Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — H1 FY2026 Earnings Presentation
50 slides from Aeon Financial Service's earnings presentation, Oct 9, 2026
Slide 1: FY2026 2Q IR Presentation Material
This is an abridged 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. FY2026 2Q IR Presentation Material October 9, 2026 Stock Listing: Tokyo Stock Exch
Slide 2: Agenda
Agenda １ FY2026 Interim Period Financial Results Overview ２ Domestic Business ３ Overseas Business ４ Key Initiatives Appendix
Slide 3: Consolidated Financial Highlights for the First Half of FY2026
Consolidated Financial Highlights for the First Half of the FY2026 FY26 Full Year Progress Consolidated YoY Consolidated Rate Domestic YoY Overseas YoY Forecast Operating revenue 311.2 bn 112 % 181.2 bn 110 % 131.0 bn 114 % 600.0 bn 52 % Operating profit 25.2 bn 89 % 5.9 bn 63 % 19.6 bn 105 % 45.0 b
Slide 4: FY2026 2nd Quarter (3 Months) Consolidated Financial Highlights
FY2026 2nd Quarter (3 Months) Consolidated Financial Highlights Consolidated YoY Domestic YoY Overseas YoY Operating 157.3 bn 111 % 92.1 bn 109 % 65.6 bn 112 % Revenue Operating 7.7 bn 50 % 0.03 bn 1 % 7.6 bn 82 % profit Ordinary 8.4 bn 55 % – – – – profit Profit attributable to owners of 1.0 bn 25
Slide 5: Summary of First Half Consolidated Financial Results
Summary of First Half Consolidated Financial Results Consolidated operating revenue was YoY 112 % , and operating profit was YoY 89 % • In June, the domestic core system went live With the start of full-scale operations, 7.6 billion yen (of which 5.1 billion yen was non-recurring) were recognized as
Slide 6: Fiscal Year 2026 Earnings and Dividend Forecasts
Fiscal Year 2026 Earnings and Dividend Forecasts (Unit: bn JPY) FY2025 Results FY2026 Forecast Consolidated Consolidated YoY Domestic Overseas Operating Revenue 569.3 600.0 +30.7 355.0 245.0 Operating Profit 60.6 45.0 ▲15.6 5.0 40.0 Operating Profit 10.7% 7.5% ▲2.7pt 1.4% 16.3% Margin Ordinary Profi
Slide 7: Domestic Business
Domestic Business 7
Slide 8: [Domestic] Breakdown of Operating Profit
[Domestic] Breakdown of Operating Profit • While revenue from credit cards and financial services grew, operating profit fell below the level of the same period last year due to the recording of costs related to the core system Unit: bn JPY Gain on Other securitization income Revenue Decrease in +1.
Slide 9: [Domestic] Customer Base <Active IDs>
[Domestic] Customer Base <Active IDs> • Number of active IDs increased by 3.58 million YoY; growth in the number of members using prepaid charge payments (up 2.6 million year-over-year) drove growth (millions) 41.07 million 42 (YoY110% / YTD+1.82 million) 34 26 18 0 10 22/2Q 23/2Q 24/Q2 25/2Q 26/2Q
Slide 10: [Domestic] Customer Base <AEON Card, AEON Pay>
[Domestic] Customer Base <AEON Card, AEON Pay> • The number of active card members decreased by 20,000 from the beginning of the period but increased by 30,000 compared to the same period last year • Due to awareness-raising initiatives and improvements to app functionality, the number of active AEO
Slide 11: [Domestic] In-House Payment Transaction Volume
[Domestic] In-House Payment Transaction Volume • Cumulative Transaction Volume for In-House Payment Services was 4,945.2 billion yen (YoY 100%), 45.0% of annual KPI target • AEON Pay transaction volume increased, but it was not enough to offset the decline in e-money In-House transaction volume AEON
Slide 12: [Domestic] Status of High-Yield Receivables Balance
[Domestic] Status of High-Yield Receivables Balance • Due to the expansion of installment receivables and unsecured loan receivables, the balance of high-yield receivables increased by 102% YoY * • Unsecured loan business grows through enhanced marketing utilizing AEON Card member data. Balance befo
Slide 13: [Domestic] Housing-related Loans/Corporate Lending
[Domestic] Housing-related Loans/Corporate Lending • For housing loans, transaction volume remained on par with the previous year due to interest rate setting prioritizing profitability; the outstanding balance decreased by 18.3 billion yen compared to the beginning of the period. • Corporate lendin
Slide 14: [Domestic] Number of Accounts and Deposit Balances
[Domestic] Number of Accounts and Deposit Balances • Promoting the adoption of Aeon Card Select※ as a primary everyday payment card, (Select’s share of new memberships: 14% → 25%) • Aim to achieve the KPI target for ordinary deposit balances through the implementation of various initiatives Number o
Slide 15: [Domestic] 2Q Balance Sheet Status
[Domestic] 2Q Balance Sheet Status • Amid competition to gather deposits, the company maintained stable funding by curbing the rise in funding yields by using time deposits to limit outflows, • Yield on assets (loans, installment receivables) improved, exceeding the funding yield and boosting profit
Slide 16: [Domestic] Interest Margin on Deposits and Loans
[Domestic] Interest Margin on Deposits and Loans • Although the figure declined compared to the first quarter due to an increase in the proportion of installment loan receivables, an increase in commission rates * have led to an upward trend …① • In May of the 26th year, the benchmark mortgage rate
Slide 17: [Domestic] Yen-Denominated Bonds
[Domestic] Yen-Denominated Bonds • Proceeding with the rebalancing of government bonds to shorten the duration of yen-denominated bonds and improve yields AEON Bank: Securities Portfolio Trends in Yen-Denominated Bond Balances by Remaining Maturity Composition Change from (bn JPY) (bn JPY) FY26/2Q R
Slide 18: [Domestic] Progress on Cost Structure Reform
[Domestic] Progress on Cost Structure Reform • Promoting optimal staffing, primarily at service centers, to reduce outsourcing costs • Beginning a proof of concept (PoC) for the introduction of AI voice operators in the second half of the fiscal year to achieve further efficiency gains. FY2026 impro
Slide 19: [Domestic] Bad Debt-Related Expense Ratio and Labor Cost Ratio
[Domestic] Trends in Bad Debt-Related Expense Ratio and Labor Cost Ratio • The bad debt expense ratio increased slightly due to a decrease in accounts receivable, among other factors • Personnel cost ratio improved by 0.7 percentage points year-over-year, driven by top-line growth and effective pers
Slide 20: Overseas Business
Overseas Business 20
Slide 21: [Overseas] Financial Highlights by Segment
[Overseas] Financial Highlights by Segment • Operating revenue reached record highs in all three regions; the overseas business as a whole posted higher revenue and profits • In the second fiscal quarter, the China area posted higher revenue and profit Overseas Buiness China Area Mekong Area Malay A
Slide 22: [Overseas] Highlights of Performance in China Area
[ Overseas ] Highlights of Performance in China Area • Outstanding receivables increased due to improvements in app functionality (such as the introduction of a service allowing customers to switch to installment payments) • Operating income rose 120% YoY as efforts to control bad debt-related expen
Slide 23: [Overseas] Highlights of Performance in Mekong Area
[ Overseas ] Highlights of Performance in Mekong Area • Revenue continues to rise, partly due to the positive impact of exchange rates • Costs are increasing before revenue in Vietnam and Cambodia, currently seeking a balance between top-line growth strategies and strengthening credit and collection
Slide 24: [Overseas] Highlights of Performance in Malay Area
[ Overseas ] Highlights of Performance in Malay Area • Installment sales of consumer goods(Large Motorcycles) and credit card services saw growing transaction volumes, driving revenue increases alongside expanding outstanding receivables balances • Strengthened measures such as refining credit asses
Slide 25: [Overseas] Receivables and NPL of Listed Subsidiaries
[Overseas] Balance of Receivables and NPL of Listed Subsidiaries • Hong Kong: NPL ratio and cost ratio remain stable at low levels; prudent credit management continues • Thailand: Outstanding loan balances decreased, currently intensifying collection efforts to stabilize NPL ratio and expense ratio
Slide 26: [Overseas] Priority Countries Business Overview
[Overseas] Priority Countries Business Overview • In Vietnam, efforts are underway to acquire WAON POINT members in preparation for the rollout of digital cards • In Cambodia, the credit screening system was overhauled in June to refine credit assessments through the use of external credit scores •
Slide 27: KPI Progress for the Mid-Term Management Plan (FY2026–FY2030)
KPI Progress for the Mid-Term Management Plan (FY2026–FY2030) KPI’s 2025 FY 2026 2026 2030 Unit Result KPI First Half Result FY2026 Full-Year Progress Status Goal Number of Active AEON Pay (1,000 persons) 12,080 +17,920 +2,740 15.3% 60,000 ID (Total: 30,000) (Total: 14,830） Outstanding Balance of (t
Slide 28: Key Implementation Items
Key Implementation Items AEON Financial Service Co., Ltd. 28
Slide 29: [Domestic] Expanding the customer base with AEON Pay
[Domestic] Expanding the customer base with AEON Pay • By synchronizing enhancement of AEON Pay’s appeal and embedding payment functions into AEON group apps, acquire 30 million IDs by expanding both the reasons and opportunities to use it Customer Base Expansion Plan How to acquire August 2026 Diff
Slide 30: [Domestic] Expanding Customer Value through Cross-Utilization
[Domestic] Expanding Customer Value through Cross-Utilization • Settlement amount, savings account and revolving/installment/cashing utilization ratio per customer expands with multiple utilization of our service • Large room for expansion for single service users, as cross-utilization ratio is limi
Slide 31: [Domestic] Integration of customer touchpoints
[Domestic] Promote cross-utilization & expand revenue by integration of customer touchpoints • By shifting AEON Card counter to AEON Bank and utilizing TV consultation desks, develop light- weight yet full-line nation-wide dense financial service locations Expanding service coverage through transfer
Slide 32: [Domestic] Initiatives to Expand Stock Business
[Domestic] Initiatives to Expand Stock Business • Capture diverse funding needs by focusing on advanced credit through retail, payment, and bank account data utilization Trends in the Balance of High-Yield Challenges Common Initiatives Initiatives by Product Operating Receivables (Planned) Expansion
Slide 33: [Overseas] Maximizing Financial Revenue through Retail Traffic
[Overseas] Maximizing Financial Revenue through Retail Traffic and Membership Conversion • Expanding customer base through retail traffic and membership in common points programs and retail apps • Enhancing customer LTV through cross-utilization by using payment and purchase data New Shift from prev
Slide 34: [Malaysia] Shared platform across Asia as a pilot model
[Malaysia] Shared platform across Asia as a pilot model • Where group retail, malls, finance and banking converge in Malaysia, linking customers, group companies and financial services through common ID, to build up overseas development model AEON360 Initiatives AEON Bank Malaysia Initiatives Develo
Slide 35: [Vietnam] Growth Strategy: Common Points and Pay-Later QR Payments
[Vietnam] Growth Strategy: Common Points and Pay-Later QR Payments • Built a base of over 4 million members since launching WAON POINT in October 2024. • Launch VietQR-compliant pay-later payments in FY2027 to generate revenue. FY2030 KPIs Enroll retail customers through common Common points STEP 1
Slide 36: [Cambodia] Expand into Untapped Customers through Common QR Payment App
[Cambodia] Expand into Untapped Customers through Common QR Payment App • Acquire more customers in untapped segments by using app supporting common QR payments by approaching AEON Mall visitors Expanding Customer Base Revenue Cycle through Common QR Payment App Income Distribution (Illustrative) Pr
Slide 37: Our Purpose
［Our Purpose］ AEON Financial Service Co., Ltd. 37
Slide 38: Appendix
Appendix
Slide 39: Approach to Enhancing Corporate Value
Approach to Enhancing Corporate Value • Diversify the portfolio through new products such as digital lending, alongside the expansion of account receivables • Aiming for a 10.0% ROE while improving efficiency FY30 Target KGI Tree KPI (Difference from FY25) Balance of Outstanding account receivables
Slide 40: List of KPIs Managed Under the Medium-Term Management Plan
List of KPIs Managed Under the Medium-Term Management Plan KPI for 2025 2026 2027 2028 2029 2030 (Plan) (Plan) (Plan) (Plan) Unit Result YoY (Plan) YoY Number of Active AEON (10,000 Pay ID persons) 1,208 +392 3,000 +1,792 4,000 4,700 5,500 6,000 Outstanding Balance of Current Deposit (tn yen) ３.２ ▲0
Slide 41: [Domestic] Customer Base: 41.07 million
［Domestic］ Customer Base Domestic Valid IDs 41.07 million (YoY 110%, Increase from beginning of term+1.82 million) AEON Pay members Card members ※1 No. of AEON bank accounts ※2 E-money WAON ※3 14.83 million 26.51 million 9.00 million 6.81 million (Increase of 2.74 million (Decrease of 0.02 million (
Slide 42: Cumulative Results of Overseas Listed Companies (Local Currency)
Cumulative Results of Overseas Listed Companies (Local Currency) FY 2025 FY 2026 1H Results 1H Results YoY AEON Revenue 897,143 961,352 107％ CREDIT SERVICE Profit before tax 281,327 312,046 111％ (ASIA) HKD$’000 Profit for the period 233,600 258,820 111％ AEON Revenue 10,866,646 10,325,262 95％ THANA S
Slide 43: Cumulative Results of Overseas Listed Companies (Yen conversion)
Cumulative Results of Overseas Listed Companies （Yen conversion） FY 2025 FY 2026 Exchange rates 1H Results 1H Results YoY Revenue 16.8 bn 1９.６ bn 116% AEON （JPY / HKD） CREDIT SERVICE Profit before tax 5.2 bn 6.3 bn 120% ・ FY2025Q2 ： ￥18.78 ・ FY2026Q2 ： ￥20.39 (ASIA) Profit for the period 4.3 bn 5.2
Slide 44: Transaction Volumes and Operating Receivables of Overseas Business
Transaction Volumes and Operating Receivables of Overseas Business China Area Mekong Area Malay Area Overseas Business (Hong Kong) (Thailand) (Unit ： Bn JPY） YoY YoY YoY YoY (Change) (Change) (Change) (Change) Transaction volume 152.7 117% 137.4 90% 62.8 136% 353.0 107% Credit card Operating Receiva
Slide 45: Balance Sheet Status
Balance Sheet Status FY 2026 FY 2026 (Unit: Bn JPY) 2Q Results YTD 2Q Results YTD Cash and deposits 413.0 ▲ 263.8 Deposits 5,435.8 ▲46.1 Accounts Operating Loans 1,043.7 ▲15.4 payable-trade 411.9 +19.1 Loans and bills Interest-bearing discounted for 3,018.8 +178.0 debt 1,452.0 +12.6 banking business
Slide 46: Segment Performance
Segment Performance Domestic Overseas Consol. （Unit ： Bn JPY） China Malay Total ※ Retail Solutions Total ※ Area Mekong Area Area Total ※ Operating 181.2 134.6 102.7 131.0 19.9 51.6 59.3 311.2 Revenue YoY 110％ 110％ 108％ 114％ 116％ 105％ 123％ 112％ Operating 5.9 3.0 3.3 19.1 6.3 6.4 6.3 25.2 Profit YoY 6
Slide 47: Results by Area
Results by Area Transaction Operating （Unit：Bn JPY） YoY receivables YTD volume （Before securitization） Credit card 4,181.9 102% 2,020.3 +90.9 Credit card shopping 4,003.7 102% 1,590.9 +96.9 Domestic （Of which, revolving and installment） - - 400.9 ＋5.7 Cash advance 178.1 93% 429.4 ▲5.9 Housing loan 2
Slide 48: Allowance for Doubtful Accounts and Provision for Loss on Interest Repayment
Allowance for Doubtful Accounts and Provision for Loss on Interest Repayment by Segments 【Allowance for doubtful accounts】 Domestic Overseas Consol. （Unit： Bn JPY） China Mekong Malay Retail Solutions Area Area Area Total Total Total Opening allowance for 55.3 1.6 54.2 80.３ 5.5 41.6 33.2 136.5 doubtf
Slide 49: Progress on AEON Bank's Response to the Business Improvement Order
Progress on AEON Bank’s Response to the Business Improvement Order • AEON Bank’s improvement plan is progressing without delay • Including for items where measures have been completed, the bank will continue to enhance operations, such as by introducing external services, and work to strengthen its
Slide 50: Forward-looking statements disclaimer
Statements contained in this report with respect to the Company’s management strategies, business policies and results forecasts are forward-looking statements about the future performance of the Company, which are based on the assumptions and beliefs in light of the information currently available.
Aeon Financial Service — H1 FY2026 Earnings Presentation on 6ix