Our internal directors play a crucial role in key businesses of the AEON Group, a major corporate group in Japanese retail. We strive to leverage the scale of our business to meet the expectations of our more than one billion annual customers, contribute to the environment and society, and create sustainable corporate value. We believe the key to these initiatives lies in balancing execution and supervision to enhance the effectiveness of the board of directors.
The board of directors holds active discussions on the future direction of the company from multilateral perspectives, taking into account the shifts in value that customers seek from malls.
I believe the Governance Committee, consisting solely of independent outside directors, successfully balances execution and supervision while enhancing board management supervisory functions.
The Corporate Strategy Advisory Committee, chaired by the president, facilitates in-depth discussions on our medium-term management plan.
The committee establishes performance indicators for medium- to long-term growth toward 2030 and implements sustainability measures. I feel that all outside directors participate actively in such discussions with the executive side, exchanging opinions and providing advice and recommendations.
The Company supports outside directors by organizing visits to malls both in Japan and abroad.
These visits allow outside directors to engage more with employees, providing firsthand insights into frontline issues and circumstances.
Governance Committee Oversight
I chair the Governance Committee, which assesses the fairness and rationality of transactions involving conflicts of interest, especially among group companies. We also discuss such conflicts from an objective perspective, unrestrained by past inter-company relationships. Each committee member raises topics and questions from the minority shareholder perspective to encourage deeper discussions. The committee then confirms the rationality and legitimacy of such matters. I believe this process will lead to further advancements in governance if executed carefully.
Significance of Being a Publicly Traded Subsidiary
We often focus on the disadvantages of growing market interest in parent-subsidiary listings, but I believe we must also focus on the advantages.
As a publicly traded company, AEON MALL has the advantage of raising their own funds and improving employee engagement. The Company also benefits from more disclosure opportunities, through which its fanbase grows, and accelerated decision-making processes from an independent standpoint. Such advantages lead to enhanced corporate value, which in turn increases the overall value of the group.
While many customers visit AEON MALL to shop at AEON, they also have access to merchandise, food and beverage, and entertainment specialty stores. Such access enables AEON MALL to more than double the enjoyment and value that customers gain through mall operations. Furthermore, the Group also possesses the ability to conduct joint PR by utilizing group points and other methods.
We must clearly communicate the benefits of joint PR in terms of group synergies to enhance market understanding.
Disclosures to Enhance Corporate Value
The active involvement of directors in investor relations, particularly through direct dialogue with investors as key informants, is crucial for enhancing corporate value.
We must clarify not only our growth story, but also our attitude toward meeting community expectations and our co-creation initiatives with the community through more straightforward information and messages.
I have high expectations for the president and other internal directors to harness the unique value and potential of AEON MALL, communicating effectively with customers and shareholders to make them feel excited to work with the company.
Outside Director
Governance Committee Chair
