Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q1 FY2025 Earnings Presentation
53 slides from Aeon Financial Service's earnings presentation, Jul 31, 2025
Slide 1: FY2025 1Q IR Presentation Material
FY2025 1Q IR Presentation Material July 31, 2025 Stock Listing: Tokyo Stock Exchange, Prime Market Code No: 8570 AEON Financial Service Co., Ltd. 1
Slide 2: Revision of the Financial Results for FY2024
Revision of the Financial Results for FY2024 • Regarding PTF, we confirmed that the allowance for doubtful accounts was understated prior to the acquisition of our stake. • We revalued PTF's assets and have revised the figures for previous years, recording a goodwill impairment loss of ¥3.8 billion.
Slide 3: Contents
目次 １ Outline of the Financial Results for the First Quarter of FY2025 ２ Priority Measures 3 Forecast of Business Performance and Dividends for FY2025 Appendix AEON Financial Service Co., Ltd. 3
Slide 4: The Highlights of the Consolidated Results
The Highlights of the Consolidated Results FY2025 Rate of Consolidated YoY Forecast progress Domestic YoY Global YoY Operating Revenue 136.5 bn １０7 ％ 81.1 bn １０8 ％ ５６.3 bn １06 ％ 570.0 bn 24 ％ Operating Profit １2.9 bn 85 ％ 3.4 bn 55 ％ ９.4 bn １07 ％ 57.0 bn ２３ ％ Ordinary profit 13.8 bn 87 ％ － ー － ー 57.
Slide 5: First Quarter Summary of Consolidated Financial Results
First Quarter Summary of Consolidated Financial Results Expanded customer base both domestically and overseas, with consolidated valid IDs reaching 56.45 million (+730,000 from the beginning of the period) Increased revenue due to increased transaction volume and trade receivables, but an increase i
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 expenses included an increase in deposit interest and a loss of 1.3 billion yen due to the rebalancing of government bonds, etc. Revenue(+) Revenue(-) Gains from Financial Other liquidation Expense(-) Expense(+) expenses Financial revenue +0.7 ＋5.
Slide 8: [Domestic] Valid ID Status
Productivity ［Domestic］ Valid ID Status （Increasing Revenue） • Valid IDs are expanding, with AEON Pay recharge payment members at the center (Diff from beginning of term : +0.63 million) （Unit: million people） 40 3６.７９million （YoY＋2.２million / Diff from beginning of term＋0.６３million） 30 0 20 2１/1Q 2
Slide 9: [Domestic] Credit card・AEON Pay
Productivity [Domestic] Credit card・AEON Pay (Revenue growth) • The number of new card members was 380,000 (92% YoY), and the number of valid IDs increased by 210,000 from the beginning of the fiscal year. • AEON Pay is expanding its use to convenience stores and other locations, and the number of m
Slide 10: [Domestic] In-house settlement transaction volume
Productivity [Domestic] In-house settlement transaction volume (Revenue growth) • The promotion of credit card benefits launched last year and the promotion of AEON Pay usage contributed to increased transaction volume In-house settlement transaction volume AEON Pay transaction volume 2,458.7 bn JPY
Slide 11: [Domestic] Building a foundation for stock income
Asset Profitability [Domestic] Building a foundation for stock income Improvement • Accumulation of high-yield receivables to build a profit base is progressing smoothly toward the end-of-period balance KPI of +55 billion yen Balance before securitization Ratio of high-yield loans and balances （afte
Slide 12: [Domestic] Banking Business
[Domestic] Banking Business • Deposit balances increased 115% YoY, driven by strong performance from high-value fixed term retirement savings accounts. • We are promoting the creation of accounts used in daily life, and acquiring ordinary deposits. AEON Bank Deposit Balance Promoting the creation of
Slide 13: [Domestic] Housing Loans
[Domestic] Housing Loans • Due to the interest rate revision in March, the interest rate difference with competitors widened, and the amount of housing loan transaction volume was 53%YoY. • From April, we started handling loans over 35 years. The number of advance applications has been higher than t
Slide 14: [Domestic] Controlling bad debt related expenses and costs
[Domestic] Controlling bad debt related expenses and Productivity costs by improving productivity (Cost control) • Bad debt related expense rate declined due to a decrease in compensation for fraudulent use • Personnel cost rate fluctuated due to securitization gains, etc., but continued to trend do
Slide 15: Global Business
Global Business AEON Financial Service Co., Ltd. 15
Slide 16: [Global] Performance Highlights by Segment
[Global] Performance Highlights by Segment • Increased revenue and profits in global business • In the Malay Area, bad debt-related expenses increased due to the reversal of bad debt-related expenses in the same period of the previous year, but business performance remained steady Global business Ch
Slide 17: [Global] China Area Performance Highlights
[Global] China Area Performance Highlights • Revenues remained flat due to strengthened screening and ongoing credit checks, but profits increased due to the decrease of expenses related to bad debts and promotional expenses Breakdown of operating profit Operating revenue difference from previous FY
Slide 18: [Global] Mekong Area Performance Highlights
[Global] Mekong Area Performance Highlights • Thana Sinsap (Thailand) saw a decrease in revenue, but revenue increased in the Mekong Area due to the expansion of the credit card business in Cambodia • Profits increased due to improvement on preventing bad debt expenses, mainly due to a decrease in r
Slide 19: [Global] Malay Area Performance Highlights
[Global] Malay Area Performance Highlights • In addition to the installment sales finance, the transaction volume and balance of personal loans increased, and revenues continued to grow by double digits. • Operating profit decreased due to bad debt related expenses resulting from the expansion of re
Slide 20: [Global] Balance of Receivables and NPL of Listed Subsidiaries
[Global] Balance of Receivables and NPL of Listed Subsidiaries • ACSA：The number of bankruptcy filings in the market overall remains high, but bad debt expense ratios remain stable due to credit tightening • AEONTS ：The NPL ratio has fallen due to the write-off of past due receivables, but the bad d
Slide 21: Strengthening of governance
Strengthening of governance AEON Financial Service Co., Ltd. 21
Slide 22: Initiatives to build a safe and secure user environment
Initiatives to build a safe and secure user environment • The number of fraudulent use incidents is decreasing, and the deterrence rate remains high due to strengthened monitoring • Strengthened security measures, including real-time detection and blocking of phishing sites using AI Strengthened sec
Slide 23: AEON Bank's progress in response to the business improvement order
AEON Bank's progress in response to the business improvement order • The improvement plan is progressing smoothly. • Including for items that have been completed, we will continue to work on improving operations by strengthening our system. Details of the business improvement order Foster a sound ri
Slide 24: Priority Measures
Priority Measures AEON Financial Service Co., Ltd. 24
Slide 25: Direction of the Vietnam business
Direction of the Vietnam business AEON Financial Service Co., Ltd. 25
Slide 26: [Global/Vietnam] Market Environment
[Global/Vietnam] Market Environment • A vibrant market with a population of over 100 million and a high proportion of young people. GDP growth is expected to continue at 6-7% per year • By 2030, the retail market is expected to double (to ¥80 trillion). Population and GDP per capita Retail market Un
Slide 27: [Global/Vietnam] Accelerating the AEON Group Expansion
［Global/Vietnam］ Accelerating the AEON`s Group Expansion • AEON Group has positioned Vietnam as a key country in its overseas strategy • In this rapidly growing market, AEON Group's business, store network, and customer base are expanding at an accelerated pace. FY202０ FY２０２５ FY２０３０ （As of May, 2025
Slide 28: [Global/Vietnam] Growing Financial Needs in the Market
［Global/Vietnam］ Growing Financial Needs in the Market • Financial markets project exponential growth as income and consumption rises • While cashless payments such as QR codes are becoming more common, the credit card (postpaid) market is still in its infancy. Consumer finance market Credit card ma
Slide 29: [Global/Vietnam] Launch of Smartphone-based Payment Business
［Global/Vietnam］ Launch of Smartphone-based Payment Business • Launch of digital payment service: Creating an environment where anyone can use highly convenient payment functions • Aiming to expand customer base to 20 million (approximately 20% of the population) and achieve the industry's top share
Slide 30: [Global/Vietnam] Expansion of the Lending Business
［Global/Vietnam］ Expansion of the Lending Business • Actively utilize digitalization and AI know-how for instant approvals, flexible repayment methods, etc. • Promote cross-selling to a growing customer base and expand revenue base Operating receivables Strengthening Expanding services such as cash
Slide 31: Domestic: Improving profitability
Domestic: Improving profitability AEON Financial Service Co., Ltd. 31
Slide 32: Establishing a System to Strengthen the Stock Business
Establishing a System to Strengthen the Stock Business • Revamping the system to improve asset profitability • Capital alliance with AND Global, a company with AI-based credit expertise, with the aim to strengthen credit competitiveness both domestically and internationally ２０2５ KPI First quarter re
Slide 33: Card Cash Advances and Unsecured Loan Balances
Card Cash Advances and Unsecured Loan Balances • The receivables balance fell by 100 billion yen due to the COVID-19 pandemic. The balance has been recovering since FY2023, but the pace of increase is slow. • We will also develop small-amount, instantaneous, and highly flexible lending products to m
Slide 34: Revolving/installment balance
Revolving/installment balance • Shopping revolving credit has increased by ¥100 billion over three years, with a projected growth of over 10% in FY2025. • Will be further strengthened by revising revolving fees (from December withdrawals) and starting “pay later in installments" (scheduled for Septe
Slide 35: Creating customer experiences that start with the digital wallet
Creating customer experiences that start with the digital wallet (smartphones) • AEON Pay has a high percentage of members in their 30’s or under, who are likely to have higher financial needs in the future. • Starting with smartphones, building a customer experience that covers everything from paym
Slide 36: Expanding the Customer Base: Combining AEON Pay and WAON
Expanding the Customer Base ＜Combining AEON Pay and WAON＞ • The “New AEON Pay” was launched, combining two payment methods: code (AEON Pay） and touch （WAON） • Expand the base by shifting from electronic money to code payments, and aim to spread daily use by expanding the affiliated store network Cod
Slide 37: Forecast of Business Performance and Dividends for FY2025
Forecast of Business Performance and Dividends for FY2025 AEON Financial Service Co., Ltd. 37
Slide 38: FY2025 Earnings Forecast, Dividend Forecast
FY2025 Earnings Forecast, Dividend Forecast （Unit ： JPY） Consolidated YoY 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 Ordinary Payout 57.0 bn 91 ％ Dividend per － ー share － ー Profit ratio Interim： ２５ P
Slide 39: Our Purpose
［Our Purpose］ AEON Financial Service Co., Ltd. 39
Slide 40: Appendix
Appendix AEON Financial Service Co., Ltd. 40
Slide 41: Revision of the financial results for fiscal year ending February 2025 (Balance Sheet)
Revision of the financial results for fiscal year ending February 2025 (Balance Sheet) • Revaluation of PTF's assets and business value from the time of acquisition Reasons for increases and decreases in assets ※Includes differences for extraordinary losses (goodwill impairment) and fixed assets (go
Slide 42: 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 43: 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 44: Consolidated Balance Sheet
Consolidated Balance Sheet （Unit ： Bn JPY） FY 202５ FY 202５ 1Q Results YTD 1Q Results YTD Cash and deposits 615.8 ▲ 198.9 Deposits 5,235.1 +28.9 Accounts Operating Loans 1,012.4 +32.5 payable-trade 470.6 +152.8 Loans and bills Interest-bearing discounted for 2,724.2 +53.8 debt 1,280.9 ▲ 28.2 banking
Slide 45: Results by Segment
Results by Segment Domestic Global Consol. （Unit ： Bn JPY） China Malay Total ※ Retail Solutions Total ※ Area Mekong Area Area Total ※ Operating ８１.1 59.8 ４6.9 ５６.３ ８.４ ２４.３ ２３.５ １3６.5 Revenue YoY 10８％ 123％ 101％ 1０６％ ９９％ 10５％ 1１０％ 1０７％ Operating 3.4 ▲0.7 ４.７ ９.4 ２.４ ４.0 ２.８ 12.9 Profit YoY 55％ -％ ２０８
Slide 46: Results by Area
Results by Area Transaction Operating （Unit：Bn JPY） YoY receivables YTD volume （Before securitization） Credit card ２,０５７.５ 105% １,940.8 +80.4 credit card shopping １,９５４.１ 106% 1,501.5 +68.9 Domestic （of which, revolving and installment） - - 371.0 ＋9.5 cash advance 103.4 1０1% 439.3 +11.4 Housing loan
Slide 47: Cumulative Results of Overseas Listed Companies (Local Currency)
Cumulative Results of Overseas Listed Companies (Local Currency) FY 2024 FY 2025 1Q Results 1Q Results YoY AEON Revenue 426,547 442,180 １04% CREDIT SERVICE Profit before tax 99,351 131,965 １33% (ASIA) HK$’000 Profit for the period 83,255 109,325 １31% AEON Revenue 5,507,210 5,392,925 98% THANA SINSAP
Slide 48: Cumulative Results of Overseas Listed Companies (Yen conversion)
Cumulative Results of Overseas Listed Companies （Yen conversion） FY 202４ FY 202５ Exchange rates 1Q Results 1Q Results YoY Revenue ８.３ bn ８.３ bn 99% AEON （JPY / HKD） CREDIT Profit before tax １.９ bn 2.4 bn 127% ・ FY202４Q1 ： ¥19.67 SERVICE ・ FY2025Q1 ： ¥18.80 (ASIA) Profit for the period １.６ bn 2.0 bn
Slide 49: 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 ６３.２ ９８% 77.0 85% 22.2 128% 162.4 94% Credit card Operating Receivables 10０
Slide 50: 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 51: KPI for FY2025
KPI for FY2025 • Aiming to achieve sustainable improvement in ROE through increased asset profitability and productivity resulting from the expansion of the AEON Living Zone KPI for domestic Policy Indicator Target for 2025 “AEON Living Zone” expansion Locations where AEON Pay can +1 million to real
Slide 52: [Global] Environment by area
[Global] Environment by area • In Malaysia, domestic demand remains strong and unemployment rate falls even after increase in minimum wage • Hong Kong continues to see high personal bankruptcy filings, while Thailand lowers its full-year growth forecast Malay Area （Malaysia） Changes in real GDP grow
Slide 53: 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 — Q1 FY2025 Earnings Presentation on 6ix