Aeon Financial Service Co., Ltd. · TSE:8570

Aeon Financial Service — Q3 FY2016 Earnings Presentation

14 slides from Aeon Financial Service's earnings presentation, Feb 10, 2017

  1. Slide 1: AEON Financial Service Co., Ltd.

    AEON Financial Service Co., Ltd. 1

  2. Slide 2: Consolidated Results

    Consolidated Results 1Q 2Q 3Q Change from Change from Change from Results Results Results start of FY start of FY start of FY Number of cardholders 37.73 million +0.51 38.16 million +0.94 38.61 million +1.39 Number of cardholders in domestic 26.20 million +0.32 26.44 million +0.56 26.69 million +0.8

  3. Slide 3: Consolidated Results by Area

    Consolidated Results by Area 3Q (for the 9 months) Topics ※（）:YoY （Unit：Billions of yen） ・Card shopping revenue：¥6.51bn（+2.2bn） Results YoY Change ・Cash advance revenue：¥4.73bn(+3.8bn） Ordinary income 274.5 +4% +9.5 →Active card：1.25mn（Change from start of FY +0.7mn） Balance/person ：¥311,000（ Change

  4. Slide 4: Results by Segments

    Results by Segments 3Q ( for the 9 months) Topics ※（）:YoY (Unit :Billions of yen) Results YoY Change ・Card shopping transaction volume：quarterly increased →YoY 1Q+8％、2Q+9％、3Q+12％ Ordinary income 129.0 +11% +13.2 ・Installment sales volume：¥170.6bn（+20％） Credit ・Balance of cash advance：¥426.0bn（ Chang

  5. Slide 5: Consolidated balance sheet

    Consolidated balance sheet Consolidated Results Change from Topics ※（）:Change from start of FY Results (Unit:Billions of yen) start of FY ・Balance in domestic：¥497.7bn（+78.1bn） Cash and deposits 526.5 +81.6 →Needs usage of ATM on new year holidays and cash advance Loans and bills discounted 1,750.9

  6. Slide 6: Effect of enhanced point program

    Effect of enhanced point program ■ Process of issuance and usage of AEON Card Expanding Increase Card Double the Card TrxnVolume Issuance of AEON Card Trxn Volume within Tokimeki Point AEON Group outside of AEON Group WAON POINT Reward WAON Incentive to reward （cash point card） Point more points ■ E

  7. Slide 7: Investment in system (IT)

    Investment in system (IT) ■Purpose of Investment：Integrated channels(manned store・Web・call center）and reinforce financial service ■Main Investment ：Research of new technologies, Strengthening of analysis functions, Standardization of systems(IT) 2016 2017 2018 ‘ Digitalized financial store Organize

  8. Slide 8: Forecast of Results for FY2016

    Forecast of Results for FY2016 ■ Domestic：Continual double digit growth in card shopping transaction volume Promote utilization of new card loan users and expand balance of unsecured loans ■ Overseas：Refine screening and Improve screening and collection efficiency reduce bad debt allowance Improve m

  9. Slide 9: (Reference) 3Q FY 2016 Results (Hong Kong, Thailand, Malaysia)

    (Reference) 3Q FY 2016 Results (Hong Kong, Thailand, Malaysia) FY2015 1 - 3Q FY2016 1 - 3Q Results YoY Results YoY Revenue 941,296 -2% 913,043 -3% AEON CREDIT Operating income 876,360 -1% 850,308 -3% SERVICE Profit before tax 220,548 -13% 275,650 +25% (ASIA) Profit for the period (HK$’000) attributa

  10. Slide 10: (Reference) 3Q FY 2016 Results (Hong Kong, Thailand, Malaysia)

    (Reference) 3Q FY 2016 Results (Hong Kong, Thailand, Malaysia) ■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd. (Unit:Billions of yen) FY 2015 3Q FY 2016 3Q Exchange rates: HKD 1 ・3Q 2015: ¥15.66 Results Results YoY ・3Q 2016： ¥13.89 Ordinary income 15.5 13.6 -12% Ordinary profit 3.4 3.

  11. Slide 11: Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest Received by Segment

    (Reference) Allowance for Doubtful Accounts and Allowance for Loss on Refund of Interest Received by Segment ■ Allowance for Doubtful Accounts (by Segment) (Unit : Billions of yen) Credit Banking Overseas Fee Total Allowance for doubtful accounts, beginning of period 27.5 3.2 15.0 4.2 49.4 Provision

  12. Slide 12: (Reference) FY 2016 Business Plan (Domestic)

    (Reference) FY 2016 Business Plan (Domestic) FY 2016 3Q FY 2016 Change from start Change from start Results of FY Plan of FY Number of cardholders 26.69 million +0.81 million 27.40 million +1.52 million Results YoY Plan YoY Card shopping transaction volume ¥3,357.4 billion +9.8% ¥4,430.0 billion +7.

  13. Slide 13: Our Vision: Integrate Common Functions to Reinforce Financial Service Capabilities

    (Reference) Our Vision －Integrate Common Functions to Reinforce Financial Service Capabilities － Potential Market Use of attribute (26.44 million people × ¥315,000/month × 12 months ＝ ¥ 100 trillion) Database + information Number of active members in Japan: 26.44 million AI Current transaction volum

  14. Slide 14: Forward-looking statements

    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 — Q3 FY2016 Earnings Presentation on 6ix