Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — FY2025 Earnings Presentation
52 slides from Aeon Financial Service's earnings presentation, April 2026
Slide 1: Full-year financial results briefing, fiscal year ending February 2026
• Thank you very much for taking the time to attend our full-year financial results briefing for the fiscal year ending February 2026. • M y name is Oshima, and I am an Executive Officer in charge of Finance and Accounting.
Slide 2: Agenda
• W e will proceed according to this agenda today. • First, I will explain our performance for the fiscal year ending February 2026. The second half of the agenda, the medium-term management plan, will be explained by President and CEO, Fukayama. • Please excuse the brevity of the first half of the
Slide 3: Consolidated financial results for fiscal year ended February 2026
• First, we will look at the consolidated financial results for the fiscal year ended February 2026. • Please note that we have changed the name of the segment previously referred to as “Global Business" to "Overseas Business," but this has no impact on profit or loss. • Compared to the initial figu
Slide 4: Fourth quarter consolidated financial results
• Our consolidated financial results for the fourth quarter (three-month period) are as follows.
Slide 5: Summary of consolidated financial results
• This is a summary of our consolidated financial results. • During this fiscal period, we focused on expanding our customer base, including AEON Pay in Japan. As a result, the number of consolidated active IDs increased by 3.79 million from the beginning of the period, reaching 59.51 million. • The
Slide 6: ROE and asset profitability, productivity, capital efficiency
• • • Our ROE for fiscal year 2025 is 4.5% , an improvement of 1.1 percentage points from the previous year. However, this still falls significantly short of our target of 10% , which represents an ROE level exceeding our perceived cost of capital. • The page shown details our performance for this f
Slide 7: Domestic business
• Now I will explain about our domestic business.
Slide 8: Year-on-year change in domestic operating profit
• • This slide shows the year-on-year change in domestic operating profit. • Operating revenue, represented by the yellow bars, increased by 6% compared to the previous period. This was due to increased card revenue, higher interest and dividend income from bank securities investments, and increased
Slide 9: Growth in valid IDs domestically
• • Regarding our domestic operations, as I mentioned earlier, the number of valid IDs is steadily increasing.
Slide 10: Credit cards and AEON Pay
• • • Now I will explain about our credit cards and the QR code payment service "AEON Pay." • The number of active cardholders (left) reached 26.54 million, an increase of 370,000 from the end of the previous fiscal year. • Regarding AEON Pay (right), the number of members increased by 3.92 million
Slide 11: Transaction volume
• • • Next is about the transaction volume. • As shown on the left, our in-house transaction volume, which combines shopping and electronic money, fell slightly short of our K PI of 10 trillion yen per year. • Regarding AEON Pay transaction volume, shown on the right, we have been able to steadily i
Slide 12: Domestic high-yield receivables
• • • The breakdown of domestic high-yield receivables, as discussed on the consolidated summary page, is as follows. • Although we did not reach our K PI target of +55 billion yen in outstanding receivables, the increase in shopping revolving credit and installment payment receivables resulted in a
Slide 13: AEON Bank business operations
• • • Now about the business operations of AEON Bank. • Although the pace of deposit acquisition has slowed, the balance has increased compared to the beginning of the period, maintaining stable growth. • Although it is a period of rising interest rates, we are focusing on securing stable funding at
Slide 14: Housing-related loan transactions
• • • Regarding the volume of housing-related loan transactions, the 2025 fiscal year was 82% of the previous year's figure, but the three-month period showed a recovery trend, reaching 106% of the previous year's figure. • This recovery is attributed to the narrowing of interest rate differentials
Slide 15: Domestic fundraising and investment returns
• • Regarding domestic fundraising, the performance of investment returns and the trends in deposit funding costs are as shown. • In installment accounts receivable, the yield on revolving credit and installment receivables increased compared to the third quarter due to the revision of shopping revo
Slide 16: Bad debt expense ratio and personnel expense ratio
• • • Next, regarding cost control, the trends in the bad debt expense ratio and the personnel expense ratio, which we present every quarter, are as shown.
Slide 17: Achievement status of KPIs
• • • As you can see, the achievement status of the K PI’s presented at the beginning of the period fell short, except for the locations where AEON Pay can be used. However, the results of our key initiatives, such as the accumulation of high-yield receivables and investments starting with bank depo
Slide 18: Overseas business
• Next, I will explain our overseas business.
Slide 19: Overseas operations overview
• • • In our overseas operations, operating revenue reached a record high across all regions for the full year. • In the fourth quarter, while profits decreased in the China area and the M ekong area due to increased bad debt-related expenses, profits increased in the M alay area, resulting in overa
Slide 20: China area
• • First, the China area. • Operating revenue increased by 1% compared to the previous period, despite the persistently high number of personal bankruptcies across Hong K ong and a tightening of credit lending throughout the year. • Operating profit increased due to reduced promotional expenses and
Slide 21: Mekong area
• • In the M ekong area, operating revenue increased by 7% compared to the previous period, due to the positive impact of exchange rates and the contribution of a Vietnamese finance company acquired at the end of the previous period. • On the other hand, while bad debt-related expenses increased in
Slide 22: Malay area
• • • Next is about the M alay area. • In M alaysia, in addition to individual installment sales for motorcycles and used cars, personal loans and credit cards are also expanding steadily. Operating revenue grew by 12% compared to the previous period, partly due to the positive impact of exchange ra
Slide 23: Receivables and NPL ratios of overseas listed companies
• • • • This chart shows the quarterly trends in the balance of outstanding receivables and NPL ratios for the three overseas listed companies. • Each country is strengthening its credit and collection systems by utilizing AI scoring and other technologies. • In M alaysia, the NPL ratio significantl
Slide 24: New medium-term management plan FY2026-2030
• M y name is Fukayama, President and CEO of AEON Financial Services. • I will now explain our new medium-term management plan from fiscal year 2026 to 2030.
Slide 25: Results of the previous medium-term plan
• First, I will explain the results of the previous medium-term management plan.
Slide 26: Final year results versus plan
• • In the final year, fiscal year 2025, operating revenue was 569.3 billion yen and operating profit was 60.6 billion yen, both of which fell significantly short of the initial plan.
Slide 27: Reasons for shortfall against targets
• • • • • • • • There are three main reasons why both operating revenue and operating profit fell short of established targets. • Firstly, we failed to adequately grasp the changing needs of our customers domestically, resulting in a reactive approach. Amidst the rapid advancement of cashless paymen
Slide 28: Serious incidents and underlying issues
• • • • • • • Furthermore, during the period of the previous medium-term management plan, we experienced a series of serious incidents, including delays in responding to the increased fraudulent use of AEON Cards, a business improvement order for AEON Bank, and the postponement of the financial resu
Slide 29: Summary of previous plan and priorities
• • • ‒ • ‒ • • • • • • • • • ‒ • • ‒ ‒ • • • To summarize our previous medium-term management plan, while we made progress in diversifying our portfolio, reviewing unprofitable businesses, and developing AEON Pay, we were left with challenges such as insufficient customer service, a high-cost struc
Slide 30: Basic principles of the new plan
• Now, the basic principles of the new medium-term management plan.
Slide 31: Vision for 2030 and basic policy
• Our vision for 2030 is to become a community-based global company that brings “Finance Closer to Everyone.” • As a basic policy for achieving this, we will focus on three points: ① Demonstrating profitability, ② Shifting to highly efficient management, ③ Prioritizing safety and security. • Regardi
Slide 32: Target numbers for fiscal year 2030
• • Next, regarding our target numbers: • By fiscal year 2030, we aim to achieve operating profit of 100 billion yen, ROE of 10% , and PBR of 1.0 or higher, targets that were not achieved in our previous medium-term management plan. • To achieve this, we will position fiscal years 2026 and 2027 as a
Slide 33: ROE management indicators
• • × ÷ + × + • To achieve a 10% ROE, our company will manage its operations using three indicators: “Balance of accounts receivable," “Cost ratio" (operating expenses divided by accounts receivable balance), and “Operating profitability" (operating revenue divided by accounts receivable balance). •
Slide 34: Investment plan
• • Next, regarding our investment plan: • Over the five years leading up to fiscal year 2030, we will invest a total of 250 billion yen in aggressive growth investments, primarily in digital technologies, including 110 billion yen in overseas operations, 80 billion yen in domestic operations, and 6
Slide 35: Expanding customer base through AEON Pay
• • • • • • Next I will explain about expanding the customer base through AEON Pay. • To expand AEON Pay membership, we aim to achieve 60 million members by fiscal year 2030 by combining the consolidation of users of other services such as AEON Card and AEON Bank accounts, acquisition from AEON Grou
Slide 36: Strengthening lending through data and AI
• Next, I will explain about the strengthening of our lending business through the use of data and AI. • As part of the AEON Group, we possess unique management resources: a large customer base, the ability to utilize retail data, and the stable, low- interest fundraising capabilities leveraging AEO
Slide 37: Overseas business and Malaysia
• • • • • • • ‒ • ‒ • • • ‒ • ‒ ‒ • Next, regarding our overseas business, we have designated M alaysia, Vietnam, and Cambodia as key investment countries and will concentrate our management resources there. • In M alaysia, we have established a non-bank financial institution, a digital bank, and a
Slide 38: Business expansion in Vietnam
• • • • • Next, I will discuss our business expansion in Vietnam. • The AEON Group plans to more than triple its number of stores throughout Vietnam by 2030, and our company and business will grow in line with this plan. • Utilizing the finance license we acquired last year, we will build a revenue
Slide 39: Domestic cost structure reform
• • Next is about the domestic cost structure reform. • To fundamentally improve our high-cost structure, we plan to promote cost structure reform by the end of fiscal year 2027, transform into a leaner organization, and achieve cost reductions of approximately 11 billion yen by fiscal year 2030 com
Slide 40: Robust corporate governance
• • Next, regarding the realization of robust corporate governance: • Based on what was learned from the previous medium-term management plan, we will strengthen internal controls, enhance risk management, and establish a system for proactive prevention, followed by a cycle of verification and impro
Slide 41: Personnel capital strategy
• • • • • • Next is about our personnel capital strategy. • In our new medium-term management plan, we aim to achieve "fulfillment for all," where each employee can fully utilize their abilities, and thereby realize this plan. • The foundation of our personnel capital strategy is institutional refor
Slide 42: Sustainability
• • • • • • • • • • • • • • • • • • • • • • • • • Next is about our sustainability. • For our company, sustainability is not a separate issue, but rather an integral part of our business operations. • The four material issues we prioritize and the key indicators for 2030, which were announced in our
Slide 43: Shareholder return policy
• • • Next, regarding our shareholder return policy: • Our basic capital allocation policy is to balance growth investments and shareholder returns in order to continuously improve corporate value. • In this medium-term management plan, we prioritize growth investments, steadily executing a cumulati
Slide 44: Performance forecast for fiscal year 2026
• Lastly, regarding our performance forecast for fiscal year 2026. • W e project operating revenue of 600 billion yen and operating profit of 45 billion yen. • W e will complete our growth investments over the two years until fiscal year 2027, which we have designated as the phase of strengthening o
Slide 45: Our Purpose
[Our Purpose] Our Purpose Our purpose is to bring “finance” closer to everyone. ] By committing 4 to each and every person, we brighten up everyday lives with peace of mind and smiles. q Se J
Slide 46: Q&A: Mizuho Securities
【 Q& A 】 ■M izuho Securities Analyst Sakamaki Q １ . Regarding this term's plan, please explain the factors contributing to the expected decrease in profits. In particular, please tell us the total cost, including depreciation and one-time expenses related to the operation of the new system, and the
Slide 47: Q&A: cost reduction
reduction? I would appreciate an explanation on how the reductions are planned. （ Shinichiro Nishimura, M anaging Executive Officer, in charge of Corporate Planning and the New Credit Card System Construction Team, and General M anager of the Corporate Planning Division） A ２ . The reductions are due
Slide 48: Q&A: JP Morgan Securities
■JP M organ Securities Analyst Sato Q１ . Regarding the factors contributing to the projected decrease in profits for this fiscal year. W hile I understand the increase in costs, given the growth in the top line and the full-year effect of the revolving credit rate revision, I believe there are other
Slide 49: Q&A: Mitsubishi UFJ Morgan Stanley Securities
■M itsubishi UFJ M organ Stanley Securities Analyst Takemura Q1. I am in would like to ask about the company's own payment transaction volume, outstanding receivables from individual customers, and outstanding receivables from the three overseas listed companies. W hile the company's own payment tra
Slide 50: Q&A: SBI Securities
■SBI Securities Analyst Ootsuka Q１ . Regarding the approach to extraordinary gains and losses, tax rates, and minority interests in the upcoming medium-term management plan. The plan for FY 2030 projects an operating profit of 100 billion yen and a net profit of 58 billion yen. Compared to past tren
Slide 51: Q&A: deposits and funding
stores. In the future, we plan to increase ordinary deposits, mainly for living expenses, through AEON Pay. W e have never pursued deposit balances by setting high interest rates on promotional fixed deposits, and we do not plan to do so in the future. W ith policy interest rates expected to rise, w
Slide 52: Q&A: shareholder returns
Q 2. Regarding shareholder returns. W hile you stated that you "fully recognize expectations for shareholder returns" during the third-quarter earnings announcement, the annual dividend remained unchanged at 53 yen per share. The company has set a target of 70 billion yen in cumulative shareholder r
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