AEON Sustainable Management Briefing

AEON Plastic Usage Policy AEON's resource conservation and recycling initiatives over theyears1990201020002020Products1974: Launch of “J-Cup” cupnoodles without attached forkShopping Bags1991: Began the "BringYour Own ShoppingBag" campaignResourceRecovery1991: In-store resourcecollection started2000: Launch of TOPVALUKyokan Sengen seriesContainer packaging made thinnerand more compact, etc.2007: First in Japan to halt free provision of disposable shoppingbags2013: Biomass blended disposable bags, "My Baskets" introduced2008: PET bottle capcollection campaign startedCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.2020: Packaging for threetypes of cleaning products, suchas sodium bicarbonate,changed to paper2019: Launch of TOPVALU My BagFrom April 2020: Free provision ofdisposable bags terminated at all stores2015: Installation of WAON-linkedrecycling stations18

AEON Plastic Usage PolicyAEON Plastic Usage Policy* FormulatedSeptember 2020AEON is working toward the sustainable use of plastics in order to contribute to the creation of adecarbonized society. Through our stores, products, and services, we will work together with allstakeholders to establish a new way of life with zero net carbon emissions and thoroughrecycling/reuse of resources.1.We will review the wasteful use of resources and the use of disposable products in ourbusinesses and aim for zero disposable plastic use.2. We will transition to using necessary plastics made from environment- and society-friendlymaterials instead of plastics made from fossil fuels.* Appropriate selection of traceable paper, biomass plastic, recycled plastic, recyclable materials, etc., taking intoaccount the environmental and social impact of the entire life cycle3.We will establish a resource recycling model for the collection, reuse, and recycling of usedplastics at our stores, and work together with customers on sustainable resource use.Targets: Aim for sustainable plastic use with zero net CO2 emissions by 2050, By 2030, we will halve the volume of disposable plastic we use. By 2030, we will use environmentally and socially friendly materials in all private brandproducts. By 2030, we will convert 100% of private brand product PET plastic bottles to bottlesmade from recycled or plant-based materials.Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.19

AEON Plastic Usage Policy Topvalu merchandise: Examples of InitiativesDecreased size Promoting Longer Rolls: Double-length rolls of kitchen towels Promoting Longer Rolls: 50% longer rolls of toilet paperRenewal from the second half of 2020 through 2021 to createlonger rolls for all productsTransition to paper packaging Sodium sesquicarbonate, citric acid, and sodiumbicarbonate for cleaningWe reduced the amount of plastic used by 45% bypartially replacing packaging materials with paper andexcluding measuring spoonsRecycled plasticBioplasticIntroduction of environmentfriendly material labels “Free From” skin cleansers (from October 2020)Bottles are made from approximately 95%mechanical PET plastic material, which is recycledfrom PET plastic beverage bottlesCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved. Pain de Mie packaging film(renewed in September 2020)20

AEON Plastic Usage Policy In-store resource collectionSince 1991, collection boxes for food trays, paper cartons, aluminum cans, etc. have beeninstalled in stores with the goal of helping to establish a circular economy. We actively promoteresource recycling, recycling collected paper packaging, aluminum cans, etc., and using some ofthese as raw materials for Topvalu merchandise.FY2019 ResultsPET bottlesAmount collectedApprox. 190.19 million bottlesAmount collected: 11,982 tonsCO2 reduction: 43,136 tonsRecycled chemical fibers, etc.Paper packagingAmount collectedApprox. 154.7 million bottlesAmount collected: 4,641 tonsCO2 reduction: 2,321 tonsTopvalu toilet paper, etc.Food traysAluminum cansAmount collectedApprox. 447.7 million traysAmount collected: 3,133 tonsCO2 reduction: 19,744 tonsRecycled trays, etc.Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.Amount collectedApprox. 347.38 million cansAmount collected: 5,558 tonsCO2 reduction: 47,800 tonsTopvalu kitchen wallsplash guards, etc.21

AEON Plastic Usage Policy Establishment of a "bottle to bottle" resource recycling model By 2030, convert 100% of PET bottles for private brand products to recycled or plant-derivedmaterialsAeon and Marubeni will collaborate on a stable and sustainable resource recycling model bycarrying out the entire process from collecting and transporting used PET bottles to makingthem into new productsOverview of the AEON & Marubeni "Bottle to Bottle Project"ProjectGoalsVerification testingfrom February 2021NationwideexpansionPercentage of bottlesrecycled in JapanIIApprox. 10% of collectedPET bottlesTotal recycling of PETbottles Efficient collection andtransport Bottle to bottletechnologyEstablishment of a scheme for cross-groupcollection and transportation* Verification testing from February in KansaiareaCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.Commercializationplanned foraround June 202122

Sustainable Planet: Promotion of resource recyclingAEON’s Food Loss and WasteReductionCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.23

Progress Toward Meeting Food Loss and Waste Reduction TargetsTarget for reduction of per-unit generation of food loss and waste35.6 kg/million yen (FY2015) 26.7 kg/million yen (FY2020)Changes in AEON Group's per-unit generation of food wasteUnits: kg/million 01002013201420152016Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.24

About the WRI 10x20x30 Initiative- 10 global retailers, each in collaboration with 20 major suppliers, will collaborate using a “Target-Measure- Act" approach, to halve food loss and waste by 2030 together with participating suppliers.- Our goal is to further spread this movement throughout the entire supply chain to achieve a 50%reduction in food loss and waste.World’s biggestfood retailorsand providers(12 companies)Ito Fresh SaladAEON’s prioritysuppliers(21 companies)Nihon DelicaFreshWRI (World Resources Institute): A U.S. non-profit organization that conducts policy research and technology development related to the globalenvironment and development.Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.25

WRI 10 20 30 Action Report2020MainInitiatives 2021Action Plan 21 companies studied WRI's calculation and reporting methods in awebinars.Exchange of opinions based on the SDGs target of halving food lossand wasteSharing of each company's goals andannouncement of best practicesInitiatives carried out through producttransactions with other companiesCollaboration on common environmental andsocial issuesInitiatives carried out throughproduct transactions Utilization of non-standard productsUse of manufacturing byproductsSupport for speculative productionDealing with slump-related inventoryHandling of end-of-sale productsEnvironmental and Social Initiatives Raising consumer awarenessInitiatives to extend expiration datesCreating a system for donationsUse as food ingredientsConversion to animal feed and fertilizerCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.26

WRI 10x20x30 Initiative ExamplesMeasures to reduce food loss through review of product transactions Securinglead timesBring forward order times and push back shipping timesOptimize production, delivery, and store operation systemsto improve efficiencyNihon Delica Fresh & MINISTOP Initiative Reduce the number of daily production and delivery cycles for bento boxes, rice balls,and sushiSecure lead times and improve efficiency to reduce the amount of food loss at plantsEstimated Food Loss Reduction duced food loss Improved productionefficiencyReduced logisticscostsCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.Improved storeoperation efficiency27

Heartful Community: Urban development and bond development,support and nurturing of the next generationTogether with Peoplefrom Local CommunitiesCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.28

10 Years After the Great East Japan EarthquakeAction Report for "Project AEON Joining Hands" Tohoku Restoration Support2012201320142015First PeriodInitial Construction PeriodSupport for the rapidrecovery and reconstruction ofaffected areas20162017Second PeriodIndependent ExpansionSupport based onexchange and expansion20182019212020202021Third PeriodOrganization/Enhancement PeriodTo the nextstageSustainable support based on the themeof local issue focus and implementationTohoku reconstruction hometown forestation tree planting activities (target of 300,000 trees)Goalachieved316,419 treesVolunteer activities carried out by Group companies (target of 300,000 people)Goalachieved377,150 peopleAEON Future Co-creation ProgramRapid reopening on store roofs"Yellow Receipt campaign" tosupport TohokuOpened July 2019: AEONNamie StoreCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.Support forfurtherresolution oflocal issuesthroughongoingcommunityengagementNigiwai Tohoku Fair29

10 Years After the Great East Japan EarthquakeMain examples of AEON Future Co-creation Program initiatives Otsuchi-cho, Iwate: Kanesawa watercressThis is watercress grown in clear streamwater in reclaimed fallow rice fields. Iwate: Kamaishi Tono WineKamaishi wine was born in 2014from seedlings planted by Aeonvolunteers. Tono City, Iwate: Yondori DoburokuThis authentic doburoku is made withpesticide-free rice from the Yondori district,a village on the outskirts of Tono City. Koya district, Marumori-machi, Miyagi: Minamisoma City, Fukushima: "AgriculturalProducts from Minamisoma City"Korokaki persimmons Minamisanriku-cho, MiyagiPrefecture: YES workshop craftsA wide range of products such as the Fukkooctopus (Octopus-kun), woodwork, andmayuzaiku products can be developed.We deliver "Korokaki" persimmons, which arepopular all over Japan, along with otheragricultural products from Marumori, throughexchanges.We would like people to buy rice, vegetables,and processed products from Minamisoma asthey did before the earthquake.Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.30

Contributing to Local Communities through Our Business Launch of the AEON Children's Cafeteria Support GroupIn order to support the lives of children andhouseholds raising children who have been forced tobear a particularly heavy burden due to the COVID19 pandemic, we have teamed up with the NPO,National Children's Cafeteria Support Center Musubie,to provide ongoing support for feeding children atchildren's cafeterias around Japan.Main Initiatives We will support the project by providing venues at AEON stores nationwide and throughthe AEON COVID-19 Protocol for Infectious Disease Control (venues for seasonal events,educational activities, and other initiatives) Fund-raising activities involving all AEON operating companies (December) Funded by the AEON One Percent Club, a Public Interest Incorporated Foundation Support provided through a cooperative initiative by Musubie and local governmentsCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.31

Contributing to Local Communities through Our BusinessInitiatives with Setagaya WardEmergency Santa Action:Last December Aeon collaborated with Ai Haruna,founder and operator of a children's cafeteria inSetagaya; Setagaya Ward; the Setagaya WardCouncil of Social Welfare; and Musubie.Information was sent out from Setagaya Ward and10,000 meals were distributed through children'scafeterias.Activities at the AEON Sagamihara StoreIn collaboration with children’s cafeterias near our stores, which were introduced to us byMusubie, we carried out awareness-raising activities for the children's cafeterias at our storesduring the fundraising period. Many of our customers made donations.Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.32

Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.

AEON COVID-19 Protocol forInfectious Disease ControlCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.34

AEON COVID-19 Protocol for Infectious Disease ControlWe established the AEON COVID-19 Protocol for Infectious Disease Control in June30, 2020 to guide our collaborative work with customers to help establish safe andsecure lifestyles for local community membersObjectives As the COVID-19 epidemic continues, AEON will workwith local customers to implement this protocol on anongoing basis, rather than as a temporary measure.Making infection prevention an integral part of daily life,we will protect the health and lifestyles of our customersand employees, and together with our customers, protectthe safety and security of local communities. AEON will implement infectious disease control measures byAims of the Protocolusing scientifically-based advice and the latest knowledge fromexperts. AEON will implement infectious disease control measures byworking together as one with all of its employees. AEON will stand together with customers in building aninfectious disease control structure. AEON will implement measures to reduce points of contactwith customers by utilizing digital means and will makeinvestments, such as changing to facilities that ensure socialdistancing.Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.35

AEON COVID-19 Protocol for Infectious Disease ControlAEON will work with customers to adapt to the "new normal" byprioritizing the safety of customers and employees.Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.36

AEON COVID-19 Protocol for Infectious Disease Control RevisionsNovember 11, 2020: Revisions made to the AEON COVID-19Protocol for Infectious Disease ControlRevised ItemsPurpose ofRevisionsRevised to add content that reinforces measures aimed at bolstering theprevention of infection via airborne droplets in enclosed spaces, which isthought to be a primary transmission pathway for COVID-19Droplet Infection Prevention Ensuring social distancing① Clearly indicate the distances between seats andthe number of people to be admitted into foodcourts, restaurant zones, beauty salons, gyms, etc.② Acrylic panels will be installed in places wheresocial distance (1 to 2m) cannot be maintained.Eliminate the spread ofinfection between employees Take thorough measures to prevent infection in andaround facilities Coronavirus Control Measures HandbookPromote awareness of the importance of wearingmasks by distributing information and posting itonline.Measures to prevent secondaryinfections after an outbreak Clearly specify to both employees and customerswhat they should do in the event of infection.Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.37

Droplet Infection Countermeasures (1)Droplet infection prevention Facility ventilation and air purification- Aiming to create safe and secure shopping center environments In food courts located nearoutside walls, ventilation fanswill be added to further improveventilation.(AEON Mall Makuhari New City) Installation of high-performanceair purifiers to clean the air.(AEON Mall Kochi) Curbing COVID-19 infectivityAround 1,000 newphotocatalytic sterilizers havebeen installed in 72 shoppingcenters nationwide.(AEON Town Co., Ltd.)Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.38

Droplet Infection Countermeasures (2)Droplet infection prevention Facility ventilation and air purification- Measures in the amusement business Installed multiple Kaltec Co., Ltd.’sphotocatalytic sterilizer units atregular intervals in areas wherecustomers spend extended periods forthorough prevention of viralinfections.(Molly Fantasy Fujimino) Partitions between seats(Aeon Cinema Ichikawa Myoden) Large-scale anti-virus air conditioningsystemTrane Technologies’ triple air shields havebeen installed to help purify air in closedspaces.(Aeon Cinema Ichikawa Myoden, MakuhariNew City)Copyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.39

Initiatives to Protect Employees from Infection (1)Eliminating the spread of infection between employees Distributed the Coronavirus Control Measures Handbook to allemployees and business partners.DistributionAll Group employees &business partners - 1.5million copies in totalSupportedlanguagesJapanese, English, ChineseVietnamese, NepaleseRevisionsFirst edition in AugustRevised in NovemberCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.40

Initiatives to Protect Employees from Infection (2)Verification tests on backroom infection control measuresat AEON Style Makuhari ShintoshinDispensers installed ineach work areaRoom personnel capacitiesdisplayedAntiviral/antibacterialcoatings applied tosurfacesEncouragement to receive vaccination against influenzaEmployees are being encouraged to get vaccinatedagainst influenza, about which there is concernabout outbreaks during the COVID-19 pandemic.June: Announcements encouraging vaccinationJuly: Announcements concerning full subsidizationAugust: Coordination of group vaccinationsEmployees provided withthoroughgoing COVID-19-relatedinformationCare provided to those returning to workFollow-up with people recuperating athomeConsideration for workers who arepregnantCopyright (C) 2021 ÆON Co., Ltd. All Rights Reserved.41

Initiatives to Protect EmploymentSecondments to Services and Specialty Store business under the declaredstate of emergencyShort-term secondment of employees who need to secure employmentServices and Specialty StorebusinessA total of 1,160 employeesfrom 14 companies(one person counted for eachweek)April 13 to May31, 2020Supermarkets,drugstores, etc.of 17 companiesAcceptance of seconded employees by food service businessesAcceptance based on requests from the food service industry, etc. through UAZensen union7 companies in the foodservices industryApprox. 200

Green Eye AEON COVID-19 . Palm oil. 100% RSPO certification of raw materials. 100% 54% 64% 38% 82% 80% 33% 76% 41% 99%. 12. AEON Sustainable Procurement Policy and 2020 Procurement Goals. . producers around the world, use third-party certification to ensure secure evidence Because there are multiple labels,