aeon mall ar03-pdf - epra
TRANSCRIPT
Exciting
ELOPE TN S
EV
Exciting Developments
AnnualReport2003D
M
LeadL
ÆON MALL Co., Ltd. Annual Report 2003 pg. 1
in an Emerging Market
The Japanese retail sector is in transition from stand-alone
stores to commercial complexes. This is reflected in the
expansion of the shopping mall market. However, most of the
facilities known as malls in Japan have been developed by
general merchandise retailers, which simply cluster a few
dozen specialty stores around their own retail facilities. Specialist developers
are rare in Japan, and most have only one mall. As a pioneer in shopping mall
development in Japan, ÆON Mall is one of the very few companies with a
network of malls across the nation.
PositionedforGrowth
der
pg. 2 ÆON MALL Co., Ltd. Annual Report 2003
SophFinancialS
ÆON MALL Co., Ltd. Annual Report 2003 pg. 3
ManagementÆON Mall develops large shopping malls with 100 or more tenants.
Development on this scale involves substantial capital investment, and
the basic approach employed by ÆON Mall is to lease land and own build-
ings. It has also started to use off-balance sheet methods,
such as operating leases and asset securitization, to
avoid a build-up of assets in a deflationary environment
and to achieve a balance between returns and asset
efficiency. ÆON Mall is also diversifying its sources of
finance to include not only bank loans, but also direct finance. A share
float implemented in July 2002 was example of this strategy.
FinancialStrength
histicated
pg. 4 ÆON MALL Co., Ltd. Annual Report 2003
Ave
rage
Shopping malls contribute as much as
96% of ÆON Mall’s revenues. Since the
start of shopping mall operations in 1989,
ÆON Mall has achieved revenue and
income growth in each of the succeeding
14 accounting periods. Over the last five-year period,
operating income grew by the average annual rate of 27%,
and average net income grew by 32% on a non-consolidated
basis. From fiscal 1997 through 2002, income growth has
outstripped the growth of floor space. In that time, com-
mercial space in its shopping malls rose by 315%, and
operating income and net income grew by 336% and 403%,
respectively, underscoring ÆON Mall’s ability to achieve
sustained growth in income from existing-mall operations.
ProfitGrowth of
DemonstratedPerformance
ÆON MALL Co., Ltd. Annual Report 2003 pg. 5
%Over
pg. 6 ÆON MALL Co., Ltd. Annual Report 2003
Millions of yen
For the year:
Revenues
Operating income
Net income
At year-end:
Total assets
Interest-bearing debt
Shareholders’ equity
Per share:
Net income
Cash dividends applicable to the year
Ratios:
Net income/Revenue
Equity ratio
Return on assets*
Return on equity
*Return on assets = Net income/Total assets
30,836
9,041
3,878
154,190
70,125
23,762
167.73
25
12.6%
15.4%
2.6%
19.1%
Years ended February 20 2003 2002
Consolidated
Financial Highlights
Contents
A Message from the President . . . . . . . . . . . . 7
Shopping Mall Development . . . . . . . . . . . . . . 12
Property Management . . . . . . . . . . . . . . . . . . 16
Built-in Sustainability . . . . . . . . . . . . . . . . . . 20
Our Shopping Malls . . . . . . . . . . . . . . . . . . . . 24
Financial Section . . . . . . . . . . . . . . . . . . . . . . 26
Business Information . . . . . . . . . . . . . . . . . . . 49
Corporate Information . . . . . . . . . . . . . . . . . . 50
Stock Information . . . . . . . . . . . . . . . . . . . . . 51
25,162
7,007
2,393
148,254
76,058
16,786
107.56
20
9.5%
11.3%
1.7%
15.3%
ÆON MALL Co., Ltd. Annual Report 2003 pg. 7
A Message from
the President
Fiscal 2002 (the year ended February 20, 2003) was the 14th year since the launch of shopping mall opera-
tions and an epochal term for ÆON Mall. The Company listed its shares on the First Section of the Tokyo
Stock Exchange in July 2002. The listing highlighted the existence of a specialty shopping mall developer
and operator, still very much a rarity in Japan, and enabled the Company to procure funds for new shopping
complex development. Fiscal 2002 was also the year in which ÆON Mall put forth a long-term vision aiming
to take its place among the world’s ten leading shopping complex developers during the coming ten years,
and it established a medium-term management plan in the course of achieving that goal. Not content with
our position as Japan’s largest retail complex developer, we have clearly proclaimed our preparedness to
push ahead toward a new growth stage.
FOURTEEN CONSECUTIVE YEARS OF REVENUE AND INCOME GROWTH
Amid a continuing deflationary environment and great uncertainty about the future of
the Japanese economy, consumption expenditure remains in a long-term slump.
Despite these unfavorable business conditions for the retail industry, the shopping malls
developed by the Company met with strong customer support during the year under
review, and we posted our 14th consecutive gain in both revenues and income.
On a consolidated basis, the Company recorded a sharp rise in full-year revenues
to ¥30,836 million, a 22.5% increase compared to the previous term. The excellent
results are attributable to growth in revenues from existing shopping malls coupled with
full-year contributions from three new shopping complexes that opened during the pre-
vious year. The ÆON Takaoka Shopping Center, opened in September of 2002, got off
to a flying start that exceeded all expectations.
Thoroughgoing cost control helped boost operating income to ¥9,041 million, a
29.0% year-on-year expansion, which exceeded even the high rate of increase in rev-
enues. The Company achieved a dramatic 62.1% increase in net income, which
surged to ¥3,878 million in part due to booking a gain on the return of the subsitutional
execution portions of welfare pension funds. Expansion of floor space at one shopping
mall and the opening of one new complex brought an increase in the total commercial
floor space of ÆON Mall-developed facilities from 659,065 square meters to
755,876 square meters.
President
Yoshiharu Kawato
pg. 8 ÆON MALL Co., Ltd. Annual Report 2003
OUTLINE OF THE MEDIUM-TERM MANAGEMENT PLAN
In fiscal 2002, ÆON Mall formulated a medium-term management plan aimed at
achieving new growth. This three-year plan, for the period from fiscal 2003 to fiscal 2005
(from February 21, 2003 to February 20, 2006), targets revenue of ¥53,000 million, net
income of ¥7,000 million and return on assets of 3.5% or higher. This target calls for
the expansion of the total commercial floor space to 1.3 million square meters
through the development of eight or more shopping malls within three years.
The Company’s long-term vision entails increasing the number of shopping
malls to more than 50 and the total commercial floor space to more than 3.0 million
square meters during the coming ten years. By so doing, we will take our place
among the world’s top ten shopping complex developers and transform ourselves into
a specialty shopping mall developer with capabilities comparable to those of leading
developers in Europe and North America, where mall development is most advanced.
We will unfailingly execute the medium-term management plan in preparation for the
achievement of this long-term vision.
Strengthening and expanding shopping mall operations
Progressing deflation has spurred many Japanese manufacturers to shift their pro-
duction overseas, and the number of sites suited to the large-scale shopping complexes
at which ÆON Mall excels is rapidly increasing. Furthermore, land-use regulations are
becoming more flexible, and moves to attract shopping mall development are in evidence
as well. The number of shopping malls is on the rise and the share of the total
annual sales amount for the retail industry accounted for by shopping malls has
expanded from 10% to 20% during the past ten years, although the annual sales
amount for the retail industry is trending steadily downwards. This situation clearly
indicates the arrival of a true era of shopping malls, and represents a tremendous busi-
ness opportunity for ÆON Mall.
At the same time, the industry has been plunged into full-scale competition as
companies from other industries, and from overseas, attracted by the growth poten-
Long-term Vision
Becoming a global
top-ten specialist mall
developer/operator
Management target by fiscal 2005
> Revenues: ¥53 billion
> Operating income: ¥7 billion
> ROA: 3.5% or more
> Commercial floor space: 1.3 million square meters(8 or more new malls)
ÆON MALL Co., Ltd. Annual Report 2003 pg. 9
tial of the shopping malls in Japan, have begun to enter the market. ÆON Mall is fully
prepared to demonstrate its competitive advantage as a pioneer specialty mall
developer and operator. It is our intention to fully and rapidly leverage the expertise
we have accumulated over the years to expand our business base, aggressively
seize on business opportunities and prevail against the competition. To that end, ÆON
Mall must secure prime development sites ahead of the full-scale market entry on the
part of companies from other industries and overseas.
All Company employees, including those not involved in shopping mall devel-
opment, will assume the mindset of development personnel and make use of
every available route to gather site information. In this way, we will redouble our
efforts to obtain excellent sites.
Even as we engage in new shopping mall development, we must strengthen the
competitiveness and profitability of existing malls. The major source of revenue
from shopping mall operations is rent from tenants. The Company has introduced rents
based on a percentage of sales. Such a system links increases in tenant store sales to
increases in our own revenues. Using information technology and other measures, we
must further bolster sales support for specialty stores. The Company will intensify ten-
ant review and replacement to create a tenant mix that maximizes return on shopping
mall assets by monitoring changes in the market and tenant performance. We will also
systematically expand floor space and conduct large-scale renovations.
Cost reduction is another important issue as we pursue revenue expansion ini-
tiatives. We will promote chain management to cut start-up and running costs in an
unconditional pursuit of low-cost operations, while maintaining the high image of
our facilities. By standardizing and systematizing business procedures, we expect
to be able to streamline and speed up operations, and at the same time realize sig-
nificant cost savings.
Mall development pursuant to maintaining a solid balance sheet
Growth by increasing the number of shopping facilities requires a carefully conceived
financial strategy. Traditionally, the Company has obtained project financing for
development of individual shopping complexes. However, the timely diversification of our
financing methods will give more maneuverability in opening new facilities. To enable col-
lateral-free corporate financing based on corporate credit, in fiscal 2003, the
Company aims to obtain a corporate credit rating. However, we will not rely solely on indi-
rect financing, but will proceed at the same time to obtain funds from the market.
Asset securitization is another effective option for diversifying financing and
improving the balance sheet. In fiscal 2002, the Company raised ¥4,788 million by
liquidating the guarantee deposits receivable for two malls and applied the funds to
repayment of borrowings. These days, real estate investment vehicles are diversify-
ing in Japan, with J-REIT (Japanese Real Estate Investment Trust) being a notable
example. While it formerly held primarily office buildings, its holdings now include
pg. 10 ÆON MALL Co., Ltd. Annual Report 2003
shopping centers and malls. While continuing to rely basically on the leased land and
owned building method for developing malls in the future, ÆON Mall will also
securitize existing shopping complexes to reduce interest-bearing liabilities and
improve return on assets.
Off-balance sheet structures, such as operating leases, also contribute to optimal
asset portfolio formation. In fiscal 2001, we developed two shopping malls using the
operating lease financing method. Two new malls are scheduled to open in fiscal 2003,
one of which will be financed using an off-balance sheet method. In developing our malls
in the coming years, we will continue to carefully assess whether or not we should own
or lease buildings at malls, with a view to the long-term prospects.
In preparation for the introduction of fixed-asset impairment accounting, we will
introduce balance sheets for each shopping complex, while we manage cash flow and
investment individually. We will also make sure to dispose of idle properties.
Launching a property management business
To secure a place for ÆON Mall among the world’s top ten commercial property devel-
opers, we have begun to extend the scope of business activities beyond development
of our own properties and move into a new field: property management with a focus
on operation management. No company in Japan engages in full-scale property
management of commercial facilities. Although some companies perform third-
party facility management under contract, they are not involved in tenant leasing, the
key to success in the shopping complex business. The Company will provide a com-
prehensive property management service spanning everything from planning, devel-
opment, tenant leasing and operations, to facility management. For the first project in
this new business, we concluded an agreement on construction management for a
shopping mall development in Taiwan. Over the coming ten-year period, we will
develop this new operation into a stable source of profit.
Entry into the property management business will provide an opportunity to estab-
lish a new source of profit based on expertise the company has developed over the years.
What is more, the process of seeking out value that can be sold to other companies will
yield increased precision in the various business processes entailed in the operation
of our own facilities and will enhance our competitiveness.
ÆON Morioka Shopping Center ÆON Ota Shopping Center
New malls opening
in fiscal 2003
ÆON MALL Co., Ltd. Annual Report 2003 pg. 11
Expanding insurance agency operations
Although ÆON Mall’s long-established insurance agency operations now account for
less than 4% of the Company’s overall revenues due to the growth of the shopping mall
operations, it is nevertheless an important business that yields stable profits. The
Company operates one of Japan’s few full-service insurance agency operations,
offering both non-life insurance and life insurance from a number of insurance
companies. In the corporate insurance sector, we leverage the benefits of membership
in the large-scale retail and service group ÆON to sell insurance primarily to the near-
ly 140 group companies.
While bolstering our ability to issue proposals to cope with the constantly
changing corporate risk situations of business today, we are currently focusing on mar-
keting activities directed at individual customers. Under these terms, we can take
advantage of synergy with the shopping mall operations. During fiscal 2002, we
commenced sales to individuals at shopping malls, where many customers congregate
and where the workers are also important potential customers. As reform of the
social insurance and pension systems brings expanded opportunities to sell insurance
to individuals, ÆON Mall will make the most of the planning and consulting capabilities
nurtured in the corporate sector to achieve further sales growth.
FULFILLMENT OF CORPORATE SOCIAL RESPONSIBILITY
A shopping mall operation cannot prosper without symbiosis with the community it
serves. We have long striven to fulfill our responsibilities to society, while assuring that
the natural environment is either improved or impacted minimally by our activities.
In fiscal 2002, ÆON Mall established the ÆON Mall Social Responsibility Council to
review corporate activities from the standpoint of society, the environment and
ethics in order to redouble our efforts in this regard. Under the auspices of this coun-
cil, we will establish a Compliance Committee to supplement the functions of the exist-
ing Social Contribution Council and Environment Committee.
We also aim to obtain Privacy Mark certification. The Company handles vast quan-
tities of personal information on customers and employees of companies that operate
stores in our malls, and we plan to construct a failsafe system for protecting this per-
sonal information.
The public offering of our shares has extended our responsibilities. To you, our
shareholders, we will promote management transparency, objectivity and accounta-
bility in the firm belief that this is in the best interests of the Company and its
stakeholders. We positively intend to enhance corporate value by pursuing the
aforementioned business initiatives to more effectively serve your long-term interests.
President Yoshiharu Kawato
pg. 12 ÆON MALL Co., Ltd. Annual Report 2003
Community Life
Creating
New Dimensionsfor
Shopping Mall
Development
ÆON MALL Co., Ltd. Annual Report 2003 pg. 13
A huge new shopping mall is built on what was once an empty field. Local residents, who
previously had to travel to neighboring towns to see movies or buy goods other than daily
necessities, can now compare and choose among goods offered by a wide array of retail
stores. They have a place where families can relax throughout the day. This is ÆON Mall’s
vision: to create shopping malls that enhance community life and culture.
pg. 14 ÆON MALL Co., Ltd. Annual Report 2003
Shopping Mall
Development
MARKET DEVELOPMENT
Shopping malls developed by ÆON Mall are large-scale, multi-functional
commercial complexes that target large trade areas. Most are sited on the out-
skirts of regional cities, usually far from commercial districts, where it is dif-
ficult to secure sufficient land for large commercial complexes and where
establishment costs can be high. Because ÆON Mall aims to generate the great-
est possible returns from the smallest possible investment, it considers
such commercial district locations to be unsuitable.
When developing a new shopping mall, ÆON Mall aims to create an
asset that will bring prosperity to the area and become a new focal point for com-
munity life. In short, it creates its own markets. Changes in Japan’s industri-
al structure have brought an increase in the number of disused farmland
and factory sites that offer high potential for development as major shopping
malls. These are the places that ÆON Mall selects for development. Because of
its proven track record in market creation, ÆON Mall now receives many
approaches from local governments, which are eager to secure malls as cen-
terpieces of industrial and urban development schemes. There is ample
scope for the development of new malls. ÆON Mall estimates that are still
around 100 suitable sites throughout Japan.
INTEGRATED FUNCTIONS
AND SERVICES ON LARGE SITES
ÆON Mall’s standard shopping mall consists of commercial facilities with a floor
space of 60,000 square meters, together with parking for 3,500 vehicles, on a
site with an area of at least 100,000 square meters. Few other companies are
involved in shopping mall development on this scale in Japan. ÆON Mall
aims to create complexes with at least two anchor stores, such as Japanese-style
For ÆON Mall, a shopping mall is not merely a retail center. It is a virtual town capable
of meeting all of the needs of people in local communities. Tenants include not only
retailers and restaurants, but also cinema complexes and other entertainment facilities,
and our malls support essential public services such as banks and health clinics. ÆON
Mall aims to create malls that play a central role in their communities by offering a wide
array of services and functions.
ÆON MALL Co., Ltd. Annual Report 2003 pg. 15
general merchandise stores (a combination of supermarket and U.S.-style
general merchandise store under one roof) or department stores, together
with at least 100 specialty stores of various types located in an enclosed mall
linking the two anchor stores. Tenant selection begins with in-depth market
research. ÆON Mall then approaches highly competitive merchants that
reflect market needs. About one-third of the tenants are national chains that
have remained consistently popular with consumers. Another third is made up
of stores that are establishing regional branches for the first time. The
remaining third consists of local retailers. The result is an appealing blend of
familiarity and novelty.
Competition is an important force for improving the quality of tenants. For
this reason, ÆON Mall always ensures that there is more than one store in each
retail category in its malls. The presence of a highly competitive anchor store has
a major influence on the success of a shopping mall. A key advantage for
ÆON Mall is the fact that it can anchor its malls with JUSCO, a general mer-
chandise store operated by its parent company, ÆON.
ÆON Mall develops large-scale shopping malls throughout Japan. They serve large areas with a variety of functions, including
shopping, dining, entertainment and essential services, all of which create a focal point of community life.
Standards for Our Malls
Trade area 400,000–500,000 people within 30 min. by car
Land size 100,000.m2
Commercial floor space 60,000.m2
Numbers of tenants 100–150 stores
Parking capacity 3,500 vehicles
pg. 16 ÆON MALL Co., Ltd. Annual Report 2003
Drawing Power
Enhancing
Customer
Property
Management
ÆON MALL Co., Ltd. Annual Report 2003 pg. 17
Even the newest facilities will lose their novelty with the passage of time, and as freshness
wanes, customer numbers gradually decline. ÆON Mall supports the business activities of
its tenants to ensure that its shopping malls are always alive with customers. It achieves
this by making the maintenance of freshness a basic commitment in both its development
and investment plans, and also in day-to-day management. In shopping malls created by
ÆON Mall, shoppers always find something new, however often they visit.
pg. 18 ÆON MALL Co., Ltd. Annual Report 2003
Property
Management
COMPREHENSIVE TENANT
SUPPORT
Rents for specialty stores other than anchor stores consist of a 28% fixed
portion, with the remaining 72% based on turnover. By combining a fixed
rent with a percentage of turnover, ÆON Mall raises the upper limit of its income
potential. This has been one of the keys to the Company’s strong growth.
ÆON Mall uses various initiatives, such as sales promotions and
events, to enhance the overall customer drawing power of each mall. It also pro-
vides a variety of business support to individual tenants. An important asset for
ÆON Mall in this context is its status as the mall developer in a retail group with
a profound knowledge of consumer needs. Tenants benefit from in-depth
support that ranges from advice on merchandising and product display to
customer-service training for staff. ÆON Mall’s sales management system is an
example of unique expertise unmatched by other mall developers. This system,
which has earned an excellent reputation for reliability, uses advanced infor-
mation technology to provide precise sales data collection and analysis servic-
es in real time for all mall tenants throughout Japan.
ÆON Mall also monitors customer traffic in its malls and shares the
resulting data with tenants for use in marketing and sales promotion planning.
The linkage of tenant sales to ÆON Mall’s revenues ensures that the
Company benefits from growth in tenants’ sales. It also enhances the value of
the malls from the tenants’ viewpoint, since ÆON Mall tenants know that they
can look forward to excellent support and high sales. The result is a virtuous
circle in which highly competitive retailers seek to establish stores in malls devel-
oped by ÆON Mall, leading to further growth in ÆON Mall’s earnings.
In addition to its unique approach to development, ÆON Mall is also highly competitive in
the area of mall management. Careful attention to environmental management, security
and maintenance ensures that consumers can always enjoy a pleasant and secure shopping
experience. At the same time, asset value is maintained through systematic expansion and
renewal programs. ÆON Mall works in partnership with every tenant to enhance the
attractiveness of its malls.
ÆON MALL Co., Ltd. Annual Report 2003 pg. 19
MAINTAINING FRESHNESS
AND NOVELTY
The improvement of ÆON Mall’s earning power depends both on the estab-
lishment of new malls and on the revitalization of existing malls. Consumer needs
are continually changing, and the initial tenant mix will not remain optimal for-
ever. Despite the comprehensive support provided by ÆON Mall, some tenant
spaces grow old, and their sales stagnate. If counseling fails to bring any
improvement, ÆON Mall moves quickly to replace the tenants in question before
the overall attractiveness of the mall is affected. At the same time, ÆON Mall
strives to attract popular and interesting retailers to its malls.
In addition to this continuing review of the tenant mix, ÆON Mall also
expands and renews its malls, usually about five years after opening. This revi-
talization strategy includes provision for future expansion in initial mall
designs at the development stage.
The value of our malls lies in our ability to provide management and operational support to tenants. It ranges from sales data
analysis and regular management meetings to advice on merchandising.
Timely Updating of Malls
Year Opened Year Updated
ÆON Kashiwa SC 1992 1997, 2002
ÆON Akita SC 1993 1997, 2001
ÆON Futtsu SC 1993 1998
ÆON Shimoda SC 1995 1998, 2001
ÆON Suzuka SC 1996 2002
ÆON Sanko SC 1996 2000
ÆON Niihama SC 2001 2002
pg. 20 ÆON MALL Co., Ltd. Annual Report 2003
Better World
Taking
Direct Actionfor a
Built-in
Sustainability
ÆON MALL Co., Ltd. Annual Report 2003 pg. 21
The first principle of ÆON Mall’s management philosophy is that all business activities
should be guided by an active commitment to environmental conservation and contribution
to the community. ÆON Mall believes that shopping malls can only succeed through har-
monious coexistence and partnership with local communities. That is why it has made each
of its malls a base for wide-ranging environmental and community service activities.
pg. 22 ÆON MALL Co., Ltd. Annual Report 2003
Built-in
Sustainability
PLEASANT SHOPPING
ENVIRONMENTS FOR ALL
ÆON Mall aims to create pleasant, barrier-free shopping environments for all
people, including the physically challenged, the aged, expectant mothers and par-
ents with babies. For example, to facilitate access for people in wheelchairs,
ÆON Mall provides wide passageways and special parking facilities with
extra space to make vehicle entry and exit easier. Vending machines are
designed to allow purchases to be made from a low position, and slopes are pro-
vided alongside stairways. These initiatives are recognized and valued by
customers. All malls operated by ÆON Mall conform not only to a Japanese law
concerning building accessibility for the aged and disabled, but also with
local government welfare ordinances and other requirements.
In addition to these physical measures, ÆON Mall also works to make its
malls barrier-free on the social level. For example, staff is available to accompany
and assist any shoppers, and there is staff trained in sign language. The
ÆON Shimoda Shopping Mall is the first mall in Japan to provide senior day care.
CONSIDERATION FOR
LOCAL ENVIRONMENTS
Under a law enacted in June 2000, consideration for the environment is a
requirement for the establishment of large-scale retail stores in Japan. ÆON
Mall’s accumulated expertise, based on numerous projects undertaken to
conserve local social and natural environment and initiated long before any legal
requirements to do so, constitute a competitive advantage in shopping mall devel-
opment. For example, our malls are designed to minimize the impact on local road
traffic, including the provision of sufficient parking space to serve peak
demand, and the installation of traffic signals and guided routes. In addition,
ÆON Mall uses a two-stage opening strategy for new malls to mitigate the con-
gestion that is normally associated with the opening of such large mall complexes.
When developing a new shopping mall, ÆON Mall first considers people and the environ-
ment. It pioneered barrier-free design in Japan to create malls that all customers, includ-
ing the physically challenged, can access and use with pleasure. Out of consideration for
the environmental, ÆON Mall achieved ISO 14001 certification for all of its shopping
malls in 2001 and is continually striving to minimize the environmental load. In addi-
tion, ÆON Mall undertakes a wide variety of environmental initiatives in partnership
with local communities.
ÆON MALL Co., Ltd. Annual Report 2003 pg. 23
Tree planting has always been a feature of ÆON Mall’s development activities.
From its very first shopping mall development, it has carried out the “ÆON
Hometown Forest” program. This popular initiative aims to restore greenery by plant-
ing trees native to the region on its properties with the joint participation of local cit-
izens. During construction, a site’s existing trees are protected or relocated.
ZERO EMISSION
SHOPPING MALLS
In addition to its resource and energy conservation efforts, ÆON Mall is also
working to reduce waste emissions from its malls to zero. It is currently installing
organic waste processing equipment in all of its malls and aims to reduce emissions
to zero. Another goal is to recycle all non-organic waste through a sorted collection
program relying on the cooperation of tenants and customers.
In developing and operating shopping malls, ÆON Mall always considers people and the environment. We are well aware of our
social responsibility and carry out the appropriate measures as a good neighbor.
0
200
400
600
01 02 030099
In April 2001, all of our business
premises became accredited under the
ISO 14001 standard.
Trees Planted
(Thousand)
pg. 24 ÆON MALL Co., Ltd. Annual Report 2003
ÆON Kashiwa SC
ÆON Akita SC
ÆON Futtsu SC
ÆON Shimoda SC
ÆON Suzuka SC
ÆON Sanko SC
ÆON Kurashiki SC
Aomori Prefecture
Akita Prefecture
Chiba Prefecture
Aomori Prefecture
Mie Prefecture
Oita Prefecture
Okayama Prefecture
Our
Shopping Malls
November 28, 1992
September 10, 1993
September 25, 1993
April 22, 1995
November 29, 1996
December 7, 1996
September 21, 1999
51,238m2
65,194m2
32,425m2
48,000m2
62,508m2
31,348m2
71,706m2
ParkingSpaces
Population ofTrade Area
Location/Opening
510,946 people
226,222 people
650,000 people
276,736 people
422,789 people
715,000 people
181,834 people
4,000vehicles
2,500vehicles
3,500vehicles
4,000vehicles
1,800vehicles
2,700vehicles
2,700vehicles
Annual Sales
¥34.4 billion
¥9.3 billion
¥25.6 billion
¥18.2 billion
¥11.8 billion
¥22.7 billion
¥11.3 billion
Development Mode
Industrial land utilization
Farmland utilization
Industrial land utilization
Development withJapan RegionalDevelopmentCorporation
Participation in landredevelopmentscheme
Development withJapan RegionalDevelopmentCorporation
Farmland utilization (urban rezoning)
Commercial Space
(66,554m2, afterintroducing acinema complexin July 2003)
ÆON MALL Co., Ltd. Annual Report 2003 pg. 25
Location/Opening
ÆON Kashiwa SC
ÆON Takaoka SCÆON Akita SC
ÆON Futtsu SC
ÆON Shimoda SC
ÆON Suzuka SC
ÆON Sanko SC
ÆON Kurashiki SCÆON Narita SC
ÆON Okazaki SCÆON Kochi SC
ÆON Niihama SCÆON Higashiura SC ÆON Yamato SC
(As of February 20, 2003)
415,675 people
587,000 people
667,065 people
344,507 people
501,477 people
753,378 people
553,000 people
3,600 vehicles
1,900 vehicles
4,000 vehicles
3,500 vehicles
2,800 vehicles
3,500 vehicles
3,500 vehicles
Annual Sales
—
¥17.8 billion
¥29.6 billion
¥18.0 billion
¥22.6 billion
¥39.1 billion
¥27.2 billion
Development Mode
Farmland utilization (urban rezoning)
Industrial land utilization
Participation in land redevelopmentscheme
Industrial land utilization
Industrial land utilization
Industrial land utilization
Participation in land redevelopmentscheme
ÆON Narita SC
ÆON Okazaki SC
ÆON Kochi SC
ÆON Niihama SC
ÆON Higashiura SC
ÆON Yamato SC
ÆON Takaoka SC
65,913m2
69,118m2
54,190m2
50,215m2
56,334m2
33,153m2
64,534m2
ParkingSpaces
Population ofTrade Area
Commercial Space
Chiba Prefecture
Aichi Prefecture
Kochi Prefecture
Ehime Prefecture
Aichi Prefecture
Kanagawa Prefecture
Toyama Prefecture
March 18, 2000
September 22, 2000
December 23, 2000
June 30, 2001
July 24, 2001
December 1, 2001
September 19, 2002
pg. 26 ÆON MALL Co., Ltd. Annual Report 2003
Financial
Sec tion
Financial Section
ContentsSelected Financial Data . . . . . . . . . . . . . . . . . . . . . 27
Operational and Financial Review . . . . . . . . . . . . . 28
Consolidated Balance Sheets . . . . . . . . . . . . . . . . 32
Consolidated Statements of Income . . . . . . . . . . . 34
Consolidated Surplus Statements . . . . . . . . . . . . . 35
Consolidated Statements of Cash Flows . . . . . . . . 36
Notes to Consolidated Financial Statements . . . . 38
ÆON MALL Co., Ltd. Annual Report 2003 pg. 1
Selected Financial DataYears ended February 20
Millions of yen
CONSOLIDATED 2003 2002 2001
For the year:
Revenues
Real estate rent revenue
Insurance agency commissions
Sales of goods
Operating income
Net income
Depreciation and amortization
Capital expenditure
Per share:
Net income
Cash dividends applicable to the year
At year-end:
Total assets
Interesting-bearing debt
Total shareholders’ equity
¥25,162
23,978
1,076
107
7,007
2,393
4,662
23,786
107.56
20
148,254
76,058
16,786
¥18,292
17,152
1,030
109
4,620
1,868
3,981
25,302
83.94
20
136,298
66,014
14,445
¥30,836
29,612
1,156
67
9,041
3,878
5,104
13,188
167.73
25
154,190
70,124
23,762
Millions of yen
NON-CONSOLIDATED 2003 2002 2001 2000 1999
For the year:
Revenues
Operating income
Net income
At year-end:
Total assets
Interesting-bearing debt
Total shareholders’ equity
¥13,946
3,506
1,243
104,104
46,861
13,131
¥12,494
2,836
1,022
94,261
46,773
12,355
¥18,561
4,393
1,809
133,027
62,311
14,468
¥25,430
6,746
2,330
145,116
72,652
16,746
¥31,105
8,755
3,801
151,278
67,017
23,645
pg. 2 ÆON MALL Co., Ltd. Annual Report 2003
Operational and Financial Review
REVIEW OF CONSOLIDATED OPERATIONS
ÆON Mall and its consolidated subsidiary achieved sharp increases in
revenues and operating income for fiscal 2002 (from February 21, 2002 to
February 20, 2003). Consolidated revenues surged 22.5% from the prior year
to ¥30,836 million, while operating income climbed 29.0% to ¥9,041 million.
The increase in revenues is attributable to measures taken to vitalize
existing shopping malls and the opening of a new mall. Revitalization
began with the large-scale renovation of the ÆON Kashiwa Shopping
Center in April 2002. This facility was originally developed as two separate
buildings divided by a village road, but Kashiwa Village did away with the
road to enable the Company to unite the two buildings into a single struc-
ture. The change increased customer traffic and made it possible to intro-
duce new specialty shops, centered on highly fashionable brands.
In June 2002, the Company greatly increased the floor space of the
ÆON Suzuka Shopping Center. It acquired a tract of idle industrial land,
about 20,000 square meters in area, to the west of the existing shopping
complex site. Twenty-six new specialty stores opened in the new facility,
including a large electrical appliance store, a clinic, educational facilities,
a daycare center, a pet shop, and other new specialty shops. The store loca-
tions within the existing mall were reorganize, as well. In July, a cinema
complex was introduced at the Niihama Shopping Center, which had
opened the previous year.
The Company engaged in aggressive advertising activities, staged
customer-participation events, and made improvements to facilities in
response to customer requests at existing malls, including the three
already mentioned. As a result of these initiatives, the ten existing shopping
malls for which prior-year comparisons are possible saw increases in tenant
sales. The aggregate year-on-year increase for the ten malls was 10.1%,
excluding the effect of the introduction of the large electrical appliance
store. The newly opened ÆON Takaoka Shopping Center attracted many cus-
tomers from outside the anticipated catchment area, and its performance has
exceeded expectations.
Insurance agency operations also recorded a revenue increase by
enhancing the ability to meet diversifying customer needs rapidly with
optimal insurance plans and improving services. During the year under
0
10,000
20,000
30,000
40,000
02 0301
Revenues
(Millions of yen)
0
10,000
20,000
30,000
02 0301
Real estate rent revenue
(Millions of yen)
0
500
1,000
1,500
02 0301
Insurance agency
commissions
(Millions of yen)
ÆON MALL Co., Ltd. Annual Report 2003 pg. 3
review, the Company focused on individual customers, stimulating robust
sales of annuities, cancer insurance, and medical insurance. Sales of auto
insurance also developed favorably, as we took full advantage of our position
as a member of ÆON. The Company also commenced over-the-counter sales
of insurance at shopping malls, in an expansion of sales channels.
Dedicated insurance counters opened at the ÆON Yamato Shopping
Center and the ÆON Higashiura Shopping Center, targeting mall cus-
tomers and workers. In the corporate insurance sector as well, meticulous
consultative selling led to an increase in the number of policies.
The operating margin stood at 29.3%, an improvement of 1.5 percent-
age points over the previous term. Although an increase in the cost of
operations is attendant on business expansion, the Company succeeded in
reducing selling, general and administrative expenses to a level below that
of the previous year.
With regard to other income and expenditures, we booked a loss on the
retirement of a store facility that was in operation before the start of shop-
ping mall operations, and a gain on the return of the substitutional portion
of the welfare pension fund. Net profit for the year under review increased
62.1% compared to the previous year, to ¥3,878 million.
Earnings from tenant rents by shopping mallFor the year ended February 20
Millions of yen %
2003 2002 YoY
ÆON Kashiwa SC 1,179 1,175 100.4ÆON Akita SC 2,261 2,109 107.2ÆON Futtsu SC 1,095 1,072 102.1ÆON Shimoda SC 1,865 1,836 101.6ÆON Suzuka SC 2,482 2,107 117.8ÆON Sanko SC 812 782 103.9ÆON Kurashiki SC 2,947 2,853 103.3ÆON Narita SC 2,464 2,272 108.5ÆON Okazaki SC 2,169 2,102 103.2ÆON Kochi SC 2,135 2,032 105.1ÆON Niihama SC 1,621 1,131 (8 month) -ÆON Higashiura SC 2,391 1,472 (7 month) -ÆON Yamato SC 2,388 622 (2 month) -ÆON Takaoka SC 1,327 (5 month) - -
0
1,000
2,000
3,000
5,000
02 0301
4,000
0
40
80
120
200
160
Net income/
Net income per share
(Millions of yen) (yen)
0
2,000
4,000
6,000
10,000
02 0301
8,000
0
10.0
20.0
30.0
50.0
40.0
Operating income/
Operating income margin
(Millions of yen) (%)
pg. 4 ÆON MALL Co., Ltd. Annual Report 2003
FINANCIAL POSITION
In parallel with the expanding scale of operations, total assets for fiscal
2002 increased ¥5,936 million year on year to ¥154,190 million. Current assets
increased by ¥3,283 million. Fixed assets increased by ¥2,702 million as a
result of floor space expansion and facility refurbishment at existing shopping
malls and the opening of a new shopping mall. The Company liquidated a por-
tion of guarantee deposits receivable, resulting in a decrease in fixed assets
of ¥4,788 million compared to the situation if liquidation had not been
employed. Subsequently, return on assets improved from 1.7% to 2.6%.
Total liabilities decreased by ¥1,071 million compared with the previous
year to ¥130,288 million. This is because the lenders were repaid using funds
obtained from liquidation of guarantee deposits receivable. The balance of
interest-bearing debt at the year-end decreased by ¥5,933 million to
¥70,125 million, and the interest-bearing debt to total assets ratio
improved 5.8 percentage points, from 51.3% to 45.5%, while the debt-to-
equity ratio improved from 4.5 times to 2.9 times.
Total shareholders’ equity increased by ¥6,976 million from the previ-
ous term to ¥23,762 million, due to the growth in net income and the
public offering of shares. The equity ratio increased from 11.3% to 15.4%,
while return on equity improved from 15.3% to 19.1%.
CASH FLOWS
For fiscal 2002, operating activities provided net cash of ¥10,824 million. This
was an ¥1,838 million increase compared to the prior year. Net cash used in
investing activities totaled ¥4,675 million. Net cash used in financing
activities was ¥2,859 million, a rise of ¥12,452 million. As a result, the clos-
ing balance of cash and cash equivalents at the fiscal year-end increased by
¥3,289 million year on year to ¥6,142 million.
The increase in net cash provided by operating activities is attributable
to the steady growth in profits owing to the opening of a new shopping mall,
the annual contribution of malls opened during the previous year, and the
vitalization of existing facilities.
The Company used ¥1,310 million for the opening of a new shopping
mall and for increasing floor space and refurbishment at existing shopping
malls. However, the partial liquidation of guarantee deposits receivable
offset these outflows, and the ending balance was confined to ¥4,675 million.
The rise in net cash used in financing activities is due to the repayment
0
50,000
100,000
200,000
02 0301
150,000
0
1.0
2.0
4.0
3.0
Total assets/
Total assets turnover
(Millions of yen) (Times)
0
20,000
40,000
100,000
02 0301
80,000
0
1.0
2.0
60,000 3.0
5.0
4.0
Interesting-bearing debt/
Debt-equity ratio
(Millions of yen) (Times)
0
10,000
30,000
02 03010
10 .0
20,000 20.0
30.0
Total shareholders’ equity/
Equity ratio
(Millions of yen) (%)
ÆON MALL Co., Ltd. Annual Report 2003 pg. 5
of ¥14,365 million in long-term borrowings using funds obtained from the liq-
uidation of guarantee deposits receivable, which was partially counterbal-
anced by an inflow of ¥3,525 million from the public offering of shares. As
the Company considers profit distribution to shareholders to be an impor-
tant management duty, it increased the dividend per share from ¥20 to ¥25
for the year under review, with a ¥5 special dividend to commemorate the
public offering of shares.
CAPITAL EXPENDITURES
Capital expenditure for the year under review climbed by ¥10,598 million
compared to the previous period to ¥13,188 million as a result of floor-space
expansion and refurbishment at three existing shopping malls and the
opening of a new shopping mall. Of this amount, ¥4,153 million was
obtained from guarantee deposits received from tenants.
The Company’s basic policy concerning profit distribution is to place
importance on the continuing provision of stable dividends to shareholders
while at the same time using profits to maintain ample internal reserves for
capital investment to strengthen the business infrastructure.
0
5.0
20.0
02 0301
10.0
15.0
ROE/ROA
(%)
0
10,000
20,000
30,000
02 0301
Capital expenditure
(Millions of yen)
pg. 32 ÆON MALL Co., Ltd. Annual Report 2003
Consolidated Balance SheetsAs of February 20, 2003 and 2002
Millions of yen
ASSETS 2003 2002
Current assets:
Cash on hand and in banks
Accounts receivable—trade
Inventories
Prepaid expenses
Deferred tax assets—current (Note 9)
Others
Less: Allowance for doubtful accounts
Total current assets
Property and equipment:
Buildings and structures
Machinery and transportation equipment
Tools and fixtures
Less: Accumulated depreciation
Land
Construction in progress
Net property and equipment
Intangibles
Investments and other assets:
Investments in securities (Notes 2 and 3)
Long-term loans receivable
Long-term prepaid expenses
Deferred tax assets—non-current (Note 9)
Guarantee deposits receivable (Note 7)
Others
Less: Allowance for doubtful accounts
Total investments and other assets
Total assets
Accompanying notes are an integral part of the financial statements.
¥ 3,179
953
44
209
137
1,704
(10)
6,220
95,479
525
4,095
(26,916)
51,209
364
124,758
353
1,201
14
2,085
52
13,037
568
(37)
16,922
¥ 148,254
¥ 6,462
1,005
28
197
204
1,564
(10)
9,453
104,761
527
4,576
(29,817)
52,123
135
132,306
349
1,258
14
2,089
234
8,269
255
(39)
12,081
¥ 154,190
Millions of yen
LIABILITIES AND SHAREHOLDERS’ EQUITY 2003 2002
Current liabilities:
Accounts payable—trade
Short-term loans (Note 4)
Current portion of long-term loans (Note 4)
Income taxes payable
Deposits from specialty shops
Deposits received
Reserve for bonuses
Notes payable for facilities
Others
Total current liabilities
Long-term liabilities:
Long-term loans (Note 4)
Deferred tax liabilities—non-current (Note 9)
Reserve for employees’ retirement benefits
Reserve for directors’ retirement benefits
Guarantee deposits received (Note 4)
Others
Total long-term liabilities
Total liabilities
Minority interests
Shareholders’ equity:
Common stock, authorized: 80,000,000
Issued and outstanding:
2003—23,754,680
2002—22,254,680
Capital surplus
Retained earnings
Unrecognized gains or losses on
available-for-sale securities
Total shareholders’ equity
Total liabilities, minority interests and shareholders’ equity
Accompanying notes are an integral part of the financial statements.
ÆON MALL Co., Ltd. Annual Report 2003 pg. 33
¥ 946
2,265
7,499
1,480
3,083
1,319
35
4,912
1,858
23,400
66,294
40
582
113
40,865
64
107,959
131,359
107
4,662
3,311
8,386
425
16,786
¥ 148,254
¥ 993
2,035
8,738
2,120
3,794
1,481
41
5,143
2,845
27,193
59,351
—
280
106
43,177
178
103,094
130,288
140
6,065
5,434
11,786
476
23,762
¥ 154,190
pg. 34 ÆON MALL Co., Ltd. Annual Report 2003
Consolidated Statements of IncomeFor the years ended February 20, 2003 and 2002
Millions of yen
2003 2002
Revenues:
Real estate rent revenue
Insurance agency commissions
Sales of goods
Cost of revenues:
Cost of real estate rent revenue
Cost of goods sold
Gross profit
Selling, general & administrative expenses (Note 10):
Operating income
Non-operating income (expenses):
Interest—net
Dividend income
Cancellation penalty for store withdrawal
Insurance money received
Subsidies and charges received for construction
Others—net
Recurring income
Non-recurring gains (losses):
Gains on returning substitutional portion of welfare pension fund
Cancellation penalty for core tenant withdrawal
Gains on sales of investments in securities
Losses on retirement and sales of property and equipment (Note 11)
Loss on revaluation of investments in securities
Losses on discontinuance of development
Special depreciation of idle assets
Amortization of unrecognized transition obligation arising
from change in accounting standards for retirement benefits
Others—net
Income before income taxes
Income taxes:
Current
Deferred
Minority interests in net income of consolidated subsidiary
Net income
Accompanying notes are an integral part of the financial statements.
¥ 23,978
1,076
107
25,162
14,977
96
15,073
10,088
3,081
7,007
(1,554)
13
61
—
—
(19)
(1,498)
5,508
—
—
16
(94)
(38)
(141)
(377)
(644)
(5)
(1,285)
4,222
2,251
(453)
1,797
31
¥ 2,393
¥ 29,612
1,156
67
30,836
18,677
60
18,737
12,098
3,057
9,041
(1,518)
42
51
23
20
(128)
(1,508)
7,532
328
40
—
(975)
—
—
—
—
(82)
(689)
6,843
3,251
(325)
2,926
38
¥ 3,878
ÆON MALL Co., Ltd. Annual Report 2003 pg. 35
Consolidated Surplus Statements For the years ended February, 20 2003 and 2002
Millions of yen
2003 2002
Capital surplus:
Beginning balance
Increase in capital surplus:
Share issuance for capital increase
Ending balance
Retained earnings:
Beginning balance
Increase in retained earnings:
Net income
Decrease in retained earnings:
Cash dividends
Directors’ bonuses
Ending balance
Accompanying notes are an integral part of the financial statements.
¥ 3,311
—
3,311
6,470
2,393
445
32
¥ 8,386
¥ 3,311
2,122
5,434
8,386
3,878
445
34
¥ 11,786
pg. 36 ÆON MALL Co., Ltd. Annual Report 2003
Consolidated Statements of Cash FlowsFor the years ended February 20, 2003 and 2002
Millions of yen
2003 2002
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Increase in allowance for doubtful accounts
Increase in reserve for bonuses
Increase (Decrease) in reserve for employees’ retirement benefits
Interest and dividend income
Interest expenses
Special depreciation of idle assets
Revaluation losses of investments in securities
Net gains (losses) on sales of investments in securities
Losses on sales of property and equipment
Losses on retirement of property and equipment
Losses on discontinuance of development
Decrease (Increase) in accounts receivable—trade
Decrease (Increase) in inventories
Decrease (Increase) in other current assets
Increase in accounts payable—trade
Increase (Decrease) in consumption taxes payable
Increase in other current liabilities
Payment of directors’ bonuses
Others
Subtotal
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
(Continued on following page.)
¥ 4,222
4,622
24
2
572
(36)
1,578
377
38
(13)
2
84
141
(168)
(21)
22
87
224
894
(32)
(321)
12,303
29
(1,584)
(1,762)
8,986
¥ 6,843
5,104
2
5
(302)
(67)
1,543
—
—
0
4
835
—
(51)
16
(1)
47
(109)
914
(34)
115
14,866
80
(1,509)
(2,612)
10,824
Cash flows from investing activities:
Fund transfer to time deposits
Withdrawal of time deposits
Acquisition of property and equipment
Proceeds from sales of property and equipment
Acquisition of intangibles
Proceeds from sales of intangibles
Acquisition of investments in securities
Proceeds from sales of investments in securities
Increase in loans receivable
Deposit of guarantee deposits receivable
Collection of guarantee deposits receivable
Proceeds from liquidation of guarantee deposits receivable
Repayment of guarantee deposits received
Receipt of guarantee deposits
Others
Net cash used in investing activities
Cash flows from financing activities:
Net decrease of short-term loans
Borrowings of long-term loans
Repayment of long-term loans
Proceeds from share issuance
Cash dividends
Cash dividends to minority shareholders
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Accompanying notes are an integral part of financial statements.
ÆON MALL Co., Ltd. Annual Report 2003 pg. 37
(30)
189
(21,730)
1
(89)
—
(8)
208
—
(1,967)
22
—
(1,239)
5,725
52
(18,866)
(3,160)
17,760
(4,556)
—
(445)
(6)
9,592
(287)
3,140
¥ 2,853
—
137
(12,982)
584
(122)
42
(8)
39
(58)
(83)
67
4,788
(1,404)
4,153
171
(4,675)
(230)
8,660
(14,363)
3,525
(445)
(6)
(2,859)
3,289
2,853
¥ 6,142
pg. 38 ÆON MALL Co., Ltd. Annual Report 2003
Accounting principles
The accompanying consolidated financial statements of ÆON Mall Co., Ltd.
(“the Company”) and its consolidated subsidiary are translations of its consol-
idated financial statements issued domestically in Japan and are not audited.
The original financial statements are prepared from accounts and records
maintained by the Company and its consolidated subsidiary in accordance
with the provision set fourth in the Japanese Commercial Code and Securities
and Exchange Law and in conformity with accounting principles and practices
generally accepted in Japan, which are different from the accounting and
disclosure requirements of International Accounting Standards. In translating,
certain reclassifications and rearrangements have been made to the original
financial statements for the convenience of readers outside Japan.
All yen figures are rounded down to the nearest million. Accordingly,
breakdown figures may not add up to the sums.
New accounting standards:
Accounting for treasury stock and reduction of legal reserves
Effective February 21, 2002, the Company adopted, earlier than required,
“Accounting Standards for Treasury Stock and Reduction of Legal Reserves”
(Financial Accounting Standards No. 1). This does not affect profit or loss for
the year ended February 20, 2003.
In accordance with the proviso of Item 2 of Additional Clauses of
“Ministerial Ordinance Partially Amending Regulations for Terms, Forms and
Preparation Method of Consolidated Financial Statements” (the Cabinet Office
Ordinance No. 11, dated March 26, 2002), shareholders’ equity of the consol-
idated balance sheets and the consolidated surplus statements were
presented under the regulations incorporating the above amendment.
1. Basis of Presentation ofConsolidated FinancialStatements
2. Summary of significantaccounting policies
Scope of consolidation
As of February 20, 2003 and 2002, the Company had one subsidiary,
Shimoda Town Co., Ltd., which is consolidated. There are no subsidiaries to
which the equity method is applied nor which are not consolidated. The
balance sheet date of the consolidated subsidiary is the same as that of the
Company.
Marketable securities and investments in securities
a. Held-to-maturity bonds
Held-to-maturity bonds are stated at cost using the straight-line method, after
accounting for premium or discount on acquisitions.
b. Available-for-sale securities
Available-for-sale securities with market value are stated at fair market value
as determined by market prices on the closing date of the fiscal year. Net
unrealized gains or losses on these securities are reported as a separate item
Notes to Consolidated Financial StatementsFor the years ended February 20, 2003 and 2002
ÆON MALL Co., Ltd. Annual Report 2003 pg. 39
in shareholders’ equity at a net-of-tax amount. Cost of sales is calculated by
the moving-average method.
Available-for-sale securities without market value are stated at cost using
the moving-average method.
Inventories
Merchandise is stated at cost using the gross-average method. Supplies are
stated at cost using the last purchased cost method.
Depreciation
a. Property and equipment
Depreciation of property and equipment is computed by the straight-line
method over their useful economic life. The useful economic lives of property
and equipment are as follows.
Buildings and structures 3 to 39 years
Tools and fixtures 2 to 20 years
b. Intangibles
Intangibles are stated according to the straight-line method. Software for
internal use is depreciated over the estimated period of internal use (five years).
c. Long-term prepaid expenses
Long-term prepaid expenses are charged to income evenly over contract periods.
Common stock issuance costs
Common stock issuance costs are directly charged to income as incurred.
Allowances and reserves
a. Allowance for doubtful accounts
Allowance for general credits is determined by the actual bad debt ratio,
according to past credit loss experience, while allowance for specific credits,
such as credits with financial difficulty, is determined by estimating
uncollectable amounts by examining collectibility on an individual basis.
b. Reserve for bonuses
Reserves for bonuses are provided for the payment of bonuses to regular
employees and part-time employees in an amount deemed necessary to be
charged to the accounting period out of the estimated amount to be paid.
c. Reserve for employees’ retirement benefits
In order to provide for retirement benefits for employees, the Company has
accounted for the amount deemed to have been incurred at the end of the
fiscal years, based on the estimated amount of retirement benefit obligation
and pension assets at the end of fiscal years.
Unrecognized actuarial differences were amortized from the next fiscal
year by the straight-line method over the fixed number of years (10 years),
which do not exceed the average remaining service period of employees.
An unrecognized transition obligation amount of ¥644 million arising
from the adoption of a new accounting standard was fully charged to income
pg. 40 ÆON MALL Co., Ltd. Annual Report 2003
for the year ended February 20, 2002.
The Company has participated in the ÆON Welfare Pension Fund, which
was established by its parent company, ÆON Co., Ltd. On September 1,
2002, the Company obtained approval from the Minister of Health, Labour
and Welfare for exemption of obligations of future benefit payments with
respect to the substitutional portion, in accordance with the enforcement of
the Defined Benefit Corporate Pension Plan Law. In application of the interim
measures provided in Article 47-2 of “Practical Guidance for Accounting for
Retirement Benefits” (Accounting Systems Committee report No. 13, the
Japanese Institute of Certified Public Accountants), the Company accounted
for retirement benefit obligations for the substitutional portion and pension
assets equivalent to the returned portion as they were nullified as of the date
on which the approval was obtained. As a result, the “gains on returning
substitutional portion of welfare pension fund” amounting to ¥328 million has
been recorded as a non-recurring gain for the year ended February 20, 2003.
d. Reserve for directors’ retirement benefits
Reserve for directors’ retirement benefits are provided in an amount required
to be paid at the end of each fiscal year, based on internal regulations.
Leases
Finance lease transactions, except for those that are deemed to transfer
ownership of the leased assets to the lessee, are accounted for under the same
method as operating lease transactions.
Interest on construction included in costs
Interest expenses for loans borrowed for long-term, large-scale development of
shopping malls are included in construction in progress until the opening of
shopping malls. This amount is then transferred as acquisition costs of
property and equipment at the opening.
There were no such interest expenses during the fiscal year ended
February 2003 and 2002 booked in the accompanying consolidated financial
statements.
Consumption taxes
Consumption taxes have been excluded from amounts shown on the
accompanying consolidated financial statements.
Appropriation of retained earnings
Consolidated surplus statements have been prepared on the basis of appropri-
ations of retained earnings approved by the general shareholders’ meetings
held during the corresponding fiscal year.
Cash and cash equivalents
Cash and cash equivalents in the consolidated statements of cash flows
consist of cash on hand, demand deposits and highly liquid investments with
original maturities of three months or less and having only insignificant risk
in value fluctuations.
Money deposited as insurance premiums is cash on hand and in banks
ÆON MALL Co., Ltd. Annual Report 2003 pg. 41
in the accounts of the Company, but is prohibited from being appropriated for
other purposes. Such cash and deposits belong to insurance companies in
effect and are therefore excluded from cash and cash equivalents.
(1) Held-to-maturity bonds with market value
Millions of yen
As of February 20, 2003
Book value Market value Difference
Government bonds, local municipal bonds, etc. with market value exceeding book value — — —
Government bonds, local municipal bonds, etc. with market value not exceeding book value — — —
Millions of yen
As of February 20, 2002
Book value Market value Difference
Government bonds, local municipalbonds, etc. with market value exceeding book value ¥ 9 ¥ 9 ¥ 0 Government bonds, local municipal bonds, etc. with market value not exceeding book value — — —
(2) Available-for-sale securities with market value
Millions of yen
As of February 20, 2003
Acquisition cost Book value Difference
Equity securities with book value exceeding acquisition cost ¥ 258 ¥ 1,095 ¥ 836
Equity securities with market value not exceeding acquisition cost 63 48 (14)
Total ¥ 322 1,143 ¥ 821
Millions of yen
As of February 20, 2002
Acquisition cost Book value Difference
Equity securities with book value exceeding acquisition cost ¥ 200 ¥ 951 ¥ 751
Equity securities with market value not exceeding acquisition cost 113 95 (18)
Total ¥ 313 ¥ 1,046 ¥ 733 Impairment losses of ¥38 million were recognized for certain equity securities.
(3) A summary of available-for-sale securities sold during the years ended
February 20, 2003 and 2002 is as follows:
Millions of yen
2003 2002
Proceeds from sales ¥ — ¥ 208Total gains on sales ¥ — ¥ 16Total losses on sales ¥ — ¥ 3
3. Marketable securities andinvestments in securities
The assets pledged as collateral for the Company’s liabilities as of February
20, 2003 and 2002 were as follows:
Millions of yen
2003 2002
Pledged assetsBuildings and structures ¥ 69,540 ¥ 63,169 Land 50,407 44,070 Total ¥ 119,948 ¥ 107,239
Secured liabilitiesShort-term loans ¥2,035 ¥2,265Current portion of long-term loans 8,338 6,909 Long-term loans 57,751 60,384Guarantee deposits received 15,037 14,787 Total ¥ 83,162 ¥ 84,346
pg. 42 ÆON MALL Co., Ltd. Annual Report 2003
The assets deposited under Article 25 of the Housing Land and Building
Transaction Broker Law as of February 20, 2003 and 2002 were as follows:
Millions of yen
2003 2002
Investments in securities — ¥ 9
5. Deposited assets
(1) Finance lease transactions without transfer of ownership to the lessee
a. A summary of assumed amounts of acquisition costs, accumulated
depreciation and the net book value as of February 20, 2003 and 2002 is as
follows:
6. Lease transactions
4. Pledged assets andsecured liabilities
(4) Available-for-sale securities without market value as of February 20, 2003
and 2002 were as follows:
Millions of yen
2003 2002
Book value
Unlisted equity securities ¥ 114 ¥ 144
(5) Future redemption of available-for-sale securities with maturity and held-
to-maturity bonds is as follows:
Millions of yen
Government bonds 2003 2002
Due within one year — 9Due after one to five years — —Due after five to ten years — —Due after ten years — —Note: These government bonds will mature in less than one year. However, as they are deposited
assets under Article 25 of the Housing Land and Building Transaction Broker Law, governmentbonds of the same kind are shown under investments in securities for every fiscal year.
ÆON MALL Co., Ltd. Annual Report 2003 pg. 43
Millions of yen
2003
Acquisition Accumulated Net book cost depreciation value
Machinery and transportation equipment ¥ 1,818 ¥ 454 ¥ 1,363Tools and fixtures 1,214 498 715Total ¥ 3,032 ¥ 952 ¥ 2,079
Millions of yen
2002
Acquisition Accumulated Net book cost depreciation value
Machinery and transportation equipment ¥ 1,810 ¥ 265 ¥ 1,544Tools and fixtures 826 343 482Total ¥ 2,636 ¥ 608 ¥ 2,027
b. Future lease payments subsequent to February 20, 2003 and 2002 are as
follows:
Millions of yen
2003 2002
Due within one year ¥ 361 ¥ 304Over one year 1,790 1,768Total ¥ 2,151 ¥ 2,073
c. Lease payments, assumed depreciation expenses and assumed interest
expenses for the year ended February 20, 2003 and 2002 are as follows:
Millions of yen
2003 2002
Lease payments ¥ 439 ¥ 347Assumed depreciation expenses 386 298Assumed interest expenses ¥ 81 ¥ 74
d. Calculation method of assumed depreciation expenses
Assumed depreciation expenses are computed using the straight-line method
over the lease term, assuming no residual value.
e. Calculation method of assumed interest expenses
Assumed interest expenses, which are the difference between total lease
payments and assumed acquisition costs of leased assets, are allocated in
each accounting period based on the interest method.
(2) Operating lease transactions
Future lease payments subsequent to February 20, 2003 and 2002 are as follows:
Millions of yen
2003 2002
Due within one year ¥ 834 ¥ 868Over one year 14,634 16,107 Total ¥ 15,468 ¥ 16,976
pg. 44 ÆON MALL Co., Ltd. Annual Report 2003
8. Employees’ retirementbenefits
The Company adopts a defined welfare pension fund plan and a lump-sum
retirement benefit advance payment system that have been established by
ÆON Co. Ltd. and certain of its domestic subsidiaries. On September1, 2002,
the Company obtained approval from the Minister of Health, Labour and
Welfare for exemption from obligations of future benefit payments with respect
to the substitutional portion.
The consolidated subsidiary is a member of the Organization for Workers’
Retirement Allowance Mutual Aid.
The funded status and amounts recognized in the accompanying consol-
idated balance sheet as of February 20, 2003 and 2002 are as follows:
Millions of yen
2003 2002
Retirement benefit obligation ¥ (1,485) ¥ (2,270)Plan assets 631 1,286Retirement benefit obligation in excess of plan assets (854) (983)Unrecognized actuarial difference 574 401Reserve for employees’ retirement benefit ¥ (280) ¥ (582)
The retirement benefit obligation as of February 20, 2002 includes the substi-
tutional portion of the welfare pension fund. The figures incorporate the
normalization of the benefit payment multiplier of 5% for the basic portion
and the raise in benefit age for the substitutional portion accompanying the
amendment to the Employee Pension Insurance Law effected in March 2000,
and the effect has been reflected in the net transition obligation.
The Company adopted the interim measures provided in Article 47-2 of
“Practical Guidance for Accounting for Retirement Benefits (Interim Report)”
(Accounting Systems Committee report No. 13, the Japanese Institute of
Certified Public Accountants) to account for returning the substitutional
7. Guarantee deposits receivable
Regarding the guarantee deposits receivable pertaining to leases of stores
constructed with the construction cooperation fund, the Company has sold to J.
One Asset Corporation, which is a special-purpose company, the rights of recovery
pursuant to the provisions of monetary loan agreement in the store lease contracts
on November, 2002.
For the guarantee deposits receivable, which were accounted for as sold
through the said transaction (the balance to be repaid on February 20, 2003
was ¥4,788 million), an option to sell the rights of recovery to ÆON Co., Ltd.
is given in cases where a specified occurence, such as the case where the
original debtors become insolvent. When ÆON Co., Ltd. purchases the rights
of recovery through exercise of this option, the said company has an option to
sell the said rights of recovery to the Company
Gains or losses on cancellation of interest swap contracts for hedging
purposes, which will be cancelled when J. One Asset Corporation exercises its
option, will belong to Aeon Co., Ltd. However, when ÆON Co., Ltd. exercises
its option to sell to the Company the rights of recovery it purchased, the said
gains or losses will belong to the Company.
The aggregated losses on revaluation of such interest rate swap contracts
as of February 20, 2003 was ¥149 million.
ÆON MALL Co., Ltd. Annual Report 2003 pg. 45
portion of the welfare pension fund plan. As a result, the retirement benefit
obligation for the substitutional portion and pension assets equivalent to the
returned portion have been accounted for for the year ended February 20,
2003, as they have been nullified as of the date on which the approval for
exemption from obligations of future benefit payment was obtained from the
Minister of Health, Labour and Welfare. The plan assets, assessed as
equivalent to the returned portion as of February 20, 2003, was ¥707 million.
The net periodic cost of retirement benefits for the years ended February
20, 2003 and 2002 consisted of the following:
Millions of yen
2003 2002
Service cost ¥ 69 ¥ 67Interest cost 51 50Expected return on plan assets (40) (57)Amortization of unrecognized actuarial difference 30 —Amortization of net transition obligation — 644Retirement benefit expenses 110 705Gains on returning substitutional portion of welfare pension fund (328) —
Total ¥ (217) ¥ 705
Service cost excludes the amount of employees’ contribution to the welfare
pension fund and includes advance payments of lump-sum retirement benefits
to employees under the lump-sum retirement benefit advance payment system.
In addition to the retirement benefit expenses above, premiums paid to the
Organization for Workers’ Retirement Allowance Mutual Aid by the subsidiary (less
than ¥1 million for both the previous fiscal year and the current fiscal year) have
been accounted for as cost of real estate rent revenue.
The assumptions and the basis for the calculation of employees’ retirement
benefits for the years ended February 20, 2003 and 2002 are as follows:
2003 2002
Allocation method of projected benefit obligation: Straight-line method
Discount rate 2.4% 3.0%Expected rate of return on plan assets 4.06% 5.29%Amortization period of unrecognized actuarial difference 10 years 10 years
Amortization period of net transition obligation —
Starting from thefollowing year ofthe term incurred
Fully changedto income asincurred
pg. 46 ÆON MALL Co., Ltd. Annual Report 2003
9. Income taxes The significant components of deferred tax assets and liabilities as of February
20, 2003 and 2002 are summarized as follows:
Millions of yen
2003 2002
Deferred tax assets—current:Enterprise taxes payable ¥ 190 ¥ 133Other 14 4
Total 204 ¥ 137 Deferred tax assets—non-current:
Property and equipment ¥ 892 ¥ 433Allowance for doubtful accounts 12 13Reserve for employees’ retirement benefits 159 241Long-term prepaid expenses 62 132Elimination of unrealized gains 19 26Other 95 101Subtotal 1,242 948Offset against deferred tax liabilities (1,007) (895)
Net deferred tax assets ¥ 234 ¥ 52Deferred tax liabilities—non-current:
Reserve for reduction entry of fixed assets ¥ 282 292Reserve for special depreciation 380 334Unrecognized losses on available-for-sale securities 344 308Subtotal 1007 935Offset against deferred tax assets (1,007) (895)
Net deferred tax liabilities ¥ — ¥ 40
The difference between the statutory tax rate and the effective tax rate after
applying tax-effect accounting was insignificant for the years ended February 20,
2003 and 2002 and are as follows:
2003 2002
Statutory tax rate 42.0% 42.0%Effective tax rate 42.8% 42.6%
The enterprise tax rate is to be changed effective from the fiscal years
beginning on and after April 1, 2004, as a result of the introduction of a tax
on gross profit to the enterprise tax, due to promulgation of the “Law
Amending Part of Regional Tax Laws” (2003 Law No. 9) on March 31, 2003.
Accordingly, as regards the temporary difference, which is expected to
become zero in the fiscal years beginning on and after April 1, 2004, the
statutory tax rate, which will be used to calculate deferred tax assets and
deferred tax liabilities, will be changed from 42.0% to 40.6%. The amount of
the variance incurred from recalculation of deferred tax assets and deferred
tax liabilities due to the change in the statutory tax rate is ¥6 million. The
amount debited to income taxes (deferred) in the following consolidated fiscal
year is ¥17 million.
ÆON MALL Co., Ltd. Annual Report 2003 pg. 47
10. Selling, general andadministrative expenses
The significant components of selling, general and administrative expenses for
the years ended February 20, 2003 and 2002 were as follows:
Millions of yen
2003 2002
Employees’ salaries and bonuses ¥ 1,096 ¥ 1,080Provision for reserve for bonuses 27 24Retirement benefit expenses 82 35Provision for reserve for directors’ retirement benefits 28 26Legal welfare expenses 219 205Travel expenses 285 282Rent 157 219Depreciation expenses 5 5Others 1,156 1,202Total ¥ 3,057 ¥ 3,081
The significant components of losses on retirement and sales of property and
equipment for the years ended February 20, 2003 and 2002 is as follows:
Millions of yen
2003 2002
Retirement of buildings and structures ¥ 944 ¥ 76Retirement of tools and fixtures 26 13Sales of tools and fixtures — 2Others 5 1 Total ¥ 975 ¥ 94
11. Losses on retirement andsales of property andequipment
Reconciliation between the balance of cash and cash equivalents and the
balances shown in the consolidated balance sheet as of February 20, 2003
and 2002 is as follows:
Millions of yen
As of February 20 2003 2002
Cash on hand and in banks ¥ 6,462 ¥ 3,179Money deposited as insurance premiums (320) (326) Cash and cash equivalents ¥ 6,142 ¥ 2,853
12. Cash and cash equivalents
The Company has no derivative transactions.13. Derivative transactions
14. Earnings per share2003 2002
Net assets per share ¥ 1000.33 ¥ 754.32Earnings per share ¥ 167.73 ¥ 107.56
Diluted net income per share is not presented, since neither corporate bonds
with warrants nor convertible bonds have been issued.
pg. 48 ÆON MALL Co., Ltd. Annual Report 2003
15. Related party transactions Material transactions with the parent company, individuals and associated
companies for the years ended February 20, 2003 and 2002 were as follows:
Transaction amount Year-end balance
Millions of yen Millions of yen
Nature 2003 2002 Account 2003 2003Relations
Parent company
Immediaterelative ofdirector
Subsidiary ofthe parentcompany
Subsidiary of the parentcompany
Name
ÆON Co. Ltd.
TakuyaOkada
ÆON TechnoService Co.,Ltd.
TachibanaDepartmentStore Co., Ltd.
Scope of business
General merchandiseretailing
Chief directorof the ÆONEnvironmentFoundation
Facility maintenance
Departmentstore
Percentage of equity ownership(%)
(Owned)Direct–56.4Indirect–2.5
—
(Own)Direct–0.4(Owned)Indirect–0.4
—
Lease ofshopping mallfacilities
Guaranteedepositsreceivedaccompanyinglease ofshoppingcenterfacilities
Assistance forenvironmentalconservationactivities
Maintenanceof shoppingmall facilities
Guaranteedepositsreceivedaccompanyinglease ofshoppingcenterfacilities
¥ 6,465
¥ 735
—
¥ 2,909
—
¥ 5,605
¥ 1,102
¥ 6
¥ 2,424
—
Accountsreceivable
Guaranteedepositsreceived
Accountsreceivable
Guaranteedepositsreceived
¥ 564
¥ 15,106
—
¥ 258
¥ 1,582
¥ 580
¥ 14,769
—
¥ 185
¥ 1,753
Notes1. Consumption taxes are excluded from transaction amounts, but are included in the year-end balances. 2. Trading conditions and decision policy of trading conditions
(1) Rents ÆON Co., Ltd. pays for the shopping mall facilities are adjusted every three years by store lease agreement in consideration ofchanges in economic conditions, taxes and other public charges, etc.
(2) As regards guarantee deposits received from ÆON Co., Ltd, and which accompany the lease of shopping mall facilities, a “constructioncooperation fund” and rent deposits are collected when a store lease agreement is entered into. The construction cooperation fund will berepaid in equal installments over 10 years after a grace period of a full 10 years.
(3) Transaction amount with ÆON Techno Service Co., Ltd. are decided upon negotiation based on market prices.(4) Rents Tachibana Department Store Co., Ltd. pays for the shopping mall facilities are adjusted every three years by store lease agreement in
consideration of changes in economic conditions, taxes and other public charges, etc.(5) As regards guarantee deposits received from Tachibana Department Store Co., Ltd., and which accompany the lease of shopping facilities,
the construction cooperation fund and rent deposits are collected when a store lease agreement is entered into. The constructioncooperation fund will be repaid in equal installments over 10 years after a grace period of a full 10 years.
16. Segment information (1) Business segment information
The Company and its subsidiary are engaged in shopping mall operations and
insurance agency operations. Such segment information, however, has not
been presented, as the percentage of shopping mall operations exceeds 90% in
revenues, operating income and total assets.
(2) Geographic segment information
Since the Company and its subsidiary’s business activities are conducted in
Japan, geographic segment information is not presented.
(3) Overseas sales
The Company and its subsidiary have no sales outside Japan.
ÆON MALL Co., Ltd. Annual Report 2003 pg. 49
SHOPPING MALLS (as of February 20, 2003)
ÆON Kashiwa Shopping Center 41 Aza-Ikuyo, Oaza-Ise, Kashiwa-mura, Nishitsugaru-gunAomori Prefecture
ÆON Akita Shopping Center 1-1-1, Jizoden, Goshono, Akita City, Akita Prefecture
ÆON Futtsu Shopping Center Sect. 200, Aoki land partitioning area, Futtsu City, Chiba Prefecture
ÆON Shimoda Shopping Center 40-1, Aza-Nakanotai Shimoda-machi, Shimokita-gun, Aomori Prefecture
ÆON Suzuka Shopping Center 4-1-2, Shono-hayama, Suzuka City, Mie Prefecture
ÆON Sanko Shopping Center 1032, Oaza-Sachi, Sanko-mura, Shimoge-gun, Oita Prefecture
ÆON Kurashiki Shopping Center 1, Mizue, Kurashiki City, Okayama Prefecture
ÆON Narita Shopping Center 680, Yamanosaki, Tsuchiya, Narita City, Chiba Prefecture
ÆON Okazaki Shopping Center 38-5, Aza-Sotoyama, Tosaki-cho, Okazaki City, Aichi Prefecture
ÆON Kochi Shopping Center 1-4-8, Hatamimani-machi, Kochi City, Kochi Prefecture
ÆON Niihama Shopping Center 8-8, Maeda-cho, Niihama City, Ehime Prefecture
ÆON Higashiura Shopping Center 67-8, Sect.2, Aza-Sarushinden, Oaza-Ogawa, Higashiura-cho, Chita-gun,Aichi Prefecture
ÆON Yamato Shopping Center 1-2-1, Shimo-Tsuruma, Yamato City, Kanagawa Prefecture
ÆON Takaoka Shopping Center 383, Shimo Fukumae, Takaoka City, Toyama Prefecture
COMPANIES REPRESENTED IN INSURANCE AGENCY OPERATIONS (as of February 20, 2003)
Tokio Marine & Fire Insurance
Asahi Fire & Marine Insurance
Sompo Japan Insurance
Mitsui Sumitomo Insurance
NIPPONKOA Insurance
Nichido Fire & Marine Insurance
Aioi Insurance
Nissei Dowa General Insurance
Nisshin Fire & Marine Insurance
Kyoei Mutual Fire & Marine
Insurance
Fuji Fire & Marine Insurance
AFLAC Japan
Tokio Marine Life Insurance
Mitsui Sumitomo Kirameki Life
Insurance
NIPPONKOA Life Insurance
ALICO Japan
Yasudakasai Himawari Life
Insurance
Business Information
pg. 50 ÆON MALL Co., Ltd. Annual Report 2003
Company name ÆON Mall Co., Ltd.
Established November 1911
Capital ¥7,796 million (as of August 6, 2003)
Address 1-5-1, Nakase, Mihama-ku, Chiba City
Number of employees 295
DIRECTORS AND AUDITORS (as of May 13, 2003)
President Yoshiharu Kawato
Managing Directors Toshihiro Yokota
Takao Okazaki
Kazuhiko Hazama
Seiji Fujii
Director & Advisor Motoya Okada
Directors Masaji Miura
Hidehiro Hirabayashi
Atsushi Yoshimura
Tetsuji Nishio
Hiroshi Shikinaka
Standing Auditor Masaru Yokoi
Auditors Tokuichi Yamaguchi
Sadao Okawa
Shigeyuki Hayamizu
Corporate Information
ÆON MALL Co., Ltd. Annual Report 2003 pg. 51
SHARES OF COMMON STOCK
Authorized 80,000,000 shares
Issued: 23,754,680 shares (as of February 20, 2003)
* The common stock was split into 1.2 shares for 1 on April 10, 2003, and the Company issued
new common stock of 1,500,000 on August 6, 2003. As of August 6, 2003, total number of
shares issued is 30,005,616.
Number of shareholders: 1,878 (as of February 20, 2003)
Stock listing Tokyo Stock Exchange, First Section
Transfer agent Mizuho Trust & Banking Co., Ltd.
1-2-1, Yaesu, Chuo-ku, Tokyo, 135-8722
COMMON STOCK PRICE
CONTACT POINT
IR Section, Business Planning Dept.
TEL: +81-43-212-6733
Stock Information
8/’02 9/’02 8/’037/’0310/’02 11/’02 12/’02 1/’03 2/’03 3/’03 4/’03 5/’03 6/’03
(¥)
0
1,000
2,000
3,000
4,000
ÆON MALL
Splits
Forward-looking StatementsStatements made in this annual report with respect to ÆON Mall’s plans, strategies and other statements that are not historical fact are
forward-looking statements about the future performance of the Company. They are based on management’s assumptions and beliefs in
light of the information currently available. ÆON Mall cautions that a number of factors could cause actual results to differ materially
from those expressed herein.
1-5-1 Nakase, Mihama-ku, Chiba-shi, Chiba 261-8515, Japan
Tel: 81-(43)-212-6733 fax: 81-(43)-212-6736
Homepage: http://www.aeon-mall.net
ÆON Mall Co., Ltd.
Printed on 100% recycled paper Printed in Japan