Medium-Term Strategy

In order to revamp the business portfolio and management structure of the entire Group, we formulated a medium-term management plan and established the basic policy as "Second Founding: Innovation in the Value Chain and Creation of Networks." The AEON Group will make full use of the data and know-how accumulated through retail and touchpoints at real stores in Japan and overseas, where the AEON Group has an overwhelming advantage, and will build a platform that balances digital and real, and realizes the providing services that are "safe, secure, convenient, and available anytime, anywhere." Through this initiative, we will maximize the corporate value of the entire AEON Group by demonstrating synergies through collaboration with AEON Group companies and external partners.In addition, the rapidly growing Asian countries are expected to continue to grow deeds affected by covid-19 infection. In this environment, the Group will promote investment in growth areas following Thailand, Malaysia, and Hong Kong, which have already achieved certain business results, and further expand its business by reviewing its business portfolio based on diversifying customer needs in each country and area.

Main initiatives in Domestic business

Creating infrastructure for the construction of AEON Living Area

One of the growth strategies of the AEON Group is to create AEON Living Areas and enrich the lives of customers by seamlessly providing products, services, and living infrastructure rooted in the local community by combining the comprehensive capabilities of each Group company.The AEON Group plays a role in creating infrastructure that connects the AEON Living Area with financial services. As part of these efforts, we will work not only on the AEON Group but also on providing payment methods that can be used to "safely, securely, conveniently and at a great price, anytime, anywhere," and work on "Group-based cashless promotion", which positions our payment services such as AEON cards as the main payment method.Furthermore, we will establish a system to provide personalized services to each customer in a timely manner, both digitally and realistically, by analyzing the service usage information accumulated through these initiatives and utilizing the sales base of each Group company. As a result, we will achieve a dramatic increase in the volume of transactions and the number of card holders and will expand cross-selling to each of the Group's businesses, including insurance businesses such as health-promotion insurance.

Taking the needs of local customers' living infrastructure

By supporting local governments with local currencies and regional gift certificate issuance projects, or responding to life-related needs such as health and telecommunications, which are essential for daily life, we will provide a wide range of service use opportunities in the AEON Living Area to local customers and realize a rich lifestyle where they can receive services "anytime, anywhere, safely, safely, conveniently and at a great price."

Increase risk and cost control capabilities

In addition to enhancing credit and receivables management through scoring using AI, we will also work to expand the customer base that provides financial services. In addition, we will review the touchpoints of both real and digital related to financial services and provide services flexibly according to customer needs, such as one-stop service, online customer service, and unmanned stores. In addition, we will review the headquarters functions that support the implementation of priority measures in this medium-term management plan, allocate optimal resources throughout the Group, and improve the accuracy of our risk and cost control capabilities.

Main initiatives in Global business

Implementing digital financial inclusion in each country

Since digital financial inclusion is one of the important measures for governments in Asian countries where the Group is developing, we will realize the early offering of products through apps and digital products, as well as digitize existing services. In addition, we will work to build living areas with AEON Group companies and leading partners in Asian countries as well as in Japan.

Expansion of business, products offered, and expansion areas

In regions where the number of high-income people such as Thailand and Malaysia, which are leading the way among the developing countries, we will actively expand our business portfolio by diversifying customer needs, insurance in response to sophistication, expanding asset-building products, and diversifying our business through alliances with leading partners. In addition, in new growth areas such as Vietnam, we will combine our business expansion know-how to expand services that enrich the lives of our customers.

Area strategy planning that responds to the differences in needs between cities and regions

We will identify customer needs, demographics, and the effects of novel coronavirus infections that differ between cities and industries depending on each country and area and provide optimal services according to area characteristics in an optimal manner.

Common issues in promoting both domestic and international businesses include the establishment of governance systems related to IT and systems, the development of human resources such as management personnel and IT personnel, and the establishment of business models to increase sustainability. By working to expand our business while solving these issues, we will further enhance the effectiveness of our medium-term management plan.