Beijing Report FY2016 AEON Scholarship Certificate Award Ceremony in China (November 30th - December 6th, 2016) AEON 1% Club Foundation 1 December 22nd, 2016 To whom it may concern AEON 1% Club Foundation Secretary General Yohsei Honda FY2016 AEON Scholarship Certificate Award Ceremony in China (Report) Thank you for your support and understanding for the activities of the AEON 1% Club Foundation. The following is our report on the above topic. 1. Date of implementation, university, number of scholarship students, and attendees Scholar Other main attendees Implementati ship Attendees on Universit student from our Government, Date y name s foundation University side consulate general, and No. of sponsors side people AEON China headquarters GMS SM Business Adviser to the Manager Takumi Secretary president of Sugawara November Peking General Peking Beijing AEON director 30th University 15 Yohsei University, general and board Honda, education fund member Yasuyuki others secretary Furusawa 邓娅 AEON Credit Guarantee (China) board member 汪凌云 AEON China headquarters GMS SM Business Tsinghua Manager Takumi University Party Sugawara Secretary secretary for AEON Credit Guarantee Tsinghua General foreign literature (China) December 1st University 15 Yohsei and assistant Director general and Honda, director of the board member Shinya others Literary Institute Tanaka 張文霞 Beijing AEON Management Headquarters manager 左小文 Beijing International Studies University assistant director 朱佩芬 Beijing AEON director Beijing Secretary general and board Internation General Beijing member Yasuyuki December 1st al Studies 70 Yohsei International Furusawa University Honda, Studies AEON Credit Guarantee others University (China) Co., Ltd. School of 汪凌云 Japanese board member Language, Literature and Culture director 楊玲 2 AEON Mall China Director general and Nankai University board member 健 Secretary vice-president 朱 Nakane General 光磊 AEON Microfinance December Nankai 40 Yohsei Nankai University (Tianjin) director general 2nd University Honda, Party Committee 東篤史 others Student Section Beijing AEON Leader 白雲龍 Management Headquarters manager 左小文 Japanese consulate Ocean general in Qingdao University 30 Shigeru Toyama of China Ocean University Qingdao municipal of China government, head of the Party Committee foreign affairs office Secretary managing 劉 志勇 December 4th General vice-secretary 張 Qingdao AEON director (Joint) Yohsei 静 general Honda, 伊正 others Nakagawa Qingdao 30 Qingdao Qingdao Ministop University University director general Vice-president 汪 Akihiro Fujimoto 黎明 Qingdao Max Valu director general Akira Utahara Guanding AEON Chairman director general and Hiroshi Sun Yat-sen board member Toyotaro Yokoo University Koibuchi Sun Deputy student 资助 Guangdong AEON December 4th Yat-sen 30 Secretary Management Management University General center director 周 Headquarters manager Kaichiro 昀 Takemori Tomari Hayashi, AEON Microfinance and others (Shenzhen) director general Koji Teramoto AEON South China Chairman director general and Hiroshi board member Hiroyuki Yokoo Shenzhen Ihara Shenzhen Deputy University AEON South China December 6th University 30 Secretary vice-president board member and General 徐晨 deputy-director general Kaichiro 葉 青 AEON Hayashi, Microfinance and others (Shenzhen) director general Koji Teramoto 2. Characteristics of this year’s event (1) Opportunities for exchange with the sponsors were increased through measures such as providing Q&A time and a Top Value product tasting mixer. 3 ↑ Top Value product exhibition ↑ Top Value product development process (2) An introductory video was screened to deepen viewers’ understanding of the AEON 1% Club Foundation. (3) The Japanese consulate general in Qingdao and the Qingdao municipal government representative attended the joint Ocean University of China and Qingdao University AEON Scholarship presentation ceremony for the second consecutive year. (4) The level of recognition of the AEON 1% Club was raised by unifying the certificates for eight universities. ↑ Cover of the unified certificate ↑ Unified logo page and certificate (5) Higher level of mass media exposure Guangzhou TV (TV news) Date of announcement: December 6th, 2016 Title: Sun Yat-sen University AEON Scholarship Certificate Award Ceremony ↑ Chairman Yokoo being interviewed by a TV station The Information Times (online) 4 Date of announcement: December 6th, 2016 Title: 30 outstanding students of Sun Yat-sen University were certified for AEON scholarships http://epaper.xxsb.com/showNews/2016-12-08/350626.html 大粤网 (online) Date of announcement: December 9th, 2016 Title: FY2016 Sun Yat-sen University AEON Scholarship Certificate Award Ceremony http://xw.qq.com/gd/20161209032894/GDC2016120903289400 Sun Yat-sen University website (online) Date of announcement: December 7, 2016 Title: FY2016 Sun Yat-sen University AEON Scholarship Certificate Award Ceremony http://news2.sysu.edu.cn/news01/148565.htm Qingdao University official account (online) Date of announcement: December 9th, 2016 Title: Qingdao University AEON Scholarship Certificate Award Ceremony http://mp.weixin.qq.com/s/dpS_5pGavAsgtpbWWPd2vw 3. Scenes from the award ceremony Peking University (November 30th), PM 5 Group photo of the award ceremony at Peking “My dream” speech by a representative of the University scholarship students Smiling scholarship students Tsinghua University (December 1st), AM Screening of the AEON Group Introduction Video Manager Sugawara answers questions from students 6 Director general Tanaka of AEON Credit Scholarship students making the most of the Q&A Guarantee (China) and scholarship students time Group photo of the award ceremony at Tsinghua University Beijing International Studies University (December 1st) PM Group photo of the award ceremony at Beijing International Studies University 7 A Beijing International Studies University Students receiving their certificates scholarship student asking a question Nankai University (December 2nd) PM The presentation ceremony at Nankai University Students receiving their certificates “My dream” speech by certified scholarship students 8 Group photo of the award ceremony at Nankai University Joint event for the Ocean University of China and Qingdao University (December 4th) AM Group photo of the presentation ceremony Group photo of the presentation ceremony (Ocean University of China) (Qingdao University) Students receiving their certificates AEON 1% Club Foundation introduction video Consul General Toyama gives an Director 劉 talks about his experience as an encouraging speech to scholarship students exchange student 9 “My dream” speech by a representative of the scholarship students Sun Yat-sen University (December 4th) PM A Sun Yat-sen University scholarship student Group photo of the presentation ceremony at Sun asking a question Yat-sen University Students receiving their certificates 10 Director general Koibuchi telling scholarship Scholarship students enthusiastically mingling students about the development process for Top with Chairman Yokoo Valu products. Shenzhen University (December 6th) PM Group photo of the presentation ceremony at Students receiving their certificates 11 Shenzhen University ↑ Top Value product display booth 4. Q&A Session (excerpt) Q: e-commerce is growing at extreme speed due to the spread of the Internet and PCs. As a retail company with bricks-and-mortar stores, what is the AEON Group’s perspective in addressing this situation? Also, what measures are you using to keep your place in the market? A: Net business is developing very rapidly in China, and the proportion of retail value in online sales is about 20% higher than in the USA or Europe. We have to think about why Net business is growing so extraordinarily in China. The reasons, in my view, are that, firstly, China is extraordinarily expansive, and secondly, that physical stores still have incomplete product lineups and services, and thirdly, that compared to more developed nations, home delivery fees are cheaper relative to products. In that context, Chinese retailers are engaging in Net business in many forms, but as far as we know, online business efforts by retailers are not going well. Our perception is that retailing by businesses that are completely vertically integrated, from sales through logistics, are certainly not producing profits. I think the ones that are succeeding in China are platform-type businesses, centered on the T-Mall that everyone is using. There are now two things that AEON is heavily involved in within that situation. Chinese consumers support Japanese products, so one thing is that as a Japanese-affiliated company, we collaborate with AEON in Japan to send products from Japan that are popular in China. The other is that we use of physical stores as Net supermarkets, so that when customers order products online, their orders are picked up from stores and delivered within two hours, to be picked up there. We do that at 25 stores now. Of course, we don’t imagine that this project will give us victory in China’s current Net business. Our estimate is that online sale of goods will grow much further in future and naturally has the potential to take our market. As Chinese people’s lifestyles get more affluent, their rates of consumption of goods will go on rising, and we expect the market for services to grow enormously as well. We think that a next chance or a next stage will come. For example, I think experiential shopping centers, where people can experience products, will be one 12 kind of service.