Aeon Financial Service Co., Ltd. · TSE:8570
Aeon Financial Service — Q1 FY2026 Earnings Presentation
32 slides from Aeon Financial Service's earnings presentation, Jul 9, 2026
Slide 1: FY2026 First Quarter IR Presentation Manuscript/Q&A
FY2026 First Quarter IR Presentation Manuscript/Q&A Date and time : July 9, 2026（Thursday） 17:00-18:00 Speakers : Shinichiro Nishimura, Managing Executive Officer, in charge of Corporate Planning and General Manager of the Corporate Planning Division Kazumasa Oshima, Executive Officer in charge of F
Slide 2: Agenda
• Today, we will proceed in line with the agenda outlined here. 2
Slide 3: First quarter consolidated financial results summary
• I will now summarize the first quarter financial results. • As shown, the consolidated results were 153.8 billion yen for operating revenue, 17.4 billion yen for operating profit, 17.5 billion yen for ordinary profit, and 8.9 billion yen for profit attributable to owners of parent.
Slide 4: Summary of consolidated financial results
• • • • This is the summary of the consolidated financial results. • During the period under review, the number of consolidated active IDs increased by 1.07 million from the beginning of the period, reaching 60.58 million. This growth in IDs contributed to increases in the outstanding balance of ope
Slide 5: Progress against earnings forecast
• Progress in the first quarter is proceeding according to plan. However, as expenses are expected to rise temporarily, including the booking of amortization costs related to the domestic core system starting in the second quarter, there is no change to the earnings forecast or dividend projections
Slide 6: Domestic business
• I will now explain our domestic business.
Slide 7: Domestic business operating profit breakdown
• • This is the slide that breaks down our operating profits and the differences from last year. • Operating revenue, represented by the yellow bars, rose to 110% of the previous year's level. This growth was driven by increased card revenue stemming from a rise in installment receivables and revise
Slide 8: Domestic customer base
• • Regarding the status of our domestic customer base, the number of valid IDs has steadily expanded to 40.30 million due to the increase in members using the AEON Pay charge payment function.
Slide 9: Credit cards and AEON Pay
• • • Now I will explain about credit cards and our code-based payment service AEON Pay. • The number of active cardholders shown on the left has decreased slightly since the end of the previous period due to a revision of card renewal criteria aimed at cost optimization. • The number of AEON Pay me
Slide 10: Transaction volume
• • • Now I will explain about our transaction volume. • As shown on the left, our in-house payment transaction volume, combining shopping transaction volume and electronic money, totaled 2,510.2 billion yen. • Regarding the AEON Pay transaction volume shown on the right, the figure reached 148.9 bi
Slide 11: Domestic high-yield receivables balance
• • • This slide is about the domestic high-yield receivables balance. • The graph on the left shows the outstanding balance prior to receivables securitization. • Although the decision to hold off on certain promotional campaigns in anticipation of the core system migration had some impact, the out
Slide 12: Housing loans and corporate lending balance
• • • The outstanding balance of housing-related loans increased by 33.2 billion yen from the beginning of the period, reaching 3,938.0 billion yen. • Transaction volume for the first quarter reached 131% of the previous year's level, driven by the narrowing of mortgage interest rate spreads resulti
Slide 13: AEON Bank accounts and deposits
• • • This is about the number of accounts and balance of deposits for AEON Bank. • Even amidst rising interest rates, we prioritize securing stable funding at low costs and are actively working to encourage customers to use our accounts as their primary accounts for daily financial needs. • To achi
Slide 14: Domestic funding
• • • Next is about domestic funding. • In recent years, the domestic interest rate environment has undergone significant change. The policy interest rate has been raised from negative territory in 2023 to 1.00% as of June 2026. • Amidst this environment, our cost of deposit funding rose by 0.12 per
Slide 15: Quarterly domestic loan and deposit yields
• • • Here are the quarterly trends in domestic loan and deposit yields. • The yield on operating loans and installment receivables, shown in purple, has risen following a revision to the fees charged for revolving credit purchases. • The “loan yield of banking business," shown in red, has declined
Slide 16: Domestic cost structure reforms
• • Now I will talk about the progress of domestic cost structure reforms. • We are advancing productivity reforms through reviews of products and services, such as cost rationalization for bank ATMs and revisions to customer benefits, as well as organizational adjustments, including the utilization
Slide 17: Cost control: bad debt and personnel expense ratios
• • • Next is regarding cost control. The trends in the bad debt- related expense ratio and the personnel expense ratio that we report on a quarterly basis are as shown. • The bad debt-related expense ratio has remained stable, while the personnel expense ratio improved by 2.6 percentage points year
Slide 18: Overseas business
• I will now talk about our overseas business.
Slide 19: Overseas operations overview
• • In our overseas operations, driven in part by the boost from the weak yen, both operating revenue and operating profit exceeded the figures from the same period last year across all regions. • Starting from the next page, I will explain the details of the profit and loss for each region.
Slide 20: China Area
• • • First is about the China Area. • Operating revenue grew by double digits in percentage to 116% of the previous year's level; amidst a gradual recovery in private consumption, initiatives such as strengthened credit card promotional activities and an expanded loan product lineup proved successf
Slide 21: Mekong Area
• • In the Mekong Area, operating revenue reached 107% of the previous year's level, partly due to a boost from exchange rate fluctuations. • In Thailand, although the outstanding balance of operating receivables declined—driven by a deterioration in consumer sentiment amidst rising prices linked to
Slide 22: Malay Area
• • • This is the situation in the Malay Area. • In Malaysia, alongside installment sales for individual motorcycles and used vehicles, credit card transaction volume expanded steadily, resulting in operating revenue reaching 125% of the figure for the same period of the previous year. • Operating p
Slide 23: Receivables and NPL ratios of overseas listed subsidiaries
• • • • This chart shows the quarterly trends in outstanding receivables and NPL ratios for our three overseas listed subsidiaries. • Amid rapid changes in the macroeconomic environment driven by factors such as conditions in various countries and the situation in the Middle East, we have strengthen
Slide 24: Digital banking in Vietnam, Cambodia and Malaysia
• • • Here is an overview of the digital banking operations in Vietnam, Cambodia, and Malaysia which are the countries designated as key overseas markets in our medium-term management plan. Starting this fiscal period, we will report quarterly on our foundational metrics, specifically member counts
Slide 25: Progress on medium-term management plan KPIs
• This is a summary of our progress on the KPI’s of our medium-term management plan. • While some indicators have had a slow start relative to full- year targets partly due to initiatives that are just getting underway, such as expanding the active user base for AEON Pay, we remain committed to achi
Slide 26: Our Purpose
[Our Purpose] Our Purpose Our purpose is to bring “finance” closer to everyone. é By committing to each and every person, we brighten up everyday lives with peace of mind and smiles. se
Slide 27: Q&A: JP Morgan Securities
【Q&A】 ■JP Morgan Securities Analyst Sato Q１. The results for the first quarter appear to show a high rate of progress. Please explain if there are any factors suggesting a potential upside, even after accounting for the expenses associated with the launch of domestic core systems from the second quar
Slide 28: Q&A continued: securities rebalancing
（Shinichiro Nishimura, Managing Executive Officer, in charge of Corporate Planning and the New Credit Card System Construction Team, and General Manager of the Corporate Planning Division） A１. We have been continuing to sell securities and rebalance our government bond holdings over the past several q
Slide 29: Q&A: personnel costs and core systems
working to improve our operational structure to lower the personnel cost ratio by boosting the productivity of existing staff, and we aim to steadily deliver results through these efforts. Q２. Regarding the domestic core systems, is there any change to the assumption that approximately 15 billion yen
Slide 30: Q&A: AEON Pay promotion
AEON Group apps and expanding promotional activities will be crucial moving forward. We also plan to increase the number of participating merchants, support local government cashless payment incentive programs, and promote the option to exchange government benefit payments for WAON POINTs. Through th
Slide 31: Q&A: core system migration and data use
Moving forward, we will enhance the benefits offered within the Group and implement measures designed to encourage customers to use AEON Pay when shopping at AEON. We remain committed to achieving our targets. Q２. Could the migration of the core system have a positive impact? （Shinichiro Nishimura, Ma
Slide 32: Q&A: SMBC Nikko Securities
■SMBC Nikko Securities Analyst Hara Q１. According to the list of creditors held by Zentoshin, a claim is held by AEON Bank. Has this claim already been provisioned for, or is it expected to impact financial results from the second quarter onwards? （Shinichiro Nishimura, Managing Executive Officer, in c
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