacant Floor Area and Vacancy Rate>
Average vacancy rate<Real Vacant Floor Area and Vacancy Rate>
* The real vacant floor area is the vacant floor area less the area where the opening of new stores has been determined.
0
2,000
4,000
6,000
8,000
FY2012 FY2013 FY2014 FY2015Q1
0.00%
0.25%
0.50%
0.75%
1.00%
Vacant Floor Area Vacancy Rate
Revitalizing Existing Malls Changes in Vacancy RateChanges in Vacancy Rate
0
2,000
4,000
6,000
8,000
FY2012 FY2013 FY2014 FY2015Q1
0.00%
0.25%
0.50%
0.75%
1.00%
Real Vacant Floor Area Vacancy Rate
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Review
8
Monthly Data (Existing 63 malls, on a year-on-year basis)
(Reference) Monthly Data in FY2014 (Existing 58 malls, on a year-on-year basis)
Monthly March April May 1stquarter
Sales 84.3% 101.1% 103.0% 95.1%
No. of customersthrough checkout 88.9% 97.5% 99.8% 95.1%
Average customerTransaction 94.8% 103.8% 103.2% 100.0%
No. of holidays -2 ±0 +2 ±0
After adjustment forweekends/holidays 88.8% 101.1% 98.1% 95.3%
No. of cars parked 94.4% 101.4% 101.9% 99.1%
No. of visitors 91.7% 99.4% 102.7% 97.7%
Monthly March April May 1stquarter June July August 2nd
quarter 1st Half September October November 3rdquarter December January February 4th
quarter 2nd half Total
Sales 112.8% 95.8% 100.0% 103.3% 95.4% 95.2% 99.0% 96.4% 100.0% 96.3% 94.5% 100.8% 97.3% 94.9% 94.4% 99.6% 95.8% 96.5% 98.2%
No. of customersthrough checkout 104.0% 97.7% 102.2% 101.4% 96.0% 94.0% 98.1% 96.1% 98.7% 94.1% 94.9% 100.5% 96.5% 95.2% 93.9% 99.5% 95.9% 96.2% 97.4%
Average customerTransaction 108.5% 98.1% 97.9% 101.9% 99.4% 101.3% 100.9% 100.5% 101.3% 102.3% 99.5% 100.3% 100.8% 99.6% 100.6% 100.1% 100.1% 100.4% 100.8%
No. of holidays ±0 ±0 +1 +1 -1 ±0 +1 ±0 1 -1 ±0 +2 +1 -1 ±0 ±0 -1 ±0 +1
After adjustment forweekends/holidays 112.8% 95.8% 98.6% 102.8% 97.0% 95.2% 97.0% 96.5% 99.6% 99.4% 94.5% 96.0% 96.6% 97.3% 94.4% 99.6% 96.8% 96.7% 98.1%
No. of cars parked 102.0% 97.6% 100.3% 100.1% 97.0% 95.7% 99.6% 97.5% 98.7% 95.9% 96.4% 99.8% 97.5% 96.4% 96.4% 102.5% 98.1% 97.8% 98.3%
No. of visitors 103.0% 97.2% 100.6% 100.3% 96.1% 95.8% 100.0% 97.4% 98.8% 95.1% 95.4% 101.1% 97.2% 95.0% 95.3% 102.0% 97.0% 97.1% 98.0%
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Review
9
(Reference) Monthly Data in FY2014 (Existing 58 malls, on a year-on-year basis)
Year-on-Year Changes in Sales at Specialty Stores in Aeon Malls by Segment (Year-on-year changes in 63 existing malls)
March April May 1st quarter June July August 2nd quarter 1st Half September October November 3rd quarter December January February 4th quarter 2nd Half Total
All specialty stores 112.8% 95.8% 100.0% 103.3% 95.4% 95.2% 99.0% 96.4% 100.0% 96.3% 94.5% 100.8% 97.3% 94.9% 94.4% 99.6% 95.8% 96.5% 98.2%
Large specialty stores subtotal 128.3% 90.5% 95.8% 105.4% 94.5% 96.7% 97.6% 96.3% 100.8% 94.3% 91.2% 102.0% 95.9% 92.9% 91.1% 88.9% 91.3% 93.3% 97.0%
Apparel 105.6% 95.4% 98.6% 100.1% 94.2% 93.3% 98.0% 94.9% 97.5% 99.4% 96.1% 99.9% 98.5% 94.8% 92.9% 100.7% 95.1% 96.7% 97.1%
Accessories 125.5% 92.2% 94.5% 105.2% 90.3% 95.3% 100.3% 95.3% 100.3% 93.7% 92.5% 104.3% 96.8% 93.1% 95.4% 99.3% 95.3% 96.0% 98.2%
Miscellaneous goods 118.3% 94.0% 97.2% 104.1% 95.0% 97.6% 99.8% 97.5% 100.9% 96.1% 96.5% 101.7% 98.2% 94.2% 96.7% 98.6% 96.2% 97.1% 99.0%
Drinking and eating 104.0% 99.8% 103.6% 102.5% 96.8% 96.9% 100.8% 98.4% 100.4% 95.0% 96.4% 104.2% 98.5% 95.3% 95.9% 102.1% 97.3% 97.9% 99.2%
Amusement 109.2% 110.1% 126.7% 114.8% 113.9% 79.4% 100.4% 95.8% 104.6% 92.9% 81.6% 84.9% 86.9% 100.7% 91.0% 101.0% 97.0% 92.3% 98.8%
Services 107.1% 96.0% 98.6% 100.8% 97.7% 98.9% 94.9% 97.2% 98.8% 94.6% 92.5% 96.3% 94.5% 92.7% 94.8% 101.2% 96.0% 95.2% 97.1%
Specialty stores subtotal 110.8% 96.4% 100.5% 102.9% 95.5% 94.9% 99.2% 96.5% 99.7% 96.6% 94.9% 100.7% 97.5% 95.1% 94.9% 101.2% 96.5% 96.9% 98.3%
March April May 1st quarter
All specialty stores 84.3% 101.1% 103.0% 95.1%
Large specialty stores subtotal 72.1% 103.9% 104.1% 90.4%
Apparel 86.3% 99.3% 102.6% 95.4%
Accessories 77.6% 104.0% 106.7% 93.2%
Miscellaneous goods 83.7% 104.8% 105.1% 96.0%
Drinking and eating 91.4% 98.2% 102.0% 96.9%
Amusement 86.6% 92.0% 93.5% 90.6%
Services 91.7% 104.0% 103.9% 99.4%
Specialty stores subtotal 86.1% 100.8% 102.9% 95.7%
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Review
10
Location: No.1 Bei Qing Road, Changping District, Beijing
Opening: November 7, 2008(Switched from a project management contract signed
at the time of opening to a master lease in September 2011)
Site area: 89,000 m2
Total leasing area: 53,000 m2
Parking: 3,000 cars Specialty stores:100Anchor store: AEON (GMS)
北京市中心地
NN
BeijingAeon Mall Beijing International Mall
Aeon Mall Tianjin Zhongbei
Aeon Mall Tianjin TEDA
Central commercial
district
17 km 44 km
ÆON MALL Tianjin Zhongbei
ÆON MALLTianjin TEDA
ÆON MallTianjin
Meijiang
Aeon Mall Tianjin Meijiang
Total of Jan. –Dec., 2014
Jan. – May., 2015
Retail sales in China *1 112.0% 110.4%
Sales at Aeon Mall specialty stores *2 117.9% 128.0%
No. of visitors to Aeon Malls *2 121.4% 114.2%
Tianjin
Tianjin Tianjin
<Location>
Beijing city
center
Location: No. 29 East Road, Tianjin Economic-Technological Development Area
Opening: October 29, 2010Site area: 98,000 m2
Total leasing area: 55,000 m2
Parking: 2,500 cars Specialty stores: 130 Anchor store: AEON (GMS)
Location: No. 1 Fu Sheng Dao, Xi Qing Qu, TianjinOpening: April 28, 2012Site area: 163,000 m2
Total leasing area: 62,000 m2
Parking: 3,700 cars Specialty stores: 150 Anchor store: AEON (GMS)
Location: 111 You Yi Nan Lu, Tianjin XiqingEconomic Development Area, Xiqing,Tianjin, PRC
Opening: January 3, 2014Site area: 75,300 m2
Total leasing area: 63,400 m2
Parking: 2,400 cars Specialty stores: 170 Anchor store: AEON (GMS)
<Tianjin Area>
*1 Source: National Bureau of Statistics of People's Republic of China
Retail sales in China and year-on-year comparison of existing malls
< Changes in Sales at Specialty Stores in Existing Malls >Aeon Mall Beijing International Mall Aeon Mall Tianjin TEDA
Aeon Mall Tianjin Zhongbei Aeon Mall Tianjin Meijiang
Business in China: Malls in the Beijing and Tianjin Areas
*2 Calculated for three malls from January to December 2014 and four malls from January to May 2015.
80.0%
100.0%
120.0%
140.0%
160.0%
180.0%
1-6月 7-12月 1月 2月 3月 4月 5月
80.0%
100.0%
120.0%
140.0%
160.0%
180.0%
1-6月 7-12月 1月 2月 3月 4月 5月
2014 2015 2014 2015
80.0%
100.0%
120.0%
140.0%
160.0%
180.0%
1-6月 7-12月 1月 2月 3月 4月 5月
80.0%
100.0%
120.0%
140.0%
160.0%
180.0%
1-6月 7-12月 1月 2月 3月 4月 5月
2014 2015 2014 2015
Jan.-Jun. Jul.-Dec. Jan. Feb. Mar. Apr. May. Jan.-Jun. Jul.-Dec. Jan. Feb. Mar. Apr. May.
Jan.-Jun. Jul.-Dec. Jan. Feb. Mar. Apr. May. Jan.-Jun. Jul.-Dec. Jan. Feb. Mar. Apr. May.
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Review
11
Aeon Mall Suzhou Yuanqu Hudong (7th Aeon Mall in China)
Suzhou Industrial Park, where this mall is located, has been developed as an important economic and technological joint project between China and Singapore since 1994, and is expected to become even larger in the future.
A total of 230 stores operate in the mall, including 15 with their first store in Suzhou City and 22 stores of Japanese companies.
In terms of the physical aspect, the mall building’s exterior uses a modern urban design. The entrance includes a 35-meter-high globe dome as a new symbol of the area.
The mall uses the latest universal design and environmentally friendly facilities, including photovoltaic power generation of the largest scale in Jiangsu Province. It received a two-star rating in the Green Building Evaluation Standard following Aeon Mall Suzhou Wuzhong, the first Aeon Mall in Suzhou.
* Green Building Evaluation Standard: The environmental assessment standard for buildings certified by China’s Ministry of Construction with the aim of protecting the global environment, maximizing the effective use of global resources, preventing environmental pollution, etc. The two-star rating is a rating based on this system.
It is the first mall that the Company has funded itself through owning the mall’s land and buildings in China.
FY2015: New Mall Openings in China
23km
21km
20km
Suzhou Xinqu
Suzhou YuanquHudong
Dominant openings of malls in the Suzhou area
1F Fashion & Gourmet
2F Chinese Gourmet & Interior Goods 3F Kids & Entertainment
◆ CoCo Ichibanya
◆ Sukiya◆ SPORTS DEPO
+ GOLF5 ◆FLAXUS TOKYO
◆ collect point
◆ earth music&ecology
◆ NITORI ◆ Kids’ Zone
A New Symbol of the Town, the Entrance Dome A globe dome with a sense of floating and transparency. It emits light (LED) and sound, and events linked to the light and sound are held.
Characteristics of each floor
Features of the mall
Location:238 Suzhou Industrial Park, Su Zhou, Jiangsu Opening: May 29, 2015 Site area: 99,300 m2
Floor area: 218,000 m2
Total leasing area: 75,000 m2
Parking: 3,000 cars Specialty stores: 230 stores
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Review
Land for the third mall (Aeon Mall Suzhou Xinqu) has already been acquired in the Suzhou area. The success of Aeon Mall Suzhou Wuzhong, the first Aeon Mall in Suzhou that opened in April 2014, helps to increase Aeon’s recognition in the area, giving the Company advantages in terms of leasing and branding.
Suzhou Wuzhong
12
Aeon Mall BSD CITY (1st Aeon Mall in Indonesia)
Located in the BSD district, southwest of Jakarta. The mall consists of 280 stores, including 24 with their first store in Indonesia and 47
stores of Japanese companies. The mall operates the largest restaurant area in the BSD district, which includes a food court serving Indonesian home cooking and popular Ramen Village ramen restaurants from Japan (approx. 40% of the total area).
With the concept “For Your Smart Living,” this is the largest suburban full-scale shopping mall in the area, where all needs for food, clothing, and shelter can be satisfied in one location.
FY2015: New Mall Openings in the ASEAN Region
Aeon Mall BSD CITY
Central Jakarta city
Approx. 25km
The district is located in the southwestern part of Jakarta, which has been fully developed by Sinarmas Land, the largest real estate developer in Indonesia, since 2003. The area is expected to grow rapidly in the near future with plans to build housing, industrial facilities, schools, a hospital, golf courses, sports facilities, and more.
BSD CITY
3rd phase BSD
1st phase BSD
2nd phase BSD
Aeon Mall BSD CITY
◆ Food Carnival
The largest food court in Banten Province, with 1,100 seats at 33 restaurants in an area with a ceiling height of around 10 meters. An event stage is located in the center.
◆ Ramen Village
Seven ramen restaurants are included in response to the popularity of ramen in Indonesia.
◆ Travel Lounge
It was introduced to meet increasing demand for travel in Indonesia and provide information on Japanese culture. It promotes both Indonesian and Japanese cultures by introducing tourist sites in Japan, holding events, etc.
◆ Kids’ World
Children's amusement facilities and popular local toy stores are gathered in this area.
Location: Bsd City, Banten, Tangerang, Republic of Indonesia
Opening: May 30, 2015 Site area: 100,000 m2
Floor area: 177,000 m2
Total leasing area: 77,000 m2
Parking: 2,300 motorbikes,2,100 cars
Specialty stores: 280 stores
Features of the mall
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Review
13
63 exiting mallsin Japan
New mallsin Japan
Overseas malls
Overseas malls Other
Overseas malls SG&A expenses
44,78143,826
-955
1,5107,278
+5,768
Gross profit and operating income by segment
Operating revenue(+6,819 million yen)
Gross Profit(+1,287 million yen)
Japan Japan
China
ASEAN
China ASEAN
2,990 1,209 1,719 1,494
+1,781 +225
Operating income(+1,157 million yen)
14,164 14,604
2,212 896
-267 -415
331 69
-5,325-5,195
-440
+1,316
+148
+262
-130
Operating costs and SG&A(+5,661 million yen)
29,662 30,176
5,065614 3,257 1,625 1,388 1,425
5,325 5,195
-514
+4,451 +1,632-37
+130
Operating income(+1,157 million yen)
16,709 15,569
-296 -390
29
-25
12,152 10,887
-834-697 -201 -231
+1,139
+94
+54
+1,264
-137 +30
当期
前期
当期
前期
当期
前期
当期
前期
当期
前期
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Details of Changes in Profit and Loss
FY2015
FY2014FY2015
FY2014
FY2015
FY2014FY2015FY2014
FY2015FY2014
63 exiting mallsin Japan
New mallsin Japan
Other
SG&A expenses
63 exiting mallsin Japan
New mallsin Japan Other
Consolidated (¥ million) Q1 of FY2015 Ratio Q1 of FY2014 Ratio YoYGrowth Change Comments
Operating Revenue 55,815 100.0% 48,995 100.0% 113.9% 6,819
- Nine newly-opened malls in Japan - 63 existing malls in Japan - Overseas malls - Other
+¥5,768 million-¥955 million
+¥1,781 million+¥225 million
Operating costs 39,373 70.5% 33,841 69.1% 116.3% 5,531
- Nine newly-opened malls in Japan - 63 existing malls in Japan - Overseas malls - Other
+¥4,451 million-¥514 million
+¥1,632 million-¥37 million
Gross profit 16,441 29.5% 15,154 30.9% 108.5% 1,287
- Nine newly-opened malls in Japan - 63 existing malls in Japan - Overseas malls - Other
+¥1,316 million-¥440 million+¥148 million+¥262 million
SG&A expenses 5,325 9.6% 5,195 10.6% 102.5% 130
Operating income 11,116 19.9% 9,958 20.3% 111.6% 1,157
Non-operating profits 459 0.8% 364 0.8% 126.3% 95 - Compensation paid by departing tenants - Gain on foreign exchange (from FY2014)
+¥80 million-¥89 million
Non-operating expenses 763 1.3% 694 1.4% 109.9% 68 - Interest paid - Loss on foreign exchange (from FY2015)
+¥23 million+¥127 million
Ordinary income 10,812 19.4% 9,628 19.7% 112.3% 1,184 - Non-operating profits increased ¥27 million year on year
Extraordinary gains - - 199 0.4% - (199) - [FY2014] Gain on sale of guarantee deposits ¥186 million
Extraordinary losses 1,667 3.0% 230 0.5% 723.3% 1,437
- [FY2015] Provision for store closure(612 for impairment loss and 686 provision for loss on store closure)
- [FY2015] Loss on retirement of fixed assets - [FY2014] Loss on leasing contract cancellation
¥1,298 million
¥369 million¥230 million
Income before income taxes 9,145 16.4% 9,597 19.6% 95.3% (452) - Extraordinary gain decreased ¥1,637 million year on year.
Income taxes 4,350 7.8% 4,015 8.2% 108.3% 334 - [FY2015] Reversal of deferred tax assets due to change in tax rate (reduced) +¥721 million
Minority interests (264) (0.5%) 6 0.0% - (270)Net income 5,058 9.1% 5,575 11.4% 90.7% (516)
14
* Nine newly operated malls in Japan (FY2014: Seven malls, FY2015: Two malls)
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Summary of Income Statement
(¥million)
(¥million)
Consolidated(¥ million) Q1 of FY2015 FY2014 Change Comments
Cash and deposits 74,199 67,340 6,858 Deposits to associated companies 2,000 5,000 (3,000) - Aeon Group’s surplus fund managementOther current assets 39,281 31,231 8,050
Current assets 115,481 103,572 11,909
Property, plant and equipment 690,056 689,820 236 - Acquisition of property, plant and equipment +¥42,585 million- Depreciation -¥7,016 million- Property sold to lease company -¥33,160 million, etc.
Intangible fixed assets 3,843 3,830 13 Investments and other assets 104,385 103,734 651
Fixed assets 798,286 797,385 901 Total assets 913,767 900,957 12,810
Income taxes payable 4,094 9,436 (5,341)
Deposits from tenants 66,359 47,598 18,761
- Due to a delay in the return of deposits as the last day of FY2014 wasa non-business day for banks (from Feb. 28 to Mar. 2) -¥18,718 million
- Due to a delay in the return of deposits as the last day of the quarter underreview was a non-business day for banks (from May 31 to Jun. 1) +¥24,322 million
Notes payable-construction 85,966 85,585 381 - Notes payable and accounts payable for the construction of new malls in Japan
Accounts payable-construction 6,633 10,259 (3,626)
Other current liabilities 52,962 56,581 (3,619) - Current portion of long-term debt -¥5,919 million- Bonds due within one year +¥200 million
Current liabilities 216,016 209,461 6,555
Long-term liabilities 363,039 358,959 4,079 - Straight bonds -¥200 million- Long-term debt +¥865 million- Guarantee deposits +¥2,606 million
Total liabilities 579,055 568,421 10,634
Total equity 334,711 332,536 2,175
Equity ratio 36.1% 36.4% (0.3%)
Interest-bearing debt 248,744 253,798 (5,054)
Ratio of interest-bearing debt to assets 27.2% 28.2% (1.0%)
Debt-to-equity ratio (times) 0.8 0.8 0.0
15
[Change in interest-bearing debt]Q1 of FY2015 FY2014 Change
Bonds due within one year 200 - 200Current portion of long-term debt 18,789 24,709 (5,919)Straight bonds 65,000 65,200 (200)Long-term debt 164,754 163,889 865TOTAL 248,744 253,798 (5,054)
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Summary of Balance Sheets
(¥million)
Consolidated(¥ million) Q1 of FY2015 Q1 of FY2014 Change Main items
Cash flows from operating activities 27,541 29,359 (1,818)
- Income before income taxes and minority interests +¥9,145 million- Depreciation and amortization +¥7,419 million- Deposits from tenants +¥18,761 million
* Due to a delay in the return of deposits as the last day ofFY2014 was a non-business day for banks (from Feb. 28 to Mar. 2) -¥18,718 million
* Due to a delay in the return of deposits as the last day of the quarter underreview was a non-business day for banks (from May 31 to Jun. 1) +¥24,322 million
- Income taxes paid -¥9,103 million- Other +¥1,318 million
Cash flows from investing activities (14,847) (28,133) 13,285
- Acquisition of property, plant and equipment -¥49,349 million- Acquisition of long-term prepaid expenses -¥468 million
(the right to use the land overseas, etc.)* Capital investment ¥49,818 million
- Gain on sale of property, plant, and equipment +¥33,160 million(switched to lease)
- Net increase in guarantee deposits +¥2,349 million, etc.
Cash flows from financing activities (8,680) 16,216 (24,896)
- Proceeds from long-term debt +¥1,954 million- Repayments of long-term debt -¥8,122 million- Dividends paid -¥2,506 million, etc.
Cash and cash equivalents at year-end 71,144 75,466 (4,322)
16
First Quarter FY2015 (March 1, 2015 – May 31, 2015) Summary of Cash Flows
*
17
2. Future Projects2. Future Projects
18
FY2015: New Malls Scheduled to Open
Aeon Mall Long Bien (Hanoi)
Aeon Mall Asahikawa Ekimaeopened on March 27 (Hokkaido)
Aeon Mall Okinawa Rycom opened on
April 25 (Okinawa Pref.)
Aeon Mall Tonami(Toyama Pref.)
Aeon Mall Tokoname(Aichi Pref.)
Aeon Mall Shijonawate(Osaka Pref.)
Aeon Mall Suzhou Yuanqu Hudongopened on May 29 (Suzhou, Jiangsu)
Aeon Mall Wuhan Jingkai(Wuhan, Hubei)
Aeon Mall Beijing Fengtai(Fengtai, Beijing)
Aeon Mall Hangzhou Liangzhu Xincheng
(Hangzhou, Zhejiang)
Aeon Mall Guangzhou PanyuSquare (Guangzhou, Guangdong)
Aeon Mall BSD CITYopened on May 30
Indonesia
VietnamCambodia
ASEAN
China
★:Opened in 1st quarter●:Scheduled to open in 2nd quarter or thereafter
Aeon Mall Suzhou Xinqu(Suzhou, Jiangsu)
19
List of planned new mall openings that have been disclosed
The mall will open at the site of the former Aeon Tonami, which closed in 2013. It is owned by Aeon Retail and operated by Aeon Mall.
The mall has a total of approximately 100 tenants, including 19 with their first store in Hokuriku and 8 with their first store in Toyama Pref. The mall serves the needs of the parenting generation and “Grand Generation (active senior generation)” in Tonami, where three-generation households are encouraged.
Its location approximately 2 km from the Tonami Interchange on the Hokuriku Expressway, proximity to Tonami Station connected to Shin-Takaoka Station on the Hokuriku Shinkansen, and availability of city circular buses make the mall easily accessible both by car and public transportation.
Overview of Planned Site
Aeon Mall Tonami Aeon Mall Shijonawate
Aeon Mall Tokoname
Overview of Planned Site Excellent accessibility by train and car is expected through Rinku Tokoname Station and RinkuInterchange near the mall. With the concept of “an entertainment park to enjoy 120% of the sea and sky,”the mall targets foreign visitors using Centrair (Chubu Centrair International Airport).
Located on the border of Shijonawate City and Neyagawa City and in the area of the district planning (Suna and Shinke) in the eastern Osaka urban planning area implemented by the two city governments. With the concept of “high-quality time for adults ‘CRUISING’,” the mall will help to create lifestyles that offer new discoveries and exciting experiences.
Business in Japan: New Business Locations
* Only new malls already announced are included above.
Shopping malls Location Scheduled opening date
28,300 m²
About 1,750 cars
Aeon Mall Shijonawate Shijonawate,Osaka Pref.Neyagawa,Osaka Pref. Autumn of 2015 About 159,000 m² About 79,000 m² About 4,100 cars
Aeon Mall Tokoname Tokoname, Aichi Pref. Winter of 2015 About 202,000 m² About 65,000 m² About 4,400 cars
Aeon Mall Sakai Teppocho(tentative) Sakai, Osaka Pref. March 2016 About 102,000 m² Undisclosed About 2,300 cars
Aeon Mall Imabari Shintoshi(tentative) Imabari, Ehime Pref. Spring of 2016 About 122,000 m² About 53,000 m² About 2,900 cars
Aeon Mall Takasaki Ekimae(tentative) Takasaki, Gunma Pref. FY2016 About 7,400 m² Undisclosed Undisclosed
Four other malls (areas to open malls: Tokai, Kinki, Chugoku, and Shikoku regions)
(incl. parking lots ouside mallpremises)
FY2016(Plan)
[7 malls]
FY2015(Plan)
[5 malls]
175,000 m²
Aeon Mall Asahikawa Ekimae Asahikawa, Hokkaido March 27, 2015
Aeon Mall Tonami Tonami, Toyama Pref. July 14, 2016
Site area
(incl. approx. 9,800 m² underthe railway line)
cars
Gross leasing area Parking
900 cars28,800
78,000 m² 4,000
m²
Aeon Mall Okinawa Rycom Kitanakagusuku, Nakagami-gun, Okinawa Pref. April 25, 2015
33,000 m²65,000About m² About
Features of the mall
Location:31-1,Tochi-kukaku seirijigyouchi, Nakagami,Tonami-shi, Toyama
Scheduled opening: July 14, 2015 Site area: About 65,000 m2
Floor area: About 50,000 m2
Total leasing area: About 33,000 m2
Parking: About 1,750 cars Specialty store: About 100 stores
20
Growth slows in the fourth and fifth years after opening. Large-scale renewal is implemented at the expiration of the six-year fixed-term building lease contracts of specialty stores. The large-scale revitalization of the entire mall is implemented by renewing 40% to 60% of the specialty stores through the introduction of new specialty stores and renewal and rezoning by relocating existing specialty stores. The investment will be 300 to 500 million yen, which will be collected over several years through increased cash flow.
Revitalization: The average age of Aeon Mall buildings is 10.3 years. Their value will be increased through revitalization.
Revitalization by increasing floor space
Revitalization without
increasing floor space
2,000
2,500
3,000
1年目 2年目 3年目 4年目 5年目
Ancillary revenue increased by adding earnings from the use of mall assets
Digitalization promoted based on the four concepts
Events held in event spaces and Aeon Halls Mall space used as advertising media
Convenience Community Shopping Entertainment
We are implementing large-scale revitalization (renewal) of existing shopping malls and increasing their appeal and freshness to improve their earning power.
FY2014(Actual)
8 malls
FY2015(Plan)
FY2016(Plan)
13 malls 18 malls
[Reference]Aeon Retail Co., Ltd.’s 69 malls managed and operated by the Company
FY2014 (Actual)
17 malls
FY2015 (Plan)
FY2016 (Plan)
19 malls 15 malls
300
250
2001st yr. 2nd. yr. 3rd. yr. 4th yr. 5th yr.
< Changes in Sales Made by Tenants after Mall Opening >300
250
200
(in ¥100 million)
Business in Japan: Increasing the Earning Power of Existing Malls
Rather than inviting tenants only to the areas where the floor space will be increased, the malls will be revitalized based on the same concept as opening a new mall through the dynamic rezoning of the entire mall, including the additional floor space and optimization of the tenant mix. While the investment varies depending on the scale, the criteria for investment profitability will be EBITDA of 13% for investment in additional floor space, the same as a new mall.
21
Efforts Made in the Past
Duty Free Shopping Infrastructure Development
May 8Aeon Mall Narita May 18Aeon Mall Okinawa Rycom
イオンモールの免税店数(2015年4⽉末時点)
86
185226 250
316
548
448
764
888.3%537%
421%
115%163%
191%
267%
0
100
200
300
400
500
600
700
800
9⽉ 10⽉ 11⽉ 12⽉ 1⽉ 2⽉ 3⽉ 4⽉0
1
2
3
4
5
6
7
8
免税店数
伸び率(対9月)
The number of duty-free shops has increased eightfold since October 2014. Two malls introduced and commenced the operation of duty-free service counters after the legal revision in April 2015.
In FY2015, promotions target foreign visitors, particularly at 37 priority malls, including Tokoname. Promotions targeting overseas countries will be strengthened while developing, in particular, an environment including multilingual services.
Creating Information Counter signs in multiple languages (completed at 31 malls)
Preparing a manual for multilingual floor guides
Money changers (4 malls) have been introduced, the withdrawal of Japanese yen from Aeon Bank ATMs using credit cards issued in foreign countries has become possible (all malls), and the number of malls where the China UnionPay card can be used has been increased (112 malls).
* Credit cards shown on the left can be used.
< Tax-free Counter >
Future Projects A telephone interpreting service was launched in June, and promotional measures using overseas media will be implemented from July to advertise, from September, for China’s Guoqingjie holiday.
Phone providing information
Interpreter
Customers visiting Aeon Malls
English Chinese Korean Spanish
Russian ThaiPortuguese
Guides
Considering ads in in-flight magazines, local guidebooks and websites
Business in Japan: Development/Entry into New Market (Foreign Visitors)
Toward the market of 20 million foreign
visitors to Japan by 2020
Increase sales by attracting inbound visitors representing a new growth market toward 20 million foreign travelers to Japan by 2020.
Developmentof
environment
Promotion
The development of an environment for the designated malls for FY2015 is completed.
It is then improved/developed into the required environment.
Advertise through overseas media and tie-ups with travel agencies. Participate in travel expos. Implement active promotion by both inviting and sending shoppers to the malls.
2014 2015 2020
Number of duty-free shops in Aeon Malls (as of April 2015)
No. of duty-free shops Growth rate(since September)
Sep Oct Nov Dec Jan Feb Mar Apr
A surplus is targeted from FY2016 given an increase in profit from existing malls and the number of malls owned by Aeon Malls, which are more likely to be profitable
22
China
Overseas Business
Beijing, Tianjin
ASEAN
Indonesia
Malaysia
Myanmar
Vietnam
Cambodia
Laos
Thailand
ZhejiangJiangsu
ShandongHubei
Guangdong
Aeon Mall Phnom Penh (opened in Jun. 2014)
Aeon Mall Wuhan Jinyintan (opened in Dec. 2014)
Shopping malls with large parking areas are built in many Asian countries. Sufficient visitors to fill the parking lots gather on weekends after the malls are opened, and future growth can be expected.
▲ 10 ▲ 10
▲ 17▲ 20
(in ¥00 million)
< Changes in Store-based Profit (gross profit*) >
FY2012 FY2013 FY2014 FY2015
FY2016
Shift to profit in FY2016
No. of malls at fiscal year end
3 4 9 17 23
[Plan]
[Plan] [Plan]
[Plan]
* Operating profit excluding head office (SG&A) expenses
-10 -10-17
-20
Opening Name of Mall Location
Aeon Mall Suzhou Yuanqu Hudong (★) Suzhou,Jiangsu 99,300 m² 218,000 m²
Aeon Mall Beijing Fengtai Fengtai Qu, Beijing About 63,800 m² About 153,300 m²
Aeon Mall Guangzhou Panyu Square Guangzhou, Guangdong About 51,400 m² About 172,900 m²
Aeon Mall Suzhou Xinqu Suzhou, Jiangsu About 153,000 m² About 162,000 m²
Aeon Mall Hangzhou Liangzhu Xincheng (★) Hangzhou, Zhejiang About 94,800 m² About 176,000 m²
Aeon Mall Wuhan Jingkai (★) Wuhan, Hubei About 129,900 m² About 274,600 m²
Aeon Mall Hebei Yanjiao (tentative name) Sanhe, Hebei About 84,000 m² About 175,000 m²
Aeon Mall Wuhan Shiqiao (tentative name) Wuhan, Hubei About 46,200 m² About 120,900 m²
Aeon Mall Guangzhou Jinshazhou (tentative name) Guangzhou, Guangdong About 84,500 m² About 187,700 m²
FY2016
Site area Floor area
FY2015
23
Beijing, Tianjin, Shandong
Beijing
Tianjin
Jiangsu
HubeiZhejiang
Guangdong
Shandong Jiangsu, Zhejiang
Guangdong
Hubei
Shandong
Number of malls planned to be opened
List of planned mall openings that have been disclosed
* Mall opening plans are shown based on the Japanese accounting year. The fiscal year end of local subsidiaries in China is at the end of December.
* Only new malls already announced are included above.
Business in China
* Malls in China are primarily operated through leases, but those with a ★ mark are owned by the Company.
Dominant openings of malls in China
Suzhou area
Aeon Mall Hangzhou Liangzhu XinchengSuzhou
Wuzhong
SuzhouXinqu
Suzhou YuanquHudong
24
The planned site is located approximately 5 km east of Hoan KiemLake in the central part of Hanoi. The Long Bien district is designated as a new housing area in the Hanoi Master Plan (Vision for 2030 toward 2050) that was established in 2011, in which roads and houses are developed and the population inflow continues.
Mall Opening Plan for the ASEAN Region
Vietnam
The planned site is located in Binh Tan district, approximately 10 km southwest of the center of Ho Chi Minh City (about 40 minutes by car). It is in the “International High-tech Healthcare Park”that includes medical facilities, a residential area, schools, and commercial facilities, which is being developed entirely by Hoa Lam-Shangri-La, and where further development is expected in the future. The mall is able to attract visitors from a wide area through an outer ring road and eastern and western highways.
Aeon Mall Long Bien Scheduled Opening: Autumn of 2015 Location: Hanoi IT Park Project in Sai Dong B Industrial Zone,
Phuc Dong and Long Bien Ward, Long Bien District, Hanoi Site area: About 96,000 m2
Floor area: About 110,000 m2
Total leasing area: About 73,400 m2
Specialty stores: About 280 stores Parking: About 1,000 cars, About 4,000 motorbikes
(Commencement of construction work on April 11, 2014)
Aeon Mall Binh Tan Scheduled Opening:Summer of 2016 Location: Lot PT1, Hi-tech Healthcare Park, 532A Kinh Duong
Vuong, Binh Tri Dong B ward, Binh Tan District, HCMC Site area: About 46,800 m2
Floor area: About 114,000 m2
Total leasing area: About 59,000 m2
Specialty stores: About 160 stores Parking: About 1,500 cars , About 4,000 motorbikes
Business in the ASEAN Region
AEON MALL Binh TanScheduled opening: 2016
AEON MALL Tan Phu CeladonOpened: January 11, 2014
AEON MALL Binh Duong CanaryOpened: November 1, 2014
Ho Chi Minh
Binh Duong
Ring road (existing)Ring road (planned)Subway (planned)
No. of malls opened (in each FY) No. of malls (total)
25
Estimated Performance in FY2015 (Ending February 2016)
Amount YoY
Operating revenue ¥238.0 billion 116.7%
Operating income ¥44.5 billion 106.3%
Ordinary income ¥42.0 billion 102.0%
Net income ¥24.6 billion 100.4%
Net income per share ¥107.96 -
Capital expenditure ¥170.0 billion
Depreciation ¥37.0 billion
The information and forward-looking statements, including the earnings forecast, contained in this material are based on information presently available to the company and certain assumptions judged to be reasonable, and the company can give no assurance that its expectations will be achieved. Actual results may differ materially from these projections due to a range of factors.
Performance Plan (Consolidated)
26
3. Medium-Term Management Plan (FY2014 – FY2016)
3. Medium-Term Management Plan (FY2014 – FY2016)
27
Business Data
Due to the revision of the mall opening plan for Japan and overseas, the targets of operating revenue of 300 billion yen and ordinary income of 60 billion yen in FY2016 (ending Feb. 2017) will be targeted for achievement at an early stage in the next medium-term plan.
Newly-Opened Malls
Capital Expenditure
Medium-Term Management Plan
当初計画(2014年4月8日公表) (¥million) 修正計画(2015年4月9日公表) (¥million)FY2014 FY2015 FY2016 FY2014(Actual) FY2015(Plan) FY2016(Plan)
Operating revenue 208,000 - 300,000 Operating revenue 203,902 238,000 270,000
Ordinary income 43,500 - 60,000 Ordinary income 41,160 42,000 48,000
Capital expenditure was reduced by ¥130 billion from the initial plan by revising the mall opening plan
- In Japan, the timing for opening new malls has been changed based on revised plans and schedules in response to delays in opening malls due to a gap between demand and supply caused by increased demand and a lack of labor in the construction industry, as well as increased construction costs.
- In China, some mall openings have been delayed due to stricter store-opening procedures that have been imposed. - In the ASEAN region, the business plan for Indonesia was revised, considering factors such as the risk of volatile exchange rates and stricter foreign
investment control, and the years for opening the malls have been changed.
当初計画(2014年4月8日公表) 修正計画(2015年4月9日公表)FY2014 FY2015 FY2016 Total
Plan Plan Plan Plan Actual Change Plan Change Plan Change Plan Change
37 (14)13 (6) 13 (6)
5 (5)
Total 13 19 19 51 Total 11 (2)
2 (2) 1 (3)
13 (2)
ASEAN region 2 4 4 10 ASEAN region 2 0
6 1 5 (1)
19 (7)
China 4 5 6 15 China 2 (2)
5 (5) 7 (2)
FY2016 Total
Japan 7 10 9 26 Japan 7 0
FY2014 FY2015
当初計画(2014年4月8日公表) (¥million) 修正計画(2015年4月9日公表) (¥million)FY2014 FY2015 FY2016 Total
Plan Plan Plan Plan Actual Change Plan Change Plan Change Plan ChangeJapan 130,000 140,000 130,000 400,000 Japan
FY2014 FY2015 FY2016 Total
135,000 5,000 90,000 (50,000) 85,000 (45,000) 310,000 (90,000)China 20,000 40,000 20,000 80,000 China 20,000 0 50,000 10,000 20,000 0 90,000 10,000ASEAN region 40,000 50,000 30,000 120,000 ASEAN region 25,000 (15,000) 30,000 (20,000) 15,000 (15,000) 70,000 (50,000)
Total 190,000 230,000 180,000 600,000 Total 180,000 (10,000) 470,000 (130,000)170,000 (60,000) 120,000 (60,000)
Initial plan (announced on April 8, 2014) Revised plan (announced on April 9, 2015)
Initial plan (announced on April 8, 2014) Revised plan (announced on April 9, 2015)
Initial plan (announced on April 8, 2014) Revised plan (announced on April 9, 2015)
28
InvestmentCash flow from operating activitiesDebtOther(funds in hand, deposits received,REIT, etc.)
Financing
900
450
550
600
550
(in ¥00 million)
1,8001,700
1,200
FY2014 FY2015 FY2016
-150
405
634
761
[Ref.] Balance of cash and deposits at the end of FY2014: ¥67.3 billion
Total in 3 yearsCapital Expenditure Fund Allocation
Cash flow from operating activities
Debt Other
Medium-Term Management Plan
29
Asset Management Agreement
Aeon REIT Management (asset management company, a wholly owned subsidiary of
Aeon Co., Ltd.)
Sale-and-leaseback Master lease agreement
Tenants
Sublease agreement
Pipeline and mall management agreement
20-yr. contract, fixed lease payment
Type of Mall Possession No. of Malls in Japan
Operating Gross Margin Component Ratio
Owned land and owned building 13 39.2% 13.8%Leased land and owned building 23 32.9% 40.8%Leased land and leased building 30 *1 31.4% 46.5%Property under management contract 4 55.5% 1.6%Other *2 - -13.1% -2.7%
Total 70 30.2% 100.0%
●Profitability by type of mall possession in FY2014
● Mall Sold in FY2014 Name of Mall Aeon Mall Kyoto
Location Kyoto, Kyoto Pref.
Book Value ¥20,532 million
Transfer Value ¥21,470 million
Appraised NOI Yield 5.1%
Date of Transfer Feb. 27, 2015
*1 Includes 19 liquidated assets *2 “Other” includes 69 malls overseas and of Aeon Retail that Aeon Mall is contracted to operate.
イオンリート投資法人
Use of REIT as a Growth Tool We will sell land and buildings we own to a REIT and, at the same time, lease all of the land and buildings from the REIT by signing a sale and leaseback agreement.
We will therefore continue to operate the malls in the same way as we did before the sale, and will receive rents directly from the end tenants. Our lease payments to the REIT will be fixed, which will thus earn stable income, and we will benefit from increased earnings from our business operations. The figure on the lower right provides an overview of the sale of our six existing malls to Aeon REIT as of November 22, 2013. While the market valuation when we
owned and operated the six malls was ¥140 billion, our sale price to the REIT is ¥64.6 billion, as the market valuation is based on ¥4.5 billion paid by us to the REIT for the lease.
While we will lose the unrealized profit of ¥76.7 billion from the increased market valuation of the leased real estate due to the sale of existing property to Aeon REIT, we will lease back the property when the sale takes place and gain a non-asset profit of ¥8.2 billion, which will allow us to maintain an unrealized non-asset profit. The collection of ¥64.6 billion will allow us to create new cash flow and unrealized profit by re-investing in the next new malls to be opened.
We have liquidated assets by selling them to REITs other than Aeon REIT using the same scheme.
Aeon REIT Investment Corporation
Aeon Mall< Overview of sale of six existing malls to Aeon REIT as of Nov. 22, 2013 >