Table of Contents

CORPORATE PROFILE........................................................................................................................ 2 CORPORATE PHILOSOPHY ............................................................................................................... 3 BOARD OF DIRECTOR ....................................................................................................................... 4 HISTORY ............................................................................................................................................... 5 HUMAN RESOURCE DEVELOPMENT ......................................................................................... 6 MANAGEMENT ................................................................................................................................ 7 Management Training ......................................................................................................................... 9 LIFE IN JUSCO................................................................................................................................ 11 THE AEON CODE OF CONDUCT COMMITMENT .................................................................... 15 THEIR PROMISE TO THEIR CUSTOMERS............................................................................. 17 REFERENCES ............................................................................................................................. 19

CORPORATE PROFILE

ON CO. (M) BHD. (formerly known as Jaya Jusco Stores Bhd.) is a leading retailer in Malaysia with a total revenue of RM3.73 billion in the financial year ended 31st December 2009. The Company was incorporated on 15 September 1984. ON CO. (M) BHD. was set up in response to the Malaysian Governments invitation to ON Japan to help modernise the retailing industry in Malaysia. The JUSCO name today is well established among Malaysians as well as foreigners, especially due to its association with the international ON group of companies. ON has established itself as a leading chain of general merchandise stores. ONs constant interior redecoration of stores, to project an image designed to satisfy the ever changing needs and desires of consumers, is clear evidence of this. The Companys performance has been further enhanced by the managements acute understanding of target market needs and the provision of a correct product-mix. ONs stores are mostly situated in suburban residential areas, catering to the vast middle income group. The ON group of companies consists of ON Co. Ltd., and more than 150 consolidated subsidiaries and affiliated companies. In addition to its core general merchandise stores (GMS) plus its supermarket and convenience store operations, ON is also active in specialty store operations, shopping center development, operations and services. ON group of companies is an integrated Japanese retailer and is active not only in Japan but also in Southeast Asia, China and North America. At all times, in every market, ON's activities are guided by the unchanging 'Customer First' philosophy. Its aim is to surpass expectations by combining excellent products with unique personal services that enhance the shopping experience to make the customers smile every time they shop.

CORPORATE PHILOSOPHY

THE PRINCIPLE Regardless of how times may have changed, is to serve the Customer First . They are always mindful of the three keywords which make up the essence and character of the retail industry and must be considered in any development: peace , people and community . Theirs is a person-to-person business and their existence is deeply intertwined with the people of the regions and societies in which we serve. These precepts remain the same wherever they do business, where they act as a contributing member of the local community. THE STRATEGY Is to establish a solid competitive position and achieve continuous growth. Two key components underlying this strategy are: 1) Accelerating Shopping Centre Development. They are channelling their resources towards developing attractive, integrated commercial facilities which their customers can fully enjoy, such as regional shopping centre and neighbourhood shopping centre. This segment also involves leasing shopping space and facilities to tenants.

2) Aggressive Pursuit of GMS Stores. Their General Merchandise Stores (GMS), which combine supermarkets and departmental stores under one roof, operate as full-line retailers. Products offered range from food and other daily necessities, apparel and household goods (including bedding and bathroom products) to specialised products such as home appliances, sporting goods and cosmetics. THE GOAL Is to operate as an international-scale retailing group, recognised for excellence not only in Japan, but also in other nations. The international recognition we are working to achieve is not one which can be measured merely in quantifiable terms of size, growth and profitability. We hope to be competitive at the global level in intangible aspects such as customer satisfaction and corporate citizenship. We are dedicated to the idea of quality management to further enhance our capabilities.
3

BOARD OF DIRECTOR

Non-Independent Non-Executive Chairman Dato Abdullah bin Mohd Yusof Non-Independent Non-Executive Director Mr. Jerome Thomas Black Managing Director Mr. Nagahisa Oyama Non-Independent Non-Executive Director Datuk Ramli Bin Ibrahim Independent Non-Executive Director Brig. Jen. (B) Dato Mohd Idris bin Saman Independent Non-Executive Director Datuk Zawawi bin Mahmuddin Independent Non-Executive Director Dato Chew Kong Seng Non-Independent Non-Executive Director Mr. Naoki Hayashi Non-Independent Non-Executive Director Mr. Kenichi Hirao

HISTORY

How it all started... JAYA JUSCO is set up in Malaysia In 1984, Jaya Jusco Stores Sdn. Bhd. was established in Malaysia, in response to the Malaysian Prime Minister Dato' Seri Dr. Mahathir's request to help modernise the retail industry in Malaysia using the world's most advanced management expertise. Dr. Mahathir believed that the modernisation of the retail industry was crucial for the country's economic growth. Prior to this, in 1983 Dr. Mahathir visited Tokyo and met the then JUSCO Co., Ltd. President, Mr. Takuya Okada to discuss the proposition of bringing the JUSCO name to Malaysia. The talks ended on a positive note and Dr. Mahathir invited JUSCO to set up store in Malaysia. All this was part of Dr. Mahathir's Look East policy for Malaysia. Following this, a joint venture company was established in September 1984. There were three parties involved: JUSCO Co., Ltd., Japan, Peremba, a leading government owned Property Company and Cold Storage, a premier supermarket chain store. JAYA JUSCO's aim was to grow with the people of Malaysia through the transfer of expertise from Japan to Malaysia and human resource development, two factors which would contribute greatly to the progress of Malaysia.

HUMAN RESOURCE DEVELOPMENT

AEON PEOPLE ARE IRREPLACEABLE ASSETS Realising the importance of human resource development in sustaining the business growth, AEON put high focus on the training and development of its people. During the year under review, AEON had developed comprehensive training programmes for AEON people to close the gap on skill and competency in all levels and disciplines. The types of training programme rolled out in the year 2009 included the leadership programme, the skill enhancement programme, the AEON in-house retail programme and development programme for non-executives. A firm believer in lifelong learning, AEON continued to encourage its people to pursue further education for their personal and career growth. Under the OUM programme in which AEON collaborated with the Open University Malaysia, AEON subsidised 80% of the education fees of its people. For year 2009, a total of 95 employees were enrolled under this programme in various academic fields. AEON also continued with the New Leader Development Programme, Japan Trainee Programme and Management/Retail Trainee (MT/RT) Programme that involved identifying and grooming future leaders for AEON. A total of 296 AEON people have gone through these programmes. In addition, AEON had conducted various other learning programmes such as the Emergency Response Team (ERT) Programme and Fire Drill Programme, with assistance from the Fire and Rescue Services Department (BOMBA) to educate and equip AEON people with the right knowledge and skills.

MANAGEMENT

Improving the Quality of Their Staff with OUM On 4 August 2006, AEON CO. (M) BHD. signed a Memorandum of Understanding with OUM (Open University Malaysia) for the Executive Diploma(in Trade Management, Human Resource Management and Retailing) Programme. AEON was represented by the Managing Director, Mr Nagahisa Oyama and OUM was represented by Prof. Tan Sri Dato Anuwar Ali. A welcome ceremony was also held for the first batch of 69 students. On 18 December 2006, 31 AEON staff members were awarded their Diploma in Management (Retailing) at OUMs 3rd Convocation ceremony, held at the PWTCs Dewan Merdeka. The 24 apprentice and 7 international staff members received their Diplomas from the Pro Chancellor, Tan Sri Dato Azman Hashim. Japan Trainee Programme The 5th batch of trainees who successfully completed the Japan Trainee Programme returned to Malaysia on 17 January 2007. They are now all holding positions as leaders in their respective stores nationwide. The Japan Trainee Programme is designed to help selected leaders prepare for the ever-changing retail environment, by exposing them to overseas working conditions. One of the vital ways to enhance their knowledge and skills in retailing is by giving them some experience in ON Japan. This programme also teaches them to be independent, in preparation for their future roles as leaders in the Company. The JUSCO Business School The JUSCO Business School is an intensive course for the benefit of merchandisers, store managers and deputy store managers organised by AEON. To celebrate the successful completion of the course, a special closing ceremony was held on 22 September 2006.

New Leader Development Programme To train and develop new leaders from within the Company, AEON CO. (M) BHD. has created a New Leader Development Programme (NLDP). The graduation ceremony for the 2nd batch of participants was held on 12 December 2006, attended by AEON CO. (M) BHD. Executive Director, Mr Masato Yokoyama. Participants were asked to present a project that applied all the skills and knowledge they gained during the one-year course. The programme has already showed some success as 30 out of the 50 participants have already been promoted to higher positions in the Company. Team Building for the Future AEON CO. (M) BHD. organised a number of team-building activities throughout the year to develop attitudes, motivation and unity within the Company. Some of the programmes organised were the Teaming Up Ceremony for JUSCO Taman Equine staff on 24 May 2006, and a Teaming Up Camp for DHATI (formerly known as J-One) Pearl Point staff from 1 3 June 2006, followed by a Teaming Up Ceremony on 13 June 2006. Team-building Programmes were also held for Blue Wave supervisors and assistant supervisors at Kem Bina Semangat Yayasan Selangor from 24 26 July 2006 and for Blue Wave team members at Frasers Hill from 1 3 August 2006.

Management Training

During the first three months, trainees will undergo an intensive introduction programme covering the principles of operation and management. This includes: 1) Management workshops in leadership, teamwork and managing change 2) Familiarization visits to all areas of our operation 3) Experience sharing with managers and staff 4) Briefing from senior management on business strategy 5) Group projects To gain expose in retail operations, trainees will be posted to various departments within JUSCO. This is an excellent opportunity for trainees to broaden their understanding of our business. Trainees will be exposed to: 1) Customer care cashier training 2) Off job training 3) Team building 4) Japan Training Programme for selected Management Trainee Career Path Be a Key Player In the long run, trainees will enjoy excellent career prospects and go as far as their abilities will take them. A typical career path might be:

Career Development Chart Management Trainee Programme can build trainees career in their company.

10

Career Opportunities

The Requirements Are trainees qualified for the Management Trainee Programme? 1) Trainee must be a Malaysian citizen 2) Trainee should be between 21-28 years of age 3) Trainee must possess an Advanced Diploma or University Degree in any discipline 4) Trainee must be able to speak fluent English and Malay languages 5) Trainee must have excellent interpersonal and analytical skills 6) Trainee should be ready for challenges and be geographically mobile 7) Trainee are comfortable working in shifts

LIFE IN JUSCO

Bring out the Best of The Best the starting point of their philosophy is the customer. Their eternal mission is to benefit their customers and their operations are thus customer focused to the highest degree. Their first basic principle is dedication to peace where we aim in every possible way to health, safety and peace of mind in our daily living.

11

1) They aim to contribute in every possible way to health, safety and peace of mind in daily living. 2) As a good corporate citizen, they undertake many philanthropic activities. Their Second basic principle is dedication to people where we believe in the value of each individual's free spirit and vitality and our employee accept one another as equals committed to shared ideals. 1) They believe in the value of each individuals free spirit and vitality. 2) Their employees accept one another as equals committed to shared ideals. Their third principle is dedicated to community where we encourage our relationship with local communities and aim to become the local community's most trusted partner in the effort to create amenities for better living. 1) They encourage their relationships with local communities to evolve into on-going partnerships so that, together, they can create a future of limitless promise. 2) They aim to become the local community's most trusted partner in the effort to create amenities for better living.

CUSTOMER CARE MANAGER Responsibilities 1) To build and maintains relationship with all at management level in the entire department to facilitate the efficient escalation and resolution of Customer. 2) To compile Customer Complaint letters. 3) To monitor and attend to all Customer Voice. 4) To monitor overall in J-Card and Service Counter. 5) To communicate management objectives to the team and to ensure that the efforts of the team are focused on achieving these objectives. 6) To ensure that all correspondence (faxes/e-mails/letters) are handled properly & on a timely basis and according to set standards in order to maintain quality customer services.
12

7) To support all process management in planning, execution, auditing of Cashier or related to Customer Care Project. 8) To support all process management in planning, execution, auditing of ROC. Requirements: 1) Diploma or Degree in Hotel Management / Public Relation / Administration and Business Administration. 2) At least 3 years experience in Customer Care / Hospitality industries or public relation. 3) Possess leadership qualities with ability to motivate and sustain high level of team work among team members. 4) Strong analytical skill with excellent communication, negotiation and interpersonal skills. 5) Able to work under pressure and multi-task in a fast paced and intellectually demanding environment. 6) Pleasant personality & well groomed. 7) Loves to meet people. 8) Able to work in shift, weekend & public holiday. 9) Applicants should be Malaysian citizens or hold relevant residence status.

LEASING OFFICER Responsibilities: 1) Identify and secure potential tenants for retail lots in AEON Shopping Centre. 2) Negotiate rental rates and tenancy terms with potential tenants. 3) Manage existing tenants for renewal of tenancies and upgrading retail lots. Requirements: 1) Candidate must possess at least a Bachelor's Degree, Post Graduate Diploma or Professional Degree in Marketing, Commerce, Advertising/Media or equivalent. 2) At least 1 year(s) of working experience in the related field is required for 3) Preferably Junior Executives specializing in Property/Real Estate or equivalent tothis position.
13

4) Job role in Property Leasing or Real Estate Negotiator. 5) Able to work on alternate Saturday base. 6) Fresh graduate is also encouraged to apply for the position. BUSINESS DEVELOPMENT OFFICER Responsibilities 1) To conduct Area & Market Research such as existing and future Residential Developments, Commercial Developments and also road network, transport and communication links. 2) To conduct Competitor Research on the existing and future developments by compile / update information on competitors' new and existing stores. 3) To conduct catchments study (drive test and population count). 4) File arrangement for site according to the area, plot into the master map. 5) Responsible for New Site Registration into the system. 6) To ensure payment made before date line for respective store. 7) To do company search through internet upon Manager's requisition. 8) To do title search for targeted land. 9) Translate letter from Malay to English upon Manager's requisition.

Requirements: 1) Minimum Degree in GIS/Quantity Survey/Property Development/Town Planning or any related field 2) Minimum 1 year working experience in property/ real estate, site acquisition research or valuation background. 3) Able to multitask and work under pressure in a fast-paced environment. 4) Computer literate and possessed GIS knowledge i.e. map Info would be an added advantage. 5) Good analytical and communication skills. 6) Self-motivated with a high level of commitment. 7) Willing to travel.

14

FOODLINE MANAGER Responsibilities 1) Identifying strategy plans & sales promotion for Food line 2) Monitoring and analysing sales performance and merchandise mix 3) Providing excellence customer service on the selling area as well as able to gauge customers' needs 4) Selling area & backroom management 5) Ensuring hygiene & cleanliness at all the time 6) Manpower productivity management, staff training & implementation 7) Performing back-end office functions such as preparing monthly review and sales promotion result Requirements: 1) Candidate must possess at least a Diploma, Advanced/Higher/Graduate Diploma, Bachelor's Degree, Post Graduate Diploma, Professional Degree, any field. 2) At least 5 year(s) of working experience in the related field is required for this position; preferably in Food line retail industry 3) Preferably Managers / Division Leaders specializing in Sales - Retail/General or equivalent. 4) Full-time position available.

THE AEON CODE OF CONDUCT COMMITMENT

1) AEON people are always grateful to the many other individuals who provide support and help, never forgetting to act with humility. 2) AEON people value the trust of others more than anything else, always acting with integrity and sincerity in all situations. 3) AEON people actively seek out ways to exceed customer expectations. 4) AEON people continually challenge themselves to find new ways to accomplish the AEON ideals. 5) AEON people support local community growth, acting as good corporate citizens in serving society

15

ABOUT THE ESTABLISHMENT OFTHE AEON CODE OF CONDUCT On August 21, 2001, they established the Corporate Commitment to guide and direct the future course of the AEON Group. They have changed the corporate group name from AEON Group to AEON, and each and every member of theAEON family of companies has taken on the challenge of promoting innovation under the guiding principle that everything they do, they do for their customers. The future will bring challenges to AEONs value proposition. AEON must become a trusted brand to distinguish itself from the competition and earn customer loyalty. And to maintain that loyalty, they must work daily to evolve the AEON of the future, a company that constantly focuses on creating new value for customers. So what is the AEON of the future? For example, if their customers are affected by a law or regulation they feel is unreasonable, they at AEON will strive to make things better for them, making their position clear and staying true to their core values. The centre of their philosophy is the concept that everything they do, they do for their customers. This is an immutable principle that will never change, even as theythemselves are in constant renewal. Never satisfied with the status quo, always taking another step forward to improve their customers lifestylesthis is the AEON tradition. This is the AEON mission. And this is the reason AEON will always be there to serve the needs of future customers. They have established the AEON Code of Conduct as a means to provide more clarity for the AEON of the future. The Code of Conduct helps us interpret AEONs basic principles to know what actions they need to take for the benefit of their customers of the era ahead. They pledge that beginning today, they will do everything in their power to promote and embody the AEON Code of Conduct. It is their hope that all AEON people will join them in sharing this sense of purpose, developing deep bonds of trust between them all. April 2003 Toshiji Tokiwa, Chairman Motoya Okada, President AEON Co., Ltd.

16

THEIR PROMISE TO THEIR CUSTOMERS

AEON endeavours to provide its customers with assurance and trust in their daily lives, in keeping with the view that "everything they do, they do for their customers." AEON's never-ending mission is to make a positive contribution to customer lifestyles. At AEON, their first priority is to ensure customer safety. Their customers enjoy a level of assurance only AEON can offer. They always conduct all of their business activities (products, services, hygiene, facilities, information, etc.) with customer safety as the top priority. If there is the smallest doubt regarding customer safety, they will promptly ascertain the nature of the concern and work to resolve the issue. At AEON, they keep their promises to their customer, always behaving with integrity. They take personal responsibility to uphold the promises in our flyers and in advertisements concerning deliveries and repairs with all of our customers. If any incident or business problem should arise, they will disclose faithfully all relevant information and respond if there are further questions. At AEON, they offer high-quality products and services at reasonable prices. They strive to offer high-quality products and services so their customers can enjoy enriched lives. At the same time, they are actively engaged in re-inventing their business practices so they can offer their products and services at even lower prices. At AEON, their goal is to be the retailer that leads the way in offering customers high-quality products at reasonable prices. At AEON, they wrap their products and services in a warm greeting and a friendly smile. In addition to products and services, AEON customers can always look forward to a pleasant greeting and a caring, friendly smile. When they greet customers in their store, in their offices

17

and over the phone, customers will know what they mean when they say "AEON friendliness." At AEON, the voice of the customer gives management its direction, and we strive to address customer desires in all business practices. They consider all customer opinions, requests, and complaints to be the starting point for management decisions. They gratefully listen to and acknowledge their customers' voices as a valuable contribution to our uniqueness, and they work to quickly react to their input.

18

REFERENCES

WWW.JUSCO.COM .MY

Annual report of AEON, JUSCO 2008 Annual report of AEON, JUSCO 2009 Book of Human Resource Management 8th edition Interview with AEON JUSCO Human Resource Manager

19