My name is Yoshida of AEON. Thank you very much for joining us today for the presentation of AEON's financial results. I would like to explain the progress of the third year of the medium-term management plan that started in fiscal 2021. In addition to the progress up to fiscal 2023, I would like to focus on the initiatives and ideas for the second half of the plan from fiscal 2024 onward. Mr. Egawa, in charge of finance and business management, will then report on the fiscal 2023 financial results. Before commencing my explanation, I would like to extend my deepest sympathies to the victims of the Noto Peninsula earthquake that occurred on January 1st and express my wish for the prompt recovery of the affected areas.
On the day following the earthquake, which coincided with the first day of sales, our immediate priority was ensuring the safety and well-being of our customers. We implemented our daily disaster drills, directing our employees to guide individuals upstairs, provide assistance, and ensure their warmth. Approximately 10,000 individuals sought refuge in around 12 AEON shopping centers, which served as temporary evacuation centers. Despite being personally affected by the disaster, our employees demonstrated remarkable resilience by effectively executing these measures, a testament to AEON's core values permeating every level of our organization. We received an abundance of appreciative feedback regarding the actions of our employees, totaling over 150 direct comments via phone and our website, with many more shared across social networking sites. Subsequently, in collaboration with local authorities, the Self-Defense Forces, and suppliers, we swiftly provided support with evacuation supplies.
Our prompt restoration of store operations and implementation of mobile sales helped reinstate our role as a crucial community lifeline. Fundraising efforts were conducted across approximately 10,000 group stores, resulting in a total donation amount of JPY 582.226 million. These contributions were collected through cashless and WAON POINT fundraising activities, with additional support from the AEON and AEON One Percent Club matching the donated sum. AEON Retail recently organized the Fukui Hokuriku Fair across approximately 270 of its stores, aiming to contribute to the recovery of the local economy. Sales from this initiative in the Kanto area reached JPY 250 million, indicating a high level of customer awareness and engagement with our supportive efforts.
Moving forward, we remain committed to extending assistance through our business endeavors, facilitating the return to normalcy in the affected regions as swiftly as possible. The global COVID-19 pandemic has largely subsided, leading to a resurgence in human movement, including travel to Japan. However, the lingering effects of supply chain disruptions stemming from regional conflicts, climate change, and a weakened yen have persisted, resulting in elevated prices, particularly in essential goods such as food. This has placed a significant strain on both consumers and businesses throughout the year. Japan has transitioned from a prolonged period of deflation, spanning approximately three decades, to an inflationary economy characterized by rising prices and interest rates. However, navigating this new economic landscape poses challenges for both customers and Japanese companies, many of whom lack prior experience in an inflationary environment.
In response to these shifts, AEON has implemented a range of group-wide initiatives aimed at bolstering our business competitiveness through structural reforms. Simultaneously, we remain committed to fulfilling our role as a social safety net by offering products and services that address the evolving needs of society amidst these environmental changes. The first key point highlighted on the slides focuses on reforming products through the lens of Topvalu to generate unique value and drive revenue growth. Reflecting on fiscal 2023, the economic landscape showcased a notable surge characterized by heightened demand from visitors to Japan, a push for higher wages, robust corporate earnings, and record highs in the Nikkei Stock Average. However, amidst this prosperity, real wages remained in negative territory due to rapid price escalations.
As a retail entity deeply intertwined with the daily lives of people, we prioritize understanding and engaging with the tangible realities of the economy. To achieve this, we maintain a dedicated team for data analysis, employing AEON's unique methodologies to interpret economic trends and align them with on-the-ground business climates and sales performances. This approach allows us to grasp the pulse of the real economy in real time. Our analysis reveals intriguing patterns, such as a decline in overall purchase volume, indicative of restrained consumer spending.... Moreover, shifts in consumption habits, such as a transition from beef to pork and chicken, possibly accelerated a little by health consciousness and a preference for private brands over national ones, underscore consumers' growing thriftiness. Armed with this insight, we leverage data-driven decision making to inform our pricing strategies and other pertinent business considerations.
In fiscal 2023, TOPVALU implemented two price reductions, primarily targeting frequently purchased items, introducing 2,500 new products and renewals while leveraging its scale to achieve cost rationalization. Despite some products seeing reduced quantities, we concurrently implemented strategies to increase volume. Group private brand sales in fiscal 2023 reached approximately JPY 1.4 trillion, marking a notable increase of around JPY 150 billion. Within this, TOPVALU experienced a remarkable double-digit growth of 110%, reaching JPY 1 trillion in sales. This growth was primarily driven by the food and health and beauty care sectors, directly impacting daily life and predominantly by TOPVALU itself. Amidst a backdrop of escalating prices for national brands, consumers increasingly turn to TOPVALU, which has consistently strengthened its product development and brand communication efforts, accelerating the shift towards private brands.
TOPVALU has already achieved a scale comparable to major Japanese manufacturers. Moving forward, we remain committed to enhancing our private brand offerings across both physical and online platforms, establishing ourselves as a sustainable competitive force in the market. Another key focus area for the group was strengthening cost control, particularly in the face of rising expenses across the board. One notable initiative involved enhancing productivity through the implementation of Store DX solutions. Additionally, the group responded collectively to the significant increase in energy prices, which had a considerable impact on our operations. Store DX initiatives included aggressive reforms in cash register systems, the adoption of electronic shelf tags, and the implementation of AI-driven ordering systems. As a result, group-wide man-hour productivity rose by 6% compared to the previous year.
In terms of energy cost reduction, AEON has long been at the forefront of industry efforts to minimize environmental impact through energy conservation measures. We intensified investments in energy-saving technologies, starting with improvements to air conditioning and refrigeration systems. Furthermore, we established a specialized team tasked with reducing procurement costs through comprehensive contracts with electricity providers, leveraging our scale and diversifying procurement methods. Consequently, in fiscal 2023, utility costs for the group decreased by approximately JPY 20 billion compared to fiscal 2022. We believe that our business performance is the result of the steady implementation of the policies outlined in the medium-term business plan, as represented by the private brand and the promotion of management reforms such as group-wide cost control and progress checks based on KPI. Consolidated group results for fiscal 2023 are shown in this slide.
Group operating revenues will exceed JPY 9.5 trillion, and operating profit and ordinary profit will reach record highs. Net income attributable to the parent company is JPY 44.6 billion, almost double that of fiscal 2022. Operating cash flow increased by JPY 130 billion to JPY 510 billion in fiscal 2023 compared to fiscal 2020, before entering the current medium-term management plan. The main factor was an increase in operating profit. The increase in investment capacity due to improved cash flow also led to approximately JPY 50 billion in human resources investment in fiscal 2023. This is the so-called wage increase. In fiscal 2024, we have reached an early agreement with the labor union for a 7% increase for the second year in a row, exceeding the 6% target set by UA Zensen.
This is expected to have an impact of approximately JPY 65 billion. We intend to respond by raising productivity by raising the top line, creating a virtuous cycle. The composition of operating profit has undergone significant changes, as depicted in the slide, driven by the expansion of retail profits, notably from general merchandise stores, GMS, and supermarkets, SM. The absolute retail operating profit has nearly doubled since fiscal 2019, reflecting the tangible outcomes of our ongoing structural reforms. Relative to the overall portfolio, the retail operating profit accounted for 52.4% in fiscal 2023, aligning closely with the targeted 52% for fiscal 2025.... While the financial services business and shopping center development business have historically been key profit drivers, they have faced challenges in adapting to shifting consumer behaviors induced by COVID-19. We perceive these sectors as areas ripe for improvement in the future.
Within the financial services business, we aim to transition from a credit card-centric focus to offering a broader array of financial services, particularly centered around payments. Similarly, in the shopping center development business, we plan to evolve by redefining the value proposition from merely shopping destinations to multifaceted spaces where people can engage in various activities, including events. The latter half of the medium-term plan is dedicated to establishing a robust business foundation for sustainable growth. As the number of companies utilizing the group's product and digital infrastructure, including private brands, expands, the benefits will extend beyond individual entities to encompass the entire group. This will foster economies of scale on the supply side, such as enhanced price responsiveness and product development capabilities, as well as bolstered economies on the demand side, including the branding of the AEON Economic Zone and the broader group.
We have prioritized business restructuring as part of a regional shift aimed at reinforcing the viability of area-specific strategies. By optimizing logistics efficiency across various business categories and achieving a certain scale within each area, we aim to enhance our competitive advantage. Additionally, by integrating diverse business categories and products, as well as investing in human capital, we can create new value and further expand our competitive edge in the region. These collective efforts enable us to scale our investments, which would be challenging for individual companies to achieve independently. In the current inflationary economic climate, we recognize the strategic importance of strategically creating economies of scale and undertaking group-wide initiatives that are otherwise difficult for individual companies to pursue alone. By doing so, we are poised to achieve sustainable growth and navigate the challenges presented by the evolving economic landscape.
Indeed, all three companies, AEON Hokkaido, AEON Tohoku, and AEON Kyushu, have experienced increases in both sales and profits in fiscal 2023, attributable to their concerted efforts in promoting regional shifts as part of their area strategies. These endeavors have facilitated a regional realignment, resulting in the transformation of each entity into a multi-format company within its respective area. This evolution has allowed for improved logistics efficiency across various business categories and fostered synergies, particularly in the development of local private brands. Moving forward, we are committed to further enhancing the product lineup with a heightened sense of speed, leveraging the momentum gained from these successes to drive continued growth and innovation within each region. For instance, since the merger of the three companies in September 2020, AEON Kyushu has steadily expanded, demonstrating growth as the new entity.
Comparing the total operating profit of the three companies in fiscal 2019 before the integration, AEON Kyushu's operating profits surged by approximately JPY 9 billion to reach approximately JPY 11 billion in fiscal 2023. Despite an increase in expenses, particularly in utilities and personnel investment, the expense ratio declined, signaling an improvement in management efficiency. In the ongoing fiscal year, we remain committed to advancing the regional shift strategy to fortify our management foundation. Recently, Fuji, Fuji Retailing, and MaxValu Nishi Nihon merged to establish the revitalized Fuji on March 1. We have formulated a new growth strategy aimed at expanding operating revenue from approximately JPY 800 billion to JPY 1 trillion by fiscal 2030. Furthermore, we are strategically reinforcing our discount store DS segment to meet the surging demand by expanding its operations.
Alongside the continued expansion of supermarket-type stores, there's been notable growth in drugstore-type establishments, boasting a market size of approximately JPY 7.5 trillion and showing remarkable growth compared to other store formats. Although the group's discount store business is already performing strongly, we recognize significant potential for future growth, especially with the normalization of high prices. With this in mind, on March 1, we merged AEON Big and MaxValu Minami Tohoku, key drivers of our discount store business. This consolidation has elevated AEON Big's presence to 122 stores spanning across 12 prefectures.
With enhanced investment capacity stemming from increased scale, we are swiftly advancing format conversions, new store developments, and private brand expansions for the original discount store format in collaboration with TOPVALU. In our strategy for the Tokyo metropolitan area, we are prioritizing the strengthening of My Basket and Big A as strategic small stores to expand our market share. Specifically, My Basket, as a compact supermarket, is rapidly gaining traction by emphasizing proximity with its 1,130 prominent stores in the Tokyo metropolitan area. Through ongoing efforts to streamline operations and offering competitive pricing, My Basket has achieved record highs in operating revenue, operating profit, and operating profit margin. We aim to expedite the opening of new stores by bolstering our development system, aiming to further increase our market share in this key region.
Meanwhile, Green Beans will continue to assert its presence in both the online and traditional food markets. With the number of Green Beans members surpassing 160,000, we are actively expanding our membership base in areas such as Setagaya and Minato wards of Tokyo and Kawasaki City in Kanagawa Prefecture, where Aeon's physical store network is less dense. We anticipate that this expansion will not only strengthen our customer base for financial services, but also benefit the overall group. Through these initiatives, the group is dedicated to enhancing its market share in the Tokyo metropolitan area by implementing a comprehensive OMO, online merges with offline approach. Aeon remains committed to advancing its environmental and green initiatives, building upon the foundation laid by the Aeon Decarbonization Vision, formulated in 2018.
The entire group is actively engaged in efforts to reduce greenhouse gas emissions from our stores to zero, focusing on three key perspectives: stores, products and logistics, and together with customers, encompassing both energy conservation and creation strategies. In line with our commitment, we've been proactive in implementing energy-saving equipment and promoting the adoption of renewable energy sources. This includes the installation of solar panels on AEON stores and parking lots, as well as the operation of the Mall power plant by AEON Mall. Additionally, we have facilitated optimal energy procurement in each area and facilitated the exchange of points for a surplus renewable energy at home. Currently, approximately 55% of the electricity used in our stores in Japan is sourced from green energy, surpassing the 2030 target set forth in the AEON Decarbonization Vision, seven years ahead of schedule.
This achievement underscores our unwavering commitment to environmental sustainability and underscores our determination to continue leading the way in green initiatives. For instance, TOPVALU is actively developing environmentally friendly products as part of our commitment to sustainable practices. In addition to this, we are collaborating with local communities to create upcycled products utilizing previously unused parts of products. With the lifting of COVID-19 restrictions, we are accelerating our tree planting efforts in collaboration with local communities, group companies, and the AEON Environmental Foundation. While the initiatives highlighted in this slide serve as representative examples, we are eager to collaborate with all stakeholders to advance decarbonization efforts, leveraging AEON's strengths in food, shopping centers, and environmental activities conducted in partnership with local communities. Together, we can make meaningful strides towards a more sustainable future.
Lastly, this year marks the 50th anniversary of Aeon's listing on the Tokyo, Osaka, and Nagoya stock exchanges in September 1974. At that time, Aeon operated 100 stores in the Kansai and Chubu regions under the name JUSCO. Today, with the invaluable support of our customers and various stakeholders, we have evolved into a group company boasting 17,800 stores, 300 consolidated subsidiaries, and operating revenue exceeding JPY 9.5 trillion, primarily across Japan, China, and ASEAN countries. Our shareholder base has expanded significantly from 4,000 in 1975 to 900,000 today. To sustain our growth trajectory, this year, we are steadfastly executing our growth strategy based on the five reforms and green strategy outlined in our medium-term management plan. Furthermore, we are accelerating our growth agenda by maximizing group synergies through the utilization of scale and multiple formats. That concludes my presentation.
My name is Egawa. I'm in charge of finance and business management. Thank you very much for taking time out of your busy schedules today to attend AEON's financial results briefing. I would like to take this opportunity to explain our financial results for the fiscal year ended February 29, 2024. During the period under review, the business environment remained fraught with uncertainty, characterized by persistent concerns over inflation, global political instability, slowing growth in the Chinese economy, and the potential downside risks associated with tight monetary policies implemented by governments worldwide.... In Japan, the gradual normalization of socioeconomic activities previously hindered by the COVID-19 pandemic has unfolded, leading to improvements in the employment and income landscape. However, the relentless upward trend in prices has prompted individuals to adopt more frugal spending habits in their daily consumption, highlighting a growing polarization in consumer behavior.
Against this backdrop, we have made steady advancements in the five reforms outlined in our medium-term management plan. Notably, within our core retail business, we have focused on product-oriented reforms, with Topvalu serving as the cornerstone of our strategy. Additionally, we have pursued productivity enhancements through digital transformation, DX initiatives, and implemented rigorous cost controls centered on profit structure reforms. As a result of these efforts, our consolidated operating revenue, operating profit, ordinary profit, and net income attributable to owners of the parent for the current fiscal year have surpassed expectations, reaching JPY 9,553.5 billion, JPY 250.8 billion, JPY 237.4 billion, and JPY 44.6 billion, respectively, more than doubling from the previous year. Here is a graph showing the changes over the five-year period.
Operating revenues and all types of profit have increased for three consecutive years. The table here shows results by segment. In terms of operating revenues, all segments reported increases. As for operating profit, the GMS business, the supermarket business, and the discount store business together increased income by JPY 38.1 billion. In other businesses, the shopping center development business and the services and specialty store business reported increased profits due to the progress in the recovery of customer traffic. On the other hand, income decreased in the financial services business, where bad debt-related expenses increased in line with the balance of trade receivables in the international business, which was significantly affected by the deteriorating macroeconomic environment in various countries, and in the health and wellness business, which was affected by a decline in demand for COVID-19 countermeasure-related products.
In the GMS business, the combination of long-term structural reforms and regional realignment initiatives yielded substantial results, marking the third consecutive year of improved performance. Segment income doubled to JPY 28.3 billion, representing a notable increase of JPY 14.2 billion compared to the previous year. As illustrated in the upper right graph, individual company performance within the GMS sector saw income growth across AEON Retail, AEON Kyushu, AEON Hokkaido, and AEON Tohoku GMS companies, all of which recently underwent regional reorganization. AEON Kyushu, in particular, expanded its scale following the addition of MaxValu Kyushu, a supermarket business, resulting in a non-consolidated operating profit of JPY 10.9 billion, an increase of JPY 2.6 billion from the previous year. Across all companies, robust performances were observed in food products and health and beauty care categories throughout the fiscal year.
We intensified efforts to promote TOPVALU, leveraging its competitive pricing advantage. Additionally, in the food products category, we enhanced the range of value-added products such as delicatessen and fresh items, leading to a significant boost in gross profit. In the apparel sector, sales of clothing experienced notable growth, particularly in the first half of the fiscal year, driven by the easing of COVID-19 restrictions and the subsequent increase in demand for new outfits, shoes, bags, and related items. To address cost-related challenges, we prioritized investments in efficiency improvements, leveraging digital technology and AI to enhance operations at food checkout counters and sales floors. Furthermore, we implemented measures to reduce utility costs through group procurement of electricity and other initiatives. These efforts resulted in a substantial increase in profit within the apparel segment.
AEON Retail, the flagship company within the GMS business, has diligently pursued profit structure reforms alongside product-oriented initiatives, store revitalization efforts, and profitability enhancements in the developer business. These concerted efforts yielded tangible results, with operating gross profit, including gross profit on sales, surging by JPY 33.1 billion. Simultaneously, SG&A expenses were effectively managed, culminating in an operating profit of JPY 8.2 billion, an impressive increase of JPY 2.5 billion from the previous year. Furthermore, AEON Retail achieved profitability for the first time in five fiscal years. In terms of merchandise strategy, AEON Retail has responded adeptly to shifts in the social environment, implementing differentiation strategies such as the polarization strategy and expansion of product lineups in growth areas....
Notably, in food products and health and beauty care segments, the company reinforced offerings of high value-added products tailored for seasonal and annual events like Christmas and New Year's holidays. This strategic focus resulted in both sales and gross profit growth, significantly contributing to profit improvement. Similarly, in the apparel business, reforms in merchandise, enhancements to sales floors, and bolstering of customer service personnel have all contributed to notable improvements in gross profit margins. Moreover, in the realm of profit structure reforms, AEON Retail has proactively controlled cost escalations by reducing store maintenance expenses and fostering investments in energy conservation and enhancing man-hour productivity. These measures align with the company's overarching objective of building a sustainable management foundation capable of generating stable profits.
In the supermarket business, regional reorganization efforts centered around supermarket companies, coupled with the structural reforms, have yielded significant results, with operating profits soaring by JPY 19.0 billion from the previous year to reach JPY 41.9 billion. Noteworthy performance was observed across various companies within this segment. Regional supermarkets, Fuji and MaxValu Tokai, both achieved impressive year-on-year increases of 30%, contributing to the segment's overall income growth. My Basket, a small urban supermarket, stood out with a remarkable threefold increase in profit, primarily driven by its expanding presence in the Tokyo metropolitan area. Leveraging operational efficiency enhancements and its dominant market position, My Basket achieved a record operating profit of JPY 7.4 billion, a substantial increase of JPY 5.5 billion from the previous year.
Furthermore, supermarket companies have implemented strategies to optimize fresh food inventories, strengthen pricing policies, expand sales of high-value added TOPVALU, and local private brand products, and diversify offerings with delicatessen and frozen foods, all of which are burgeoning categories. Additionally, the adoption of self-checkout systems, electronic shelf tags, and AI-driven automated ordering systems has been instrumental in promoting operational efficiency, driving labor savings, and enhancing man-hour productivity. Looking ahead, efforts will be intensified in the Tokyo metropolitan area to accelerate the opening of My Basket stores and expand the reach of the Green Beans service, thereby bolstering the group's market share in both real and online markets. The discount store business experienced favorable conditions amid the growing polarization of consumption, achieving an operating profit of JPY 8.4 billion, a significant increase of JPY 4.8 billion from the previous year.
As households face continuous price hikes in daily necessities, the company distinguished itself by offering standard products and discount store-specific private brands through an everyday low price strategy. Moreover, appealing to customers through case sales and large volume products resulted in higher sales per customer. Efforts to establish a low-cost operating model for the discount store format included initiatives to reduce store operations and implement labor-saving measures, contributing to enhanced operational efficiency. Additionally, the adoption of cashless payment systems such as iAEON and AEON Pay has further improved customer convenience despite the discount store's typical format. Looking ahead, the integration of AEON Big and MaxValu Minami Tohoku in March 2024 aims to bolster scale and profitability. Despite expectations of continued consumption polarization due to inflation, the discount store business is perceived to hold significant growth potential.
As such, it remains a focal point for the group's strategic focus and investment. In the health and wellness business, the segment's operating profit for the period amounted to JPY 42.6 billion, reflecting a decrease of JPY 2.2 billion compared to the previous year. Despite endeavors to bolster sales promotion by enhancing private brand offerings, reinforcing counseling services, and leveraging loyalty programs, the decline can be attributed to the reduced demand for COVID-19 related products such as inspection kits and masks, which had driven significant sales in the preceding year. In fiscal 2024, our focus will be on enhancing profitability through meticulous cost control measures. This strategy will revolve around augmenting the composition ratio of private brands, fortifying loyalty programs centered on WAON POINT, fostering the establishment of dispensing facilities, and enhancing dispensing operations.
These initiatives aim to mitigate the impact of dwindling demand for COVID-19 related products and to foster sustained growth in the health and wellness business. In the financial services business, the segment's operating profit for fiscal 2023 amounted to JPY 51.2 billion, reflecting a decrease of JPY 7.8 billion compared to the previous year. This decline was primarily attributed to bad debt-related expenses overseas and increased sales promotion expenses aimed at expanding the domestic customer base. In Japan, the slower-than-expected growth in shopping transaction volume and delayed recovery of the trade receivables balance, along with increased bad debt-related expenses and sales promotion expenses for customer base expansion, were the main contributing factors. Overseas, bad debt-related expenses increased in various regions, although signs of improvement were observed.
Notably, in Greater China, operating revenue and profits reached record highs due to the introduction of a credit scoring model and strength in debt collection systems. Similarly, in Malaysia, the operating receivables balance showed steady growth. Efforts to recover the operating receivables balance were intensified in Thailand while considering the balance between credit costs and operating receivables. Other notable developments included the acquisition of a company providing personal loans in Vietnam as a wholly-owned subsidiary in October 2023, and preparations for the launch of a digital bank in Malaysia. Looking ahead to fiscal 2024, the focus will be on increasing the balance of operating receivables and enhancing forward-looking credit management to establish a stable revenue base.
In the shopping center development business, operating profit was JPY 47.3 billion, an increase of JPY 2.1 billion from the previous year, although it did not reach the pre-COVID-19 profit level. In Japan, each mall held events to attract customers by strengthening ties with local communities and also linked apps, while on point measures and other initiatives to stimulate purchasing. In addition to these efforts, the company sought to attract customers and increase sales while leveraging mall assets, and achieved an increase of JPY 1.7 billion in profit, with sales at specialty stores in existing malls up by 5.6% from the previous year.
In overseas markets, where operating profit reached a record high, in Vietnam, our highest priority area for opening new stores, we are working to secure a pipeline for dominance in both the southern area, centering on Ho Chi Minh City, and the northern area, centering on Hanoi, as well as in peripheral cities in the central area. In Indonesia, we opened AEON Mall Deltam as in March 2024. These two countries have increased profits. In China, although there are concerns about a decline in the economic growth rate due to the sluggish real estate market and other factors, our malls are performing well so far, especially in the food and beverage and amusement stores. Specialty store sales at existing malls are growing at 130.3% year-on-year, with malls in Jiangsu and Hubei provinces performing particularly well.
Therefore, excluding the impact of the one-time extraordinary loss incurred in the previous year related to COVID-19, operating profit increased by JPY 2.8 billion in real terms. In the shopping center development business, although performance is still significantly down from pre-COVID-19 levels, we are steadily increasing profits each year and will aim to accelerate the speed of growth in fiscal 2024. In the services and specialty store business, customer numbers rebounded compared to the previous year under COVID-19, with sales steadily recovering. Segment operating profit reached JPY 17.2 billion, approaching pre-COVID levels, marking the third consecutive year of profit growth and a notable increase of JPY 7 billion from the previous year. Notable contributions to the profit increase were observed across individual companies within the segment. AEON Fantasy, AEON Entertainment, and COX played significant roles in driving overall segment profits.
AEON Fantasy resumed the introduction of new game machines in its domestic business, leading to sustained strong revenue. In the ASEAN business, Malaysia and the Philippines achieved record-high operating revenue with robust sales performance. AEON Entertainment focused on securing profits unaffected by film showing, emphasizing high unit price content like live viewing and sales of high value-added original products in food, beverage, and merchandise. This strategy resulted in a significant increase in average spending per customer compared to the previous year. COX reported an operating profit increase due to improved operating gross profit and cost reductions achieved through enhanced brand strength, merchandising reforms, and supplier adjustments. During its restructuring phase, G- Foot achieved a notable increase in profitability amounting to JPY 3.7 billion. This enhancement was facilitated through a series of strategic measures, including merchandising structural reforms, business structural reforms, and optimizations in organizational and cost structures.
These initiatives were designed to revitalize store profitability and yielded significant improvements in the company's financial performance. In the international business segment, the operating profit was JPY 10.3 billion, experiencing a decline of JPY 2.4 billion from the previous year. Particularly in the ASEAN region, both AEON Malaysia and AEON Vietnam reported reduced profits due to the macroeconomic slowdown. This was primarily attributed to increased labor and equipment costs resulting from inflation, coupled with sluggish demand in the non-food sector amid the economic downturn. Despite these challenges, AEON Malaysia saw a rise in gross profit from food products by focusing on essential product pricing appeals, while improved tenant occupancy rates contributed to a recovery trend in rent income. In Vietnam, significant growth in food product sales occurred through the expansion of TOPVALU offerings.
Efforts to enhance price competitiveness and the price-to-earnings ratio through the expansion of locally produced private brand products in apparel and home furnishing categories are underway. In China, profitability is on an upward trajectory, partly due to the relaxation of the zero COVID policy, albeit with regional variations. AEON Hubei is notably improving its performance, and the Wuhan Jiangxia store, opened in November 2023, has demonstrated promising performance. These insights provide a summary of the fiscal 2023 results by segment, setting the stage for outlining our forecast for fiscal 2024. For fiscal 2024, our targets are ambitious yet achievable. We aim for record highs in operating revenue, operating profit, and ordinary profit, with a net income attributable to shareholders of the parent company reaching JPY 46 billion. Despite anticipating cost increases that may pose challenges, we are committed to realizing our full year forecast.
We will adopt proactive measures as a group to mitigate these impacts and diligently execute the five reforms and priority measures outlined in our medium-term management plan. Through strategic planning and concerted efforts, we are confident in our ability to achieve our fiscal 2024 targets and drive sustainable growth for the organization. Total investment for fiscal 2023 was JPY 396.2 billion, slightly lower than planned. The breakdown of investments is almost in line with the plan, and for fiscal 2024, we are planning a strong total of JPY 500 billion-JPY 550 billion in investments, as performance has improved significantly and cash flows are reasonable.
Our priority areas of investment will be in overseas markets that will bring about discontinuous growth for the Group, particularly in Vietnam, in the areas of online supermarkets and e-commerce centered on Green Beans and in digital, IT, and logistics, which will serve as infrastructure to improve the profitability, efficiency, and productivity of the Group companies. In Japan, from the viewpoint of improving the value of existing assets, we will revitalize existing stores and make steady growth investments in small stores, discount stores, drugstores, My Basket, and others, where investment effects are high. It's wonderful to acknowledge the milestone of the fiftieth anniversary of our company's listing and express gratitude to our shareholders for their steadfast support over the years.
With this in mind, we plan to distribute an annual dividend of JPY 40 per share for fiscal 2024, comprising an ordinary dividend of JPY 36 per share and a special commemorative dividend of JPY 4 per share. We remain dedicated to sustainable management practices and the continuous enhancement of the Group's corporate value. Thank you for your attention, and we look forward to continued growth and success in the coming year. As we transition into the latter phase of our medium-term management plan, I've observed that significant strides have been made in implementing structural reforms during the initial period. Could you provide a comprehensive overview highlighting areas of notable progress, as well as those where advancements have been relatively sluggish? Additionally, it appears that the prevailing level of inflation was not anticipated at the plan's inception.
Given these unforeseen circumstances, I hold a conviction that our company is well-positioned to leverage its scale advantage. Against this backdrop of shifting external factors, could you reaffirm the expectations guiding our forthcoming growth strategy? This is Yoshida. After three years of diligent efforts towards our medium-term management plan, with two more years ahead, it's crucial to reflect on our journey thus far. When I assumed the presidency and initiated the plan the following year, we couldn't have anticipated the inflationary environment we are currently navigating. Energy and labor costs were not factored into our initial earnings projections. Despite this, our adaptability and resilience have been remarkable. In response to unforeseen challenges, such as inflation, we implemented agile adjustments. For instance, we established a dedicated team to analyze and address electric power concerns, resulting in effective measures to mitigate risks....
Similarly, tackling labor costs required strategic initiatives like enhancing productivity through DX. By involving part-time staff in DX utilization, we fostered first-hand understanding and facilitated smoother operations. Our focus on DX extended to experimenting with self-cash registers named Regi Go in selected AEON retail stores, leading to clear performance improvements and subsequent widespread adoption. This targeted approach allowed us to bridge the gap between our original and current plans, demonstrating our agility and speed in responding to evolving circumstances. In terms of performance, our general merchandise stores, GMS segment, exhibited notable progress. Over the past three years, GMS has transitioned from a struggling entity to a robust business model. This transformation involved precise reductions in inventory and operational costs, paving the way for sustained growth.
Leveraging the unique appeal of our one-stop-shop concept, we aim to further strengthen GMS and capitalize on its growth potential, although our competitors are retreating because of its difficulty. However, challenges persist, particularly in building our top line, especially within the e-commerce realm and non-food product offerings. Addressing these areas will be pivotal for future development. Encouragingly, our private brand segment has emerged as a standout success. Employee attitudes toward private brands have shifted positively, aligning the entire company towards earnest engagement in this area. Having attended the press conference on the integration of Tsuruha and the subsequent presentations by Tsuruha and Welcia, I have a preliminary understanding of their objectives. I anticipate that your forthcoming midterm plan will materialize around 2030. The merger of Tsuruha and Welcia is poised to play a crucial role in Aeon Group's healthcare strategy.
From AEON's standpoint, what opportunities do you envision stemming from this merger, both domestically and internationally? This is Yoshida. I still strongly believe in our potential for scalability, not just within the pharmaceutical industry, but also in the supermarket sector. Without reaching a certain level of scale, investing in digital transformation, DX and logistics, becomes cost prohibitive due to increased expense ratios. In light of this, it's crucial that both parties harness this skill effectively and structure it in a manner that is mutually beneficial. We envision ourselves embodying the attributes of a company dedicated to addressing societal challenges. Japan's demographic trends indicate a declining birth rate and an aging population, which, if not addressed through an extension of healthy life expectancy, could exacerbate challenges within various insurance programs, such as long-term care and strain the tax system.
Extending healthy life expectancy involves creating a network of health hubs, digitally interconnected to form an ecosystem that positions us as a local health hub. We perceive this as an opportunity to tackle societal issues and integrate them into our business strategy. President Tsuruha and I have been engaged in discussions on how we can drive societal change in Japan by pursuing this objective. The membership count of Green Beans has steadily risen to over 160,000. Considering your initial focus on young families, have you been successful in attracting this demographic? Additionally, could you elaborate on the types of products that perform well within the Green Beans service? This is Shikata. Since its launch in July last year, Green Beans has experienced steady growth, boasting a current membership of 160,000.
Its expansion is particularly notable in central Tokyo, encompassing areas like Chūō-ku, Minato-ku, and Ōta-ku, where AEON store presence was previously limited. Initially, the customer base was predominantly located in Chiba due to the proximity of the customer fulfillment center. However, recent data indicates a shift, with half of the membership now situated in Tokyo. Notably, customers in their twenties and thirties, as anticipated from the outset, now comprise over 30% of the total membership, emerging as the largest demographic segment. Analysis of recent top-selling items reveals strong demand for Freshness Plus products, leveraging technology to extend the shelf life of perishables by one week. Customers purchasing Freshness Plus items demonstrated notable propensity for repeat business. Given these trends, we recognize Green Beans' strength in offering not only grocery products, but also fresh items.
Moving forward, we intend to sustain our growth trajectory by expanding our product mix to encompass both categories. In the assumption of your forecast for fiscal 2024, you say that the Logistics 2024 issue will have an impact of a JPY 4 billion increase over the previous year. Please tell us the specifics of this. This is Egawa. While we have allocated JPY 4 billion as a figure, it's important to clarify that this represents our target to bring down costs to JPY 4 billion, despite projections indicating an increase by more than three digits. Our logistics have been undergoing reforms since the 2000s, with approximately 70% of our resources now internally managed. Moving forward, we aim to enhance the efficiency of the entire group to mitigate the anticipated rise in logistics costs, anticipated to be a challenge in 2024.
Despite ongoing preparations since last year and the preceding year, we acknowledge that there will likely be an initial increase of approximately JPY 4 billion. Nonetheless, we remain committed to further reducing this figure over time. Amidst widespread discussions among retailers about inflation and the polarization of consumption, AEON has also adopted these themes. While these terms are frequently used and expressed with conviction, I'm interested in hearing your perspective on the consumption landscape for fiscal year 2025, as envisioned by AEON. Forecasts suggest that wage and price increases will moderate, leading to a potential rise in actual income. Given these projected changes, do you believe it's feasible to sustain revenue growth without significant alterations to AEON's private brand and sales promotion strategies, which were in place until last year? Alternatively, do you anticipate that consumers will remain price-sensitive and inclined towards thriftiness in the food category?
Or might there be a shift towards purchasing higher-priced items? This is Yoshida. One issue we face concerns wages. While AEON has increased wages, it's essential to consider how many of Japan's over 100 million people will directly benefit from these raises. For instance, individuals employed in primary industries and retirees relying on pensions won't directly reap the benefits of reported wage hikes, and they constitute a significant portion of the Japanese population. Comparing non-food and food items, the rise in food prices is notably steep. The Engel's coefficient, indicating the proportion of income spent on food, is alarmingly high. Misjudging this and increasing food prices could deter customers from favoring our stores, as food accounts for a substantial share of their budget.
We're witnessing tangible evidence of consumption polarization, particularly during special occasions like New Year's and Obon, where even price-conscious AEON customers are purchasing luxury items more frequently than anticipated. However, there's a notable shift in everyday shopping habits. While health considerations may be a factor, beef sales are declining, while chicken and pork sales are on the rise. Additionally, although global sales trends are declining, TOPVALU sales are increasing, highlighting the importance of pricing. By addressing the needs of customers seeking affordable dinner options without compromising on quality, we can develop products tailored to this segment. We aim to offer both quality and affordability, epitomized by our BESTPRICE private brand. The remarkable growth of discount stores underscores the evolving preferences of customers, a trend we anticipate will persist for the foreseeable future.
Despite some variability in segment profitability during fiscal year 2023, the consolidated operating profits saw an increase of approximately JPY 40 billion. For the current fiscal year, the goal is to raise profits by about JPY 20 billion, half of the previous amount. Regrettably, this entails a slowdown in the growth rate. I understand there are several factors at play, including the diminishing positive impact of price increases, a rise in capital investment plans by roughly JPY 100 billion, and upfront expenses. How do you plan to incorporate the increased costs of labor and logistics into the fiscal year 2024 forecast? This is Egawa. In the retail business, including the newly consolidated Yanageya, the group aims to achieve a 5% increase in sales and a 0.5 percentage point improvement in gross profit margin compared to the previous year.
Additionally, the company anticipates a rise in operating revenues, which includes tenant income. Furthermore, the company foresees an uptick in operating revenue within the shopping center development business and the financial services business, which were previously profitable but experienced a slight decline in performance last year. Regarding costs, the company expects a JPY 65 billion increase in wages and a JPY 10 billion rise in energy costs for fiscal 2024, following a JPY 20 billion decrease in fiscal 2023 compared to the previous year. Moreover, real estate costs and sales promotion expenses are anticipated to increase. After factoring in these costs, the operating profit target for fiscal 2024 is set at JPY 270 billion. What is your evaluation of the current performance and the reasons behind it?...
Furthermore, I understand that the operating revenue target of JPY 10 trillion for fiscal year 2024 is the second largest among Japanese retailers, following Seven & i. Could you share your insights on this objective and provide the rationale behind it? This is Yoshida. I believe I can assess the fiscal 2023 results to a certain extent. We initially revised our projections upward in January, and the final outcome surpassed even those revised expectations. I attribute the success primarily to the exceptional performance of our frontline employees throughout the year. Moving forward, while we regard the JPY 10 trillion target for this fiscal year as a milestone rather than a definitive goal, we aim to surpass it in the coming years and continue to set higher benchmarks thereafter. As discussed today, establishing a robust business structure requires scaling our operations to a certain extent.
Therefore, we must concurrently focus on optimizing efficiency by integrating our operations effectively while expanding our scale. It's imperative to strike a balance between productivity and scale, as they are both essential components for our success. Compared to the fiscal 2025 target of achieving a debt EBITDA ratio of 2.5 times, the actual ratio for fiscal 2023 stood at 3.5 times, indicating a significant gap. What strategies do you have in place to bring down the substantial debt to achieve the target ratio of 2.5 times or less relative to EBITDA? This is Egawa. The debt EBITDA ratio, excluding financials, is currently set at 2.5 times or less for net, as indicated by the figures.
Our investment landscape has experienced a slight delay due to the COVID-19 pandemic, resulting in capital investment not progressing as initially anticipated during the first three years of our midterm management plan. The capital investment amount for the fiscal year ending March 31, 2023, including overseas investments, fell slightly short of our expectations. While our original plan envisioned reaping the benefits of aggressive growth-oriented investments in the fourth and fifth years of the midterm management plan, this timeline has been slightly delayed. Consequently, we have formulated a rather assertive plan for the current fiscal year. Despite a slight increase in interest-bearing debt in fiscal 2023 and with plans for significant capital investment in fiscal 2024, it is unlikely that interest-bearing debt will decrease significantly. As such, achieving a debt EBITDA ratio of 2.5 times presents a considerable challenge.
However, in pursuit of financial soundness, we aim to adjust our goals accordingly. In the retail sector, the private brand and DX initiatives played a significant role in enhancing performance during fiscal 2023. However, I anticipate challenges in fiscal 2024, including rising wages, distribution costs, and utility expenses, which could potentially offset profit gains. In light of these circumstances, what strategies do you intend to implement to bolster profits this fiscal year? This is Yoshida. To bolster our top line, we plan to increase the proportion of private brand offerings, whether through price adjustments or maintaining firm pricing strategies within certain price ranges. Our goal is to provide products that meet customer needs consistently. Private branding is pivotal in achieving this objective, as it allows us to maintain profitability while catering to customer demands. However, achieving this requires a certain scale, without which it becomes challenging.
We aim to leverage our scale to drive the development of private brands effectively. Regarding our bottom line, we are still in the process of enhancing productivity in several areas. There is notable variation in productivity levels among our operating companies, with some demonstrating high efficiency and others lagging behind. We plan to implement a horizontal deployment strategy, whereby methods proven successful in high-productivity companies will be adopted by those with lower productivity to elevate their performance. Additionally, companies that have yet to implement these methods, despite their proven efficacy, will be urged to do so promptly. Notably, major-listed subsidiaries such as AEON Financial, AEON Mall, and United Supermarket Holdings faced challenges in fiscal 2023. It appears that performance discrepancies exist among the various operating companies within the group.
While I understand that horizontal cooperation, particularly in the GMS, General Merchandise Store business, is underway, I'm curious about your approach to managing this situation as a holding company. You've probably mentioned the pursuit of economies of scale. Could you elaborate on your strategy for assuming a leadership role in organizing the business entities as a holding company while still maintaining a level of autonomy among them? This is Yoshida. Unless we delineate clearly between decentralizing authority to individual operating companies and centralizing such authority within the holding company, we risk diluting the distinctiveness of each company.... Therefore, it's crucial to strike a delicate balance between these two approaches. While certain initiatives may benefit from a unified approach, it's important to recognize that each company operates within a unique business area and competitive landscape, making a uniform strategy unsuitable. Particularly in community-centric strategies, close alignment with local areas is essential.
In cases where competitors have a strong foothold, we must devise strategies to compete effectively. However, if we can provide superior products at reduced costs, we should prioritize this approach. It's imperative to find equilibrium between competitiveness and cost-effectiveness. In fiscal 2023, the shopping center development business and the financial services business underperformed, prompting us to address these issues and revitalize them as growth areas this year. For shopping malls, we've adapted operations to avoid overcrowding during the COVID-19 pandemic by decentralizing customer flow. As we aim to restore malls to pre-pandemic conditions, including hosting various events, we also seek to modernize facilities to attract customers, particularly younger demographics, by introducing digital technologies. We are increasing investments beyond initial plans this fiscal year, primarily aimed at revitalization efforts.
Inflation has significantly inflated real estate costs, but with approximately 18,000 locations, we see potential in optimizing existing assets, leveraging increased property values. Properly designed facilities atop these locations could unlock additional value, and we intend to explore such opportunities. I'd like to inquire about the revamped Fuji. I believe this venture will serve as a litmus test for AEON's commitment to rural areas. However, the strategy required for rural regions may differ from that for the Tokyo metropolitan area. For instance, I believe expertise in operating a mobile supermarket may be more crucial than focusing solely on an online supermarket model. Additionally, fostering community engagement through initiatives like local production for local consumption is essential for sustainable business in these areas. How do you perceive Fuji's role in the region considering these factors? This is Yoshida.
The newly rebranded Fuji, following its merger with MaxValu Nishi Nihon on March 1, commenced operations as planned in March 2024. With a long-standing presence in the region, we possess deep insights into local dynamics and customer preferences, a cornerstone of our operations. We remain committed to prioritizing this aspect while incorporating AEON's expertise. Through strategic redesigns in logistics and other areas, we anticipate significant cost reductions. By leveraging our expertise in handling local products alongside the introduction of TOPVALU's nationwide offerings, we expect a substantial enhancement in profitability. Furthermore, the integration of personnel from both Fuji and AEON has fostered the emergence of innovative ideas. Attending Fuji's rally was an invigorating experience, highlighting the dynamic culture within the organization. I was inspired by the energy and motivation displayed, reaffirming my confidence in our collective ability to fortify a robust business structure pragmatically.
The industry landscape is on the brink of significant transformation, marked by regional reorganization and mobile phone companies acquiring stakes in convenience stores. What do you believe will be the impact of these developments on the consumer market? This is Yoshida. Regardless, it's imperative to acknowledge that mergers and acquisitions will likely persist, given the increasing necessity for a certain scale of business to effectively invest in various initiatives. We've already witnessed positive outcomes from the reorganization and integration of regional entities across Hokkaido, Tohoku, Chugoku, and Shikoku, Kyushu, and other regions. Establishing a significant scale within each region is essential for cultivating a presence that resonates with local dynamics. To navigate upcoming challenges, we must prioritize initiatives such as digitalization and the promotion of private brand products. Addressing logistics concerns, particularly those arising in 2024, necessitates a comprehensive redesign at a certain scale.
Collaboration with other companies may be vital in this endeavor. Our logistics design must anticipate such integration on a significant scale.