This is a translation of the original Japanese document and is provided for informational purposes only.
If there are any discrepancies between this and the original, the original Japanese document prevails.

August 19, 2020
AEON CO., LTD.
AEON Next Preparation Co., Ltd.
Getting ready for the launch of Aeon's next-generation online grocery with
cutting-edge technology
A new company, Aeon Next Preparation Co., Ltd. concludes a reservation agreement foracquisition of construction site in Honda, Chiba.

Aeon Co., Ltd. (Chiba, President Akio Yoshida, “Aeon”) and Ocado Solutions（London, CEO Luke Jensen）, a subsidiary of UK online supermarket operator
Ocado Group plc （ London, CEO Tim Steiner, “Ocado” ） signed an exclusive
partnership in November 2019.
Aeon Next Preparation Co., Ltd. (Chiba, President Bharat Rupani, “Aeon Next”) wasestablished in December 2019. Aeon Next is preparing for the full operations of its
online grocery business, with the aim of launching Japanʼs first CFC※with cuttingedge AI and robotics functions in 2023.
Aeon Next plans to construct Japanʼs first CFC※ in Honda-cho, Midori-ku, Chiba-city.
The building site was confirmed earlier today, and a land reservation contract wasconcluded with M&K Co., Ltd.
CFC※…Customer Fulfilment Center

The CFC is characterized by its ability to hold a large range of approximately 50,000
products. It is enabled by 24 hours, highly efficient picking operations using robotics
and AI. By utilizing Ocadoʼs solution, the robots in the CFC can assemble a 50-item
order within 6 minutes. Advanced AI algorithms are also used to constantly identify
and update optimal routes for the most efficient home delivery.
The CFC in Honda is projected to have a footprint greater than 27,500 ㎡, allowing
Aeon to provide a large and scalable online grocery service to customers from thesite. It will focus serving online customers in Chiba Prefecture and Tokyo
Metropolitan Area to receive daily necessities, including fresh food, via home delivery.
The first CFC (Customer Fulfillment Center) in Japan
With the recent impact of the Covid-19 outbreak and the changing consumer
lifestyle, there is a growing need for online grocery shopping. Aeon Next will
provide customers with a service that enables them to shop comfortably fromanywhere for fresh food and daily necessities, and from a wide selection ofproducts. These products will then be conveniently delivered to their doorsteps.
As the first large-scale automated warehouse in Japan leveraging Ocadoʼsrobotics and AI, the new CFC will be a key showcase for the companyʼs domestic
business. In order to achieve its mission of "Anytime, Anywhere" delivery, anetwork of similar facilities is planned for construction in the next few years.

Contribution to revitalize local economy
The CFC operation launch in spring 2023 is slated to create about 700 jobs inChiba prefecture. Aeon Next will promote their collaboration with Chiba Cityʼs
Next Core Chiba Honda Project to excite local community and contribute to arevitalization of the economy in Chiba Prefecture.

About Ocado
Ocado is a UK-based technology company and online grocery operator.
Established in 2000 as a pure-play online grocery retailer it enabled UK
customers to receive online grocery orders through home delivery without
owning physical stores. Ocado has spent two decades innovating for online
grocery, investing in a wide technology estate that includes the robotics and AI
necessary to power their state-of-the-art CFCs, as well as cutting-edge web shop
software, home-delivery routing technologies and more. Ocado provides its
proprietary online grocery fulfilment solutions to some of the worldʼs largest
grocery retailers and holds a 50% share of Ocado Retail Ltd in the UK in a Joint
Venture with Marks & Spencer. Ocado.com has regularly been the fastest
growing supermarket in the UK.

Aeon is promoting digital shift as pillar of its mid-term business plan. Throughcollaboration with Ocado, we will build a new platform in line with our ʻCustomer
Firstʼ philosophy, contributing to customer convenience and establishing the mostcompelling online grocery in Japan.

＜About Aeon Next Preparation Co., Ltd.>
Company name: Aeon Next Preparation Co., Ltd.
Established: December 20, 2019
Address: 1-5-1 Nakase, Mihama-ku, Chiba-city, Chiba
President: Bharat RupaniBusiness line: Online supermarket operation focusing on daily necessities,
receiving online customer orders and delivering them from the centers tocustomer doorsteps.
Shareholders: 100% owned by Aeon Co., Ltd.
＜About Honda site＞
Location: 2-22-3 Honda-cho, Midori-ku, Chiba-city, Chiba
Area: CFC Footprint: 27,500 ㎡ （≒8,318 tsubo）
Total floor area for the full site: 43,070 ㎡ (≒13,027 tsubo)
Reservation contract concluded on August 19, 2020
Contact: M&K Co., Ltd.
*The Honda site is designated by the Chiba-city as the Industrial Land
Development Support Project under which M&K has worked on the landdevelopment through public-private partnership.
CFC construction to start in spring 2021