Consolidated sales at Aeon Co. Ltd. (A-/Stable/--) reached ¥5.1 trillion as of fiscal 2007 (ended Feb. 20, 2008). In addition to its core retail business, Aeon is engaged in financial services and shopping center development. On a three-year average from fiscal 2005 (ended Feb. 20, 2006) to fiscal 2007, the company's EBITDA margin was 6.1% and debt-to-EBITDA ratio, including financial subsidiaries, was 3.4x. These ratios are at a comparable level with major global retailers, including French-based Carrefour S.A. (A/Stable/A-1) and British-based Tesco PLC (A-/Stable/A-2). Conversely, merger and acquisitions (M&A) and capital and business tie-ups, which Aeon has implemented as a part of its aggressive growth strategy, have failed to yield results in terms of increasing revenue and stabilizing cash flow
