OVERVIEW MALAYSIA & OVERVIEW OF SECTOR COMPANY

In 2020, the Malaysian economic sector has been in decline due to the lockdown in Malaysia as
pandemic covid-19 cases increase. This is because, many companies and shops had to close to
prevent the outbreak of covid disease infection from spreading around the world. Many workers
had to be laid off because companies could not afford to pay their salaries as the economic sector
declined. This caused the unemployment rate to rise due to the covid-19 pandemic. However,
some Malaysians are still looking for jobs through online social media. Through the world of
fingertips as well, can expand the affected employment factors. Unemployment factors also
occur because some Malaysians do not know to expand their business on the internet.

In overview Malaysia of the economic sector in AEON CO. (M) BHD in 2020 expects its retail
business to receive minimal impact in an environment of slowdown in the retail market
following the slow-growing economy and the spread of COVID-19. As such, the supply chain
will continue to be affected by delivery delays from suppliers and shippers facing rising logistics
and delivery costs, rising raw material prices and shortages of supply. The most companies,
overall business activity including domestic sales and exports for the next six months is expected
to be low as they continue to recover business. The value of the currency also declined due to
affected economic factors.

In overview sector company of the AEON company that took place in 2020 which caused the
economic sector to decline. In the same year, there were initially store closures to reduce the
covid-19 outbreak. AEON Retail Malaysia's Managing Director and Chief Executive Officer,
Shafie Shamsuddin, said the group's outlets were not visited by tourists, so it would not be
severely affected by the outbreak. "We also saw an increase in retail sales in early February at
southern region store outlets, especially from Singapore customers". Despite the continued
effects of the COVID-19 pandemic on the global and domestic economy, AEON maintains a
positive outlook on growth prospects for the nation’s economy, the domestic retail sector and
AEON. The introduction of vaccines, the various government stimulus measures and other
facilitating factors have restored a measure of confidence to both consumer and investor
sentiments.

In addition to investing in making sure customers feel safe while shopping, it is looking for
growth opportunities such as home delivery businesses, given changes in consumer buying
behavior. In 2020, the closure of stores not related to food sources was also affected that year. As
such, AEON is making a difference by selling their wares through online “home delivery”. At
the same time, most buyers make purchases wisely through online due to the occurrence of
lockdown. The Government’s various initiatives to stimulate the economy should deliver a
strong multiplier effect. In addition, further efforts to revive retail expenditure is required. This
includes supporting job creation, which will restore disposable incomes that will ultimately
translate into higher consumer consumption.

OVERVIEW OF BUSINESS AND OPERATIONS

Incorporated on 15 September 1984, AEON CO. (M) BHD. (“AEON” or the “Company”) is a
leading retailer in Malaysia and is regarded as one of the country’s top Departmental Store for
ease of Malaysian contextualisation, supermarkets and mall retail brands.

AEON is one of Malaysia’s largest mall operators with a total net lettable area (“NLA”) of 1.6
million square metres.

Since its inception, AEON has progressively grown to become a household retail name with
affordably priced, quality retail products and services as well as food and beverage.

AEON is part of AEON Group of Companies and it is 51.68% owned by Japan incorporated
holding company, AEON Co., Ltd. The AEON Group of Companies is an integrated Japanese
retailer with over 300 consolidated subsidiaries and affiliated companies. It has an active and
growing presence across Japan, South East Asia and China.
COVID-19 PREVENTION MEASURES

The Management has been steadfast in developing and implementing government mandated
SOPs to ensure a safe operating environment, across all AEON assets. The Company recognises
its employees notably for having played a pivotal part through their strict discipline and
adherence to SOP, which have enabled a high level of compliance.

Among measures implemented included physical distancing, employees rotation on a Team A

and Team B basis, work-fromhome arrangements for all employees with the exception of retail
frontliners, frequent screening and testing of employees and regular disinfection and sanitisation
exercises.

Face masks were provided to all employees as well as consumers across our malls, stores and
outlets. Sanitisers were also made readily available.

While COVID-19 related costs did contribute to OPEX, Management remains steadfast in
ensuring a safe retail and work environment for consumers and employees as well as other
stakeholders. AEON will continue to adopt a safety-first approach well into years 2021 to
provide employees and patrons with the required assurance so they may feel comfortable and
confident in shopping with AEON.

Company’s Business Continuity Plan (“BCP”) and the Risk Register has been updated with the
possibility of pandemics as a risk factor going forward.