Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q2 FY2026 Earnings Presentation
41 slides from Aeon Financial Service's earnings presentation, Oct 9, 2026
Slide 1: FY2026 Second Quarter IR Presentation Manuscript/Q&A
FY2026 Second Quarter IR Presentation Manuscript/Q&A Date and time : October 9, 2026（Friday） 17:00-18:00 Speakers : Tomoharu Fukayama, President and CEO Shinichiro Nishimura, Managing Executive Officer, in charge of Corporate Planning and Overseas Business Kazumasa Oshima, Executive Officer in charg
Slide 2: Agenda
• Today, we will proceed in line with the agenda outlined here. • Afterwards, CEO Fukayama will proceed to explain about our key initiatives.
Slide 3: First-half financial results summary
• I will now summarize the financial results of the first half of the current fiscal year. • Operating profit fell below the level of the same period last year due to increased costs associated with the full-scale launch of the domestic core system. Meanwhile, the progress rate against the full-year
Slide 4: Second quarter three-month results
• I will now summarize the financial results of the 3 months of the second quarter. • As planned, we began recording costs associated with our domestic core systems this quarter. Consequently, operating profit was 50% of the level seen in the same period last year. Therefore, the decline in profit f
Slide 5: Consolidated financial results for the first half
• This is the summary of our consolidated financial results for the first half of the fiscal year • I will now explain the factors behind the increase in revenue and the decrease in profit. Consolidated operating revenue stood at 112% of the previous year's level. Growth was driven by credit card an
Slide 6: Second-half measures and full-year forecasts
• While our results for the first half of the fiscal year have exceeded the plan, in the second half of the fiscal year, we will implement measures to expand our customer base and achieve our KPI’s with the focus being centered on AEON Pay. Rather than simply retaining the surplus generated in the f
Slide 7: Domestic business
• Next, I will explain about our domestic business.
Slide 8: Domestic operating profit year-on-year comparison
• This slide shows the year-on-year comparison of domestic operating profit. • Operating revenue, represented by the yellow bars, reached 110% of the previous year's level. This growth was driven by increased card revenue which resulted from a rise in installment receivables and revised commission r
Slide 9: Domestic active IDs
• Regarding our domestic customer base, the number of active IDs stands at 41.07 million, showing steady growth driven by an increase in members using the AEON Pay charge payment service.
Slide 10: Credit card and AEON Pay members
• Now I will explain about our credit card and AEON Pay mobile payment service businesses. • The number of active cardholders decreased by 20,000 from the beginning of the period, following a review of the criteria for card renewal. • Meanwhile, the number of AEON Pay members increased by 2.74 milli
Slide 11: Transaction volume
• Here is the status of transaction volume. • As shown on the left, our company’s total transaction volume, which combines shopping transaction volume and E-money, amounted to 4 trillion 945.2 billion yen. • As for AEON Pay’s transaction volume shown on the right, we have achieved significant growth
Slide 12: Domestic high-yield receivables
• This is regarding domestic high-yield receivables. • The graph on the left shows the balance prior to the securitization of receivables. Driven by the launch of our “Pay in Installments Later” service during September of 2025, the balance of installment payments increased by 10.9 billion from the
Slide 13: Housing and corporate loan balances
• The outstanding balance of housing-related loans stands at 3 trillion 886.4 billion yen, a decrease of 18.3 billion from the beginning of the period. Regarding AEON Bank’s loans for condominium investments, interest rate competition has intensified. However rather than aggressively matching compet
Slide 14: AEON Bank accounts and deposit balances
• This is regarding the number of accounts and deposit balances at AEON Bank. • The number of accounts at AEON Bank has grown to 9 million. As part of our efforts to establish the bank as customers' primary account for daily financial needs, we have actively promoted the "AEON Card Select," resultin
Slide 15: Domestic balance sheet
• This is regarding the domestic balance sheet. • In recent years, the domestic interest rate environment has changed significantly, with the policy interest rate rising to 1.25% by September 2026. Amidst this environment, regarding funding, we have successfully curbed fund outflows partly by utiliz
Slide 16: Quarterly yields on loans and receivables
• This chart shows the quarterly trends in yields on loans and receivables.. • The yield on "installment receivables and operating loans" (shown in purple) declined compared to the first quarter due to the composition of the outstanding balance. However, the impact of the revised revolving credit fe
Slide 17: AEON Bank securities portfolio
• The table on the left shows AEON Bank’s securities portfolio. • The total balance of securities (excluding those held to maturity) stood at 834.5 billion yen, an increase of 2.1 billion yen year-on- year. While reducing holdings of Japanese government bonds, we increased our positions in corporate
Slide 18: Cost structure reform
• Regarding cost structure reform, we achieved savings of 1.6 billion yen during the first half of the fiscal year, against a full- year improvement target of 2.7 billion yen. In addition to reviewing our products and services, we are working to reduce outsourcing costs, particularly in areas such a
Slide 19: Bad debt and personnel expense ratios
• The ratio of bad debt-related expenses rose slightly from the previous period, partly due to a decrease in the balance of accounts receivable. We will continue to manage this through the enhancement of our credit and collection processes. • The personnel expense ratio stood at 15.8%, an improvemen
Slide 20: Overseas business
• Now, I will explain about our overseas business.
Slide 21: Overseas operations overview
• Regarding our overseas operations, driven in part by the boost from the weak yen, operating revenue reached record highs across all regions. Overall, the overseas segment posted increases in both revenue and profit. • For the three-month period of the second quarter, operating profit stood at 82%
Slide 22: China area
• First, about the China area. • Operating revenue stood at 19.9 billion yen (116% year-on-year), and operating profit was 6.3 billion yen (120% year-on-year), marking solid performance. The balance of outstanding receivables grew, driven by the expansion of unsecured loans and enhanced app convenie
Slide 23: Mekong area
• In the Mekong area, operating revenue reached 51.6 billion yen (105% year-on-year) partly due to the positive impact of exchange rate fluctuations. • Meanwhile, operating profit stood at 6.4 billion yen, 82% of the prior year. This result was primarily driven by an increase in bad-debt related exp
Slide 24: Malay area
• In the Malay area, operating revenue reached 59.3 billion yen (123% year-on-year), and operating profit stood at 6.3 billion yen (114% year-on-year). • In Malaysia, the expansion of outstanding receivables drove revenue growth, fueled by increased transaction volumes in installment sales for large
Slide 25: Loan balances and NPL ratios of overseas subsidiaries
• This chart shows the quarterly trends in outstanding loan balances and non-performing loan (NPL) ratios for our three overseas listed subsidiaries. • In Hong Kong, both the NPL ratio and the bad debt expenses ratio remain stable at low levels. • In Thailand, we are continuing to tighten credit sta
Slide 26: Vietnam, Cambodia and AEON Bank Malaysia
• Here is an overview of the operations in Vietnam, Cambodia, and the digital bank for Malaysia, which are the countries that have been designated as priority markets under our mid-term management plan. • In Vietnam, the number of WAON point members is growing steadily, and we are working to strengt
Slide 27: Mid-term management plan KPI progress
• This is a list of the KPI progress status of the mid-term management plan. • While we have seen progress in areas such as corporate receivables and the personnel cost ratio against operating revenue, there are other metrics such as the number of active AEON Pay members and ordinary deposit balance
Slide 28: Key implementation items for the second half
• I am the president Fukayama. • I will now explain our key implementation items for the second half of the fiscal year, based on our mid-term management plan, as well as our approach to achieving medium-term growth.
Slide 29: AEON Pay initiatives
• • • • First, I will discuss our initiatives regarding AEON Pay, which serves as a key driver of our earnings growth. • We aim to create an environment where customers can naturally use AEON Pay during their everyday shopping experiences. • To achieve this, we are advancing initiatives that link tw
Slide 30: Cross-utilization of services
• • • Next, I would like to discuss increasing value for our customers through the cross-utilization of our services. • As a result of the various initiatives that we have implemented, customers who use multiple services (such as AEON Pay, the AEON Card, and AEON Bank accounts) show significantly hi
Slide 31: Physical customer touchpoints
• • Physical customer touchpoints are also crucial for driving cross- utilization. • Currently, there are 300 AEON Card counters nationwide. However, the services offered there are limited to guidance regarding credit cards and bank accounts. • In contrast, there are only 159 AEON Bank in-store bran
Slide 32: Expanding the stock business model
• • • • • • • I will now explain our initiatives to expand our stock business model, aimed at strengthening our earnings capacity. • Our customers have a wide range of financial needs, spanning everything from planned expenditures to urgent, unexpected expenses. To address this diverse spectrum of n
Slide 33: Overseas key implementation items
• • • Now I will discuss our key implementation items in our overseas business. • In our key markets of Malaysia, Vietnam, and Cambodia, our shared objective is to establish a business model that integrates retail, finance, and digital technologies. • Previously, we built our customer base by first
Slide 34: Malaysia business model
• • Malaysia is where we are working to realize, ahead of other locations, the business model we envision for our overseas business. • The AEON Group already has a presence in Malaysia through its retail, shopping mall, and various service operations, creating a foundation for an integrated living z
Slide 35: Vietnam business
• • • Now I will explain about the Vietnam business. • In 2024, we launched a group-wide loyalty point program in Vietnam, encouraging customers who visit AEON Group stores to become members. • In the roughly two years since its inception, we have built a membership base exceeding 4 million. We are
Slide 36: Cambodia business
• • Next is about the Cambodia business. • In the past we have provided financial services primarily to higher-income customers through credit cards. However, relying solely on credit cards has made it difficult to establish daily touchpoints with a broader customer base that includes those in the m
Slide 37: Summary of key implementation items
• This concludes my explanation of the key implementation items we will prioritize from the second half of the fiscal year onwards. • In the domestic market, we will leverage the AEON Group’s customer base and infrastructure to expand "AEON Pay." By using payment services as a gateway, we will facil
Slide 38: Q&A: JP Morgan Securities
【Q&A】 ■JP Morgan Securities Analyst Sato Q１. Could you provide an overview of the current credit environment and the future outlook in Malaysia, Cambodia, and Thailand? Specifically, is the incidence of loan defaults worsening among the younger demographic and lower-income groups in Malaysia? Regard
Slide 39: Q&A continued
（Tomoharu Fukayama, President and CEO） A１. Adjusting for inflation, there has been virtually no real growth, and we view our shopping transaction volume as a weakness. We are currently in the midst of a product overhaul; our existing AEON Cards lack sufficient support for contactless payments, and i
Slide 40: Q&A: Mizuho Securities
these will fall within the scope of routine maintenance. Additionally, approximately 2.0 billion yen in depreciation expenses was recorded for the second quarter. Therefore, the "underlying" operating profit for the three-month second-quarter period excluding the impact of the core system can be det
Slide 41: Q&A: Morgan Stanley MUFG Securities
■Morgan Stanley MUFG Securities Analyst Takemura Q１. Regarding the full-year outlook, what factors should be considered when comparing the second-quarter results with the projected performance for the second half of the year? I understand the one-time system-related costs will not recur from the thi
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