Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q2 FY2025 Earnings Presentation
50 slides from Aeon Financial Service's earnings presentation, Oct 9, 2025
Slide 1: FY2025 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. FY2025 2Q IR Presentation Material October 9, 2025 Stock Listing: Tokyo Stock Exch
Slide 2: Contents
目次 １ Outline of the Financial Results for the Six Months Ended August 31, 2025 ２ Priority Measures 3 Forecast of Business Performance and Dividends for FY2025 Appendix AEON Financial Service Co., Ltd. 2
Slide 3: The Highlights of the Consolidated Results
The Highlights of the Consolidated Results FY2025 Rate of Consolidated YoY Forecast progress Domestic YoY Global YoY Operating ２7８.１ bn １0９ ％ 16５.３ bn １1１ ％ 114.7 bn １06 ％ 570.0 bn 49 ％ revenue Operating 28.3 bn 104 ％ 9.5 bn 100 ％ 18.7 bn １07 ％ 57.0 bn 50 ％ profit Ordinary 29.1 bn 108 ％ － ー － ー 57.0
Slide 4: Highlights of the Consolidated Results 2Q Accounting Period (3 months)
The Highlights of the Consolidated Results 2Q Accounting Period (3 months) Consolidated YoY Domestic YoY Global YoY Operating 14１.６ bn １1１ ％ 8４.２ bn １1５ ％ ５8.３ bn １06 ％ revenue Operating １5.3 bn １29 ％ 6.0 bn 192 ％ 9.3 bn 106 ％ profit Ordinary １5.3 bn 138 ％ － ー － ー profit Profit attributable to owner
Slide 5: Summary of First Half Consolidated Financial Results
Summary of First Half Consolidated Financial Results Expanding smartphone customer base both domestically and internationally, the number of consolidated valid IDs reached 57.24 million (+1.52 million from the beginning of the fiscal year). In addition to growth in transaction volume and operating r
Slide 6: Domestic Business
Domestic Business AEON Financial Service Co., Ltd. 6
Slide 7: [Domestic] Breakdown of Operating Profit
[Domestic] Breakdown of Operating Profit • Financial revenues in the banking business increased, while operating profits remained flat due to increases in deposit interest and general administrative expenses. Unit ： bn Yen Financial Other expenses Increase in Decrease in revenue revenue revenue ＋９.１
Slide 8: [Domestic] Valid ID Status
Productivity ［Domestic］ Valid ID Status （Increasing revenue） • Increase in valid IDs, mainly among AEON Pay code payment users who use charge payments (increase of +1.33 million from the beginning of the period) （million） 40 37.49million （YoY＋2.35million / Increase from beginning of term ＋1.3３millio
Slide 9: [Domestic] Customer base <AEON Card, AEON Pay>
Productivity ［Domestic］ Customer base ＜AEON Card、AEON Pay＞ （Increasing revenue） • The number of new cardholders increased by 0.36 million (96% YoY), and the number of active cardholders increased by 0.31 from the beginning of the fiscal year. • AEON Pay's acceptance locations, including convenience
Slide 10: [Domestic] In-house Transaction Volume
Productivity [Domestic] In-house Transaction Volume （Increasing revenue） • Transaction volume increased due to the spread of AEON Group benefits and the promotion of AEON Pay usage In-house transaction volume AEON Pay transaction volume ４,９２５.３billion 216.0billion （billion） （YoY 104%） （billion） E-mo
Slide 11: [Domestic] Status of high-yield loans
Improvement of ［Domestic］ Status of high-yield loans asset profitability • High-yield receivables ratio （after liquidation） declined due to the liquidation of receivables at the end of the previous fiscal year, but has recovered by +0.2 points from the beginning of the fiscal year. Balance before se
Slide 12: [Domestic] Bank Deposits
[Domestic] Bank Deposits • Deposit balances grew steadily, increase of 303.7bn from the beginning of the term • Promoting accounts for everyday use （MyStage ratio QoQ＋0.2pt）, acquiring regular deposit accounts AEON Bank Deposit Balance 5,５05.3bn Promoting accounts for everyday use （Increase from beg
Slide 13: [Domestic] Housing Loans
[Domestic] Housing Loans • The interest rate differential with competitors widened following the interest rate revision in March. Housing loan volume increased 67% YoY. • Started offering long-term loans of over 35 years in April. Increased pre-application numbers due to strengthened online sales pr
Slide 14: [Domestic] Controlling expenses through bad debt-related expenses and productivity improvements
［Domestic］ Controlling expenses through bad debt-related Productivity （Cost control） expenses and productivity improvements • The ratio of bad debt expenses to the operating receivables balance remains low and stable. • To reduce labor costs, the Company will continue to work on improving productivi
Slide 15: Global Business
Global Business AEON Financial Service Co., Ltd. 15
Slide 16: [Global] Performance Highlights by Segment
[Global] Performance Highlights by Segment • The global business as a whole achieved increased revenue and profits for both the cumulative and accounting periods. • Operating profits for the Malay area turned to increase in the second quarter Global business China area Mekong area Malay area Interim
Slide 17: [Global] China Area Performance Highlights
[Global] China Area Performance Highlights • Although revenue remained flat due to strengthened screening and ongoing credit screening, profits increased due to cost reductions in bad debt-related expenses and sales promotion expenses Breakdown of operating profit Operating revenue difference from p
Slide 18: [Global] Mekong Area Performance Highlights
[Global] Mekong Area Performance Highlights • Thanasinsap (Thailand) saw a decline in revenue, but the Mekong area saw an increase in revenue due to the consolidation of PTF (+1 billion). • Despite the worsening macro environment, tighter credit standards led to improvement of bad debt-related expen
Slide 19: [Global] Malay Area Performance Highlights
[Global] Malay Area Performance Highlights • Double-digit revenue growth continues, driven by increased transaction volume and balances for installment sales of medium- and large-sized motorcycles. • Operating profit declined due to increased bad debt-related expenses resulting from an expansion in
Slide 20: [Global] Control of Credit in Malaysia
[Global] Control of Credit in Malaysia • Will balance receivables across multiple products and build a receivables portfolio that is resilient to changes in the external environment. • Through credit control based on collection status, will expand profits while stabilizing bad debt-related expenses.
Slide 21: [Global] Balance of Receivables and NPL of Listed Subsidiaries
[Global] Balance of Receivables and NPL of Listed Subsidiaries • ACSA：Although the number of bankruptcy filings across the market remains high, credit tightening and other factors have kept the bad debt expense ratio stable. • AEONTS ：Although the bad debt expense ratio has increased due to worsenin
Slide 22: Priority Measures
Priority Measures AEON Financial Service Co., Ltd. 22
Slide 23: Progress in Review of the Business Portfolio
Progress in Review of the Business Portfolio AEON Financial Service Co., Ltd. 23
Slide 24: [Review of the business portfolio] Efforts so far
[Review of the business portfolio] Efforts so far • Accelerating the review of our domestic and international business portfolio to achieve further growth • 【Malaysia】 Establishing a new data marketing company that integrates retail with shared ID and AI ～FY2020 FY２０２１～FY202５ FY2026～ Expansion phase
Slide 25: [Global] Strengthening new businesses through digital utilization
[Global］ Strengthening new businesses through digital utilization • Established a joint venture with AEON Malaysia on September 17th, expanded external revenue through cross-selling and marketing • Will further deepen the integration of retail customer base with the knowledge and data of the financi
Slide 26: [Global] Efforts in each country
［Global］ Efforts in each country • Vietnam: Transfer of installment payment business to PTF completed(October), strengthening approach to new customers • AEON Bank (Malaysia) launched new business services Vietnam Malaysia Cambodia Began individual Increase in trade installments Promote cross-sellin
Slide 27: Improving Profitability
Improving Profitability AEON Financial Service Co., Ltd. 27
Slide 28: [Domestic] Expanding AEON Pay base
［Domestic］ Expanding AEON Pay base • To expand market share, will strengthen efforts to expand both membership base and the number of locations that accept payments. • FPM※ Will also strengthen participation in cashless rebate programs by providing solutions to local governments. ※FPM: Felica Pocket
Slide 29: [Domestic] Increase in revolving and installment balances
［Domestic］ Increase in revolving and installment balances • Steady growth in users and balances due to continued measures to improve convenience, including expanding features and reviewing user flow. • From September 11th : later installment payment feature launched, further review of revolving fee
Slide 30: [Global] Strengthening credit and collection capabilities through AI and digital technology
［Global］ Strengthening credit and collection capabilities through the use of AI and digital technology • Progress in efforts to automate and enhance operations using AI and digital technology. • PoC demonstrates effectiveness in improving credit accuracy and the productivity of debt collection syste
Slide 31: Strengthening of Governance
Strengthening of Governance AEON Financial Service Co., Ltd. 31
Slide 32: Strengthening subsidiary management systems
Strengthening subsidiary management systems • Issues such as the business improvement order issued to AEON Bank last year and improper accounting practices prior to the acquisition of subsidiary shares became apparent. • Will review subsidiary management system and strengthen governance. • Strengthe
Slide 33: AEON Bank's progress in response to the business improvement order
AEON Bank's progress in response to the business improvement order • AEON Bank’s improvement plan is progressing smoothly • Including for items for which response has been completed, will continue to work to enhance operations, such as by introducing external services, and work to strengthen the Com
Slide 34: Earnings Forecast, Dividend Forecast
Earnings Forecast, Dividend Forecast AEON Financial Service Co., Ltd. 34
Slide 35: FY2025 Earnings Forecast, Dividend Forecast
FY2025 Earnings Forecast, Dividend Forecast Consolidate YoY d Domestic YoY Global YoY Operating ５70.0 bn １０7 ％ 330.0 bn １０5 ％ 240.0 bn １０8 ％ revenue Operating 57.0 bn ９３ ％ 1９.0 bn ８5 ％ ３９.０ bn １０1 ％ profit Payout Ordinary Dividend per share 57.0 bn 91 ％ － ー － ratioー profit Interim： ２５ Profit attribu
Slide 36: [Our Purpose]
［Our Purpose］ AEON Financial Service Co., Ltd. 36
Slide 37: Appendix
Appendix AEON Financial Service Co., Ltd. 37
Slide 38: Approach to ROE Improvement
Approach to ROE Improvement 【Repost】 ROE Return on Operating Existing Improve Assets Number of (%) Receivables high-yield bond ment valid IDs + × Operating Revenue / Outstanding Receivables New Products Utilization × +α rate × Fee Amount Productivity used for (%) Revenue each product Net Income / Op
Slide 39: Progress of KPI's for FY2025
Progress of KPI’s for FY2025 • Aiming to achieve sustainable improvement in ROE through increased asset profitability and productivity resulting from the expansion of the AEON Living Zone Domestic KPI’s Policy Progr Indicator Goal for FY2025 Interim results ess “AEON Living Zone” Locations where exp
Slide 40: Domestic customer base
Domestic customer base No. of valid domestic ID’s 37.49million （YoY＋2.35million、Increase from beginning of term＋1.33million） AEON Pay members Card members ※1 No. of AEON bank accounts E-money WAON ※2 ９.４８million 26.47million ８.８３million ５.８１million Increase from Increase from Increase from Increase
Slide 41: [Domestic] Debt balance per person
［Domestic］ Debt balance per person Shopping revolving and installment receivables Cash advance receivables （Thousand JPY） （Thousand JPY） 400.0 400.0 362 362 363 354 356 359 346 349 335 338 342 326 327 331 300.0 282 300.0 267 270 277 256 247 233 237 225 216 215 221 207 209 200.0 200.0 100.0 100.0 0.0
Slide 42: Impact of partial changes to transactions in the domestic segment
Impact of partial changes to transactions in the domestic segment • Due to the acquisition of the WAON Value Issuer business and a partial review of internal transactions, there has been a partial change in the accounting of revenues and expenses between AEON Bank (retail) and AEON Financial (soluti
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet FY 202５ FY 202５ (Unit: Bn JPY) 2Q Results YTD 2Q Results YTD Cash and deposits 769.0 ▲ 45.6 Deposits 5,513.8 +307.5 Accounts Operating Loans 1,011.6 +31.6 payable-trade 496.1 +178.3 Loans and bills Interest-bearing discounted for 2,700.8 +30.4 debt 1,315.4 +6.2 banking bus
Slide 44: Results by Segment
Results by Segment Domestic Global Consol. （Unit ： Bn JPY） China Malay Total ※ Retail Solutions Total ※ Area Mekong Area Area Total ※ Operating 165.3 122.5 95.3 114.7 17.1 49.2 48.2 278.1 Revenue YoY 111％ 128％ 103％ 1０６％ ９９％ 103％ 1１1％ 1０9％ Operating 9.5 4.7 6.4 18.7 5.2 7.9 5.5 28.3 Profit YoY 100％ 6
Slide 45: Results by Area
Results by Area Transaction Operating （Unit：Bn JPY） YoY receivables YTD volume （Before securitization） Credit card 4,099.1 105% １,987.9 +127.5 credit card shopping 3,９06.5 105% 1,552.8 +120.3 Domestic （of which, revolving and installment） - - 378.9 ＋17.4 cash advance 192.5 1０2% 435.1 +7.2 Housing lo
Slide 46: Cumulative Results of Overseas Listed Companies (Local Currency)
Cumulative Results of Overseas Listed Companies (Local Currency) FY 2024 FY 2025 2Q Results 2Q Results YoY AEON Revenue 860,321 897,143 １04% CREDIT SERVICE Profit before tax 203,211 281,327 138% (ASIA) HK$’000 Profit for the period 170,361 233,600 137% AEON Revenue 11,221,442 10,866,646 97% THANA SI
Slide 47: Cumulative Results of Overseas Listed Companies (Yen conversion)
Cumulative Results of Overseas Listed Companies （Yen conversion） FY 202４ FY 202５ Exchange rates 2Q Results 2Q Results YoY Revenue 16.8 bn 16.8 bn 100% AEON （JPY / HKD） CREDIT Profit before tax 3.９ bn 5.2 bn 132% ・ FY202４Q2 ： ¥19.63 SERVICE ・ FY2025Q2 ： ¥18.78 (ASIA) Profit for the period 3.3 bn 4.3
Slide 48: Transaction Volumes and Operating Receivables of Global Business
Transaction Volumes and Operating Receivables of Global Business China Area Mekong Area Malay Area Global Business (Hong Kong) (Thailand) (Unit ： Bn JPY） YoY YoY YoY YoY (Change) (Change) (Change) (Change) Transaction volume 130.6 102% 153.1 82% 46.1 126% 330.0 94% Credit card Operating Receivables
Slide 49: Allowance for Doubtful Accounts and Provision for Loss on Interest Repayment by Segments
Allowance for Doubtful Accounts and Provision for Loss on Interest Repayment by Segments 【Allowance for doubtful accounts】 Domestic Global Consol. （Unit： Bn JPY） China Mekong Malay Retail Solutions Area Area Area Total Total Total Opening allowance for ５7.2 1.7 55.9 66.3 5.0 32.9 28.3 124.4 doubtful
Slide 50: 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 — Q2 FY2025 Earnings Presentation on 6ix