This is an abridged translation of the original Japanese document and is provided for informational purposes only. If there are any discrepancies between this document and the original, the original Japanese document prevails.
FY2025
IR Presentation Material
April 8, 2026
AEON Financial Service Co., Ltd.
1
Stock Listing: Tokyo Stock Exchange, Prime Market Code No: 8570
目次
１ Outline of Financial Reports for FY2025
FY２０２６－２０３０
２ Medium-term Management Plan
AEON Financial Service Co., Ltd. 2
Appendix
The Highlights of the Consolidated Results
FY2025
Forecast
Rate of
achievement
Consolidated YoY | Domestic YoY | Overseas YoY | |
Operating
revenue ¥569.3 bn 107% ¥331.6 bn 106% ¥240.4 bn 108% ¥570.0 bn 100%
Operating
profit ¥60.6 bn 99% ¥18.5 bn 83% ¥41.8 bn 108% ¥57.0 bn 106%
Ordinary
profit ¥60.6 bn 97% － － － － ¥57.0 bn 106%
Profit attributable to owners of parent
¥21.0 bn 135% － － － － ¥21.0 bn 100%
The Highlights of Consolidated Results 4Q Accounting Period(3 months)
Consolidated YoY | Domestic YoY | Overseas YoY | |
Operating
revenue ¥147.8 bn 102% ¥83.2 bn 96% ¥65.2 bn 112%
Operating
profit ¥18.9 bn 80% ¥4.9 bn 50% ¥13.9 bn 104%
Ordinary
profit ¥18.4 bn 78% － － － －
Profit attributable to owners of parent
¥6.6 bn 115% － － － -
Summary of FY2025 Consolidated Financial Results
Number of valid IDs reached 59.51 million (an increase of 3.79 million from the beginning of the term), contributing to the expansion of transaction volume and securitized receivables.
Operating profit remained at the same level as the previous year due to the absence of securitization gains and
increased procurement costs, but net profit increased due to a reduction in one-time expenses.
Improvement of asset profitability・Expanding the balance of high-yield receivables※1 to build a revenue base that does not rely on securitization gains
Domestic: ¥788.1 bn (YoY 109%) Overseas: ¥1,210.4 bn (YoY 118%)
Improved profitability・While revenue decreased after the transfer of AEON Allianz Life Insurance Co., Ltd., fees and commissions increased due to increased financial revenue resulting from changes in the domestic interest rate environment and
E-money/points businesses, both domestically and overseas.
Cost control・Increased financial expenses due to the expansion of domestic deposits
・Suppression of increases in bad debt related expenses and personnel expenses by improving credit assessment and collection accuracy through the use of AI, etc.
６０.６
bn
YoY99％
Operating Expenses YoY 107%
(+¥36.9 bn)
Unit: Bn JPY
Revenues Expenses
６１.４
bn
Installment
Financing
revenue
+10.4
Financial revenue
+22.0
Other revenue
▲8.2
Financial
expenses
+22.2
Bad debt related expenses
Other expenses
finance revenue
(Comprehensive
/Individual)
+11.8
＋３.5
＋11.1
Operating Revenue YoY 107% (+¥36.1 bn)
２１.０
bn
YoY１２５％
2024 Operating profit 20２5 Operating profit 20２5 Net income
AEON Financial Service Co., Ltd.
*High-yield receivables: Domestic revolving/installment payments, cash advances, unsecured loans, and receivables from overseas 5
operations. Receivable balances reflect post-securitization figures.
[ROE Improvement] Progress of Initiatives for FY2025
Building a growth foundation, starting with acquiring AEON Pay members domestically, is progressing steadily.
ROE is 4.5％（YoY＋1.1ｐｔ）. While this represents a recovery from the previous period, it is still significantly behind the target level, and the goal is to achieve it within the medium-term corporate plan period.
Plans Initiatives for FY2025
No. of valid ID’s 59.51 million （＋3.79 million）
・Strengthening the customer base centered on smartphones (wallets), improving UI/UX to increase usage rates and promote cross-selling.
・Domestic：Expanding the number of 「AEON Pay」 charge payment members
・Overseas：Launching finance business in Vietnam, launching business-to-business services at a digital bank in Malaysia, etc., to expand the customer base to new locations.
High-yield receivables balance Consolidated 1,998.4bn
（+２４８.８bn）、Domestic balance ratio 17.8％
・Domestic：Installment payment balances increase due to new feature release, revision of revolving credit interest rates
・Overseas：In Malaysia, accounts receivable balance increased by double digits in percentage,, mainly due to installment payments for mid-sized and large motorcycles, as well as used cars.
10.1% （+0.2pt）
FY2025
Increasing balance・ Yield improvement
Productivity
(%)
Capital efficiency
Financial leverage
Operating
revenue
/ accounts receivable
×
3.7%（+0.8pt）
Net income /
Operating revenue
×
Equity multiplier12.0
（+0.2pt)
ROE
improvement
Securitized receivables
Asset profitability
(%)
Valid ID’s
×
×
Amount spent for each product
Usage rate
Achieving economies of scale through expansion of the “AEON Living
Zone”
FY2025
4.5%
（+１.1pt）
Fee revenue
Maintaining financial leverage
Growth investments and
shareholder returns
Expansion of sales volume for each product
Credit card transaction volume Consolidated 8,354.2bn(+4.5%) ・In addition to settlements in each country of operation, expanding the volume of fee-based businesses, such as insurance agency services.
|
Consolidated operating profit margin 10.7％（▲0.9pt）、Domestic 5.6％（▲1.5pt） 、 Overseas 17.4％（+0.0pt） ・Domestic：Strengthening efforts to reduce the rate of personnel expenses through the use of AI and reviewing cost structures ・Overseas: Progress in the use of AI and digital technologies, including AI credit scoring |
Equity multiplier 17.4（+0.6pt） ・Continue to review business portfolio and reallocate resources to core and growth areas. |
Goal
10.０%
or higher
Operating
expenses
Improved cost
efficiency
Securitized receivables/ shareholder equity
AEON Financial Service Co., Ltd.
※（）Numbers indicate comparison to previous period 6
AEON Financial Service Co., Ltd.
7
Domestic Business
[Domestic] Breakdown of operating profit for FY2025 and differences from last year
While credit card revenue and financial revenue increased, profits decreased due to the absence of gains from the securitization of revolving credit receivables implemented last year (-9.9 bn).
Revenue (+)
Unit ： bn JPY
[Operating expenses]
・Financial expenses
＋19.3bn
（Deposit interest＋11.9bn、Rebalancing of government bonds ＋４.0bn、
Interest rate swaps ＋１.9bn）
・Sales promotion expenses ▲0.4bn （Excluding impact in
changes of calculation method ※ +3.4bn）
・General and administrative expenses ＋18.2bn
（Excluding impact in changes of calculation method ※ ＋14.3bn）
（Payment fees ＋5.0bn、System costs ＋4.8bn、Goodwill＋0.９bn）
Expenses (+)
Revenue (-) Expenses (-)
Other revenue
+８.4
Financial expenses
＋１９.３
2２.２bn
Credit card revenue
＋７.８
Financial revenue
+２１.９
Securitization revenue
▲１０.0
AEON
Allianz Life Insurance impact (revenue)
▲９.７
AEON
Allianz Life Insurance impact (expenses)
▲１２.３
Sales promotion expenses
▲0.４
Bad debt related expenses
▲２.５
General and administrative expenses, etc.
＋1８.2
１8.5bn
Operating revenue
＋１8.5bn
Operating expenses
＋２2.2bn
20２4 20２5
[Operating revenue]
・Credit card revenue ＋７.８bn
（Credit card business ＋６.０bn、Cash advance business＋1.８bn）
・Financial revenue
＋２１.９bn
（Interest and dividends +１２.４bn、Loan interest +５.３bn、
Bank of Japan account interest ＋1.7bn、Sales on securities +1.0bn）
・Other revenue
＋８.4bn
（Fees and commissions +6.7bn）
Main factors
AEON Financial Service Co., Ltd.
※Starting this period, some sales promotion expenses have been reclassified as general and administrative expenses 8
Productivity
（Increasing revenue）
［Domestic］ Valid ID Status
Increase in number of valid IDs, mainly among members who use the "AEON Pay" code payment service.
（million）
40
39.25million（YoY10９% / ＋３.０９million from
beginning of term）
30
20
0
202１
2022 2023 2024
2025
AEON Financial Service Co., Ltd.
*Valid ID: Number of customers using our services such as AEON Card, AEON Pay, AEON Bank accounts
* Members with duplicate IDs are consolidated for counting method 9
Productivity
（Increasing revenue）
[Domestic] Customer BaseNumber of active card members increased by 0.37 million from the beginning of the term.
AEON Pay has expanded both its membership and the number of locations where it can be used, and
the number of locations where it can be used has met its KPI.
KPI：
＋１.００
million
（１１２％）
Number of valid card holders, card-use rate
AEON Pay ID registered members, utilization rate, and number of available locations
（million)
27
26.5４million
70.0%
（million）
４.１５million（＋１.１１ million
from beginning of term）
（＋0.３７million from beginning of term）
26 68.0%
14
Number of places available for use
３.０３
million
3.14
million
25.0%
1２.08million
(＋３.９２million from beginning of term）
66.４％ 10
(YoY▲0.４pt)
21.0%
25 66.0%
１９.３％
(YoY+０.６pt)
24
0
2４/4Q 25/１Q ２Q ３Q
6 0 %
4.0
４Q
0
6
24/4Q 25/1Q 2Q
0 %
17.0
3Q 4Q
Productivity
（Increasing revenue）
[Domestic] In-House Payment Transaction Volume
Amidst a continued focus on saving money, the company fell just short of its own payment transaction volume KPI (10 trillion JPY).
AEON Pay is steadily expanding as it promotes usage both within and outside the AEON Group.
（bn JPY）
12,000
E-money transaction volume
Credit card
9,870.7 billionKPI：10 trillion
（99％）
（YoY 103%）
AEON Pay transaction volume（bn JPY）
600 AEON Pay charge payment
AEON Pay credit
494.4
billion
8,000
transaction volume
E-money 2,004.1 billion (YoY ９8%)
450
payment
（YoY 154%）
Charge
payments
４6.6 billion
(YoY ２5４%)
4,000
Credit card shopping 7,866.6 billion
(YoY 105%)
300
150
Credit card payments
447.7 billion
(YoY 148%)
0
2021
2022
2023
2024
2025
0
２０23 ２０24 ２０25
Improvement of asset profitability
［Domestic］ Status of high-yield receivables balance
While cumulative growth fell short of the KPI, the expansion of revolving credit and installment loans led to a record-high balance of high-yield receivables.
The proportion of high-yield receivables in total operating receivables also increased by 1.3 percentage points YOY, contributing to improved asset profitability.
Balance before securitization of receivables
883.8 bn
High-yield receivables ratio and balance trends
（After securitization）
Revolving/Installment
(Increase from beginning
*High-yield receivables: Revolving/installment payments, cash
（bn JPY）
1,000
Balance
Cash advance/unsecured loan balance
of term +42.0 bn / YoY 105%)
advances, unsecured loans
Total domestic operating receivables
84３.９bn
KPI：＋55.0bn
（７６％）
Shopping revolving
Increase from
4,212.5bn
4,396.4bn
4,4４０.8bn
750
500
beginning of term
+12.1bn /YoY 104%
Installment payment Increase from beginning of term
+21.4bn /YoY 150%
710.2bn
High-yield receivables
788.1bn
（Increase from beginning of term
+62.7bn/ YoY109%）
725.2bn
250
Cash advances Increase from beginning of term
+7.4bn/YoY 102%
Unsecured Loans Increase from beginning of term
+0.9bn/YoY 102%
16.9%
16.5%
Ratio
17.7%
(+1.2ｐt)
0
20１９
20２０
2021 2022
2023
2024 2025
2023 2024 2025
[Domestic] Bank Deposits
Although the pace of deposit acquisition has slowed, the account maintains stable growth, with a difference of +262.5 billion yen from the beginning of the period and a YoY increase of 105%.
The account is being promoted as a lifestyle account by consolidating daily transactions such as salary receipts and payments.
AEON Bank Deposit Balance
（bn JPY）
6,000
5,4６４.１bn（Increase from beginning of
term ＋２６２.５bn、YoY １05％）
Promoting accounts for everyday use
“AEON Bank My Stage ※1 ” Rankings※２Composition Ratio
KPI：＋500.0bn
（５3％）
100%
２５.4％
（YoY ＋0.9pt)
4,500
50%
3,000
0%
23/4Q 24/4Q 25/4Q
※2 Stage Composition Ratio AEON Bank Gold Stage + Platinum Stage Composition Ratio
※1 AEON Bank My Stage
Preferential treatment system based on transaction details
*The special interest rate offer for
ordinary savings accounts ended as of February 28, 2026 (Saturday).
Gold Stage
Platinum
Stage
①Credit and WAON usage history
②Housing loans/Unsecured Loans
Bronze
Stage
Silver
Stage
③Salary/Pension Account etc...
1,500
0
2021
2022
2023
2024 2025
[Domestic] Housing-related Loans
Housing loan volume gradually recovering with each quarter. （Compared to previous year １Q：５3%、2Q：83%、
3Q：１００%、4Q：106%)
Expansion of long-term loans over 35 years which started in April, as well as a rise in the proportion of borrowers 39 years old and younger.
Housing loan volume（bn JPY）
600
Ratio of over 35-year loans and borrowers aged39 and under to total mortgage volume*35 years and under Over 35 years 39 years old and younger
39 years old
450
300
150
456.2bn（YoY 82％）
６%
９４%
56%
２２%
７８%
60%
３０%
７０%
63%
Over 35 years
37%
３５ years and under
63%
and younger
63%
0
２０2１
2022
2023
2024
2025
25/1Q 25/2Q 25/3Q 25/4Q
*Residential mortgage
Productivity
[Domestic] Funding through deposits and investment returns
Leveraging AEON Bank's low-cost funding capabilities to expand high-yield assets and strengthen profitability
Investment yields
Trends in Policy Interest Rates and Deposit Funding Costs
Securities 1.0tr
YoY＋3２1.８bn
（）Indicates YoY
change
Net assets 0.2tr
Other liabilities
1.3tr
Cash deposit
０.6tr
Other assets 0.8tr
Average deposit
interest rate *1
0.38%
(YoY+0.16ｐｔ)
Deposits
5.4tr
YoY+264.0bn
Accounts receivable
installment １.1tr
YoY▲132.5bn
Loans ３.3tr
YoY＋177.6bn
Average yield*1
Housing-related loans *2
1.01%（+0.23pt）
Cash advance
14.76%（+0.０１pt）
Unsecured loan
8.93%（+0.07pt)
Revolving/Installment
1６.２９%(+1.３７pt)
Securities from banking business
1.84%(+0.68pt)
0.80
（%）
Policy interest rate Cost of deposits
預金
５.２兆円
前期差＋6,722億 円
0.60
0.40
0.20
0.00
-0.20
*1 Quarterly revenue or expense (December, January, February) ÷ Average balance for the period (December, January, February) × 4
*2 Loans for residential mortgages and investment condominium mortgages
AEON Financial Service Co., Ltd.
※Data for AEON Bank only; deposit balances are compiled as of the end of
the month.
※Policy interest rates are based on figures published by the Bank of Japan. 15
Productivity
（Cost control）
［Domestic］ Trends in bad debt-related expense ratios and personnel expense ratios
The ratio of bad debt expenses to securitized receivables remains low and stable.
The personnel expense ratio improved by 1.3 percentage points compared to the previous fiscal year. Productivity improvements through efficiency measures and a review of the business portfolio largely contributed to this improvement.
0.8%
Quarterly trends in bad debt-related expense ratio
※Bad debt-related expense ratio to the total balance of operating loans and installment receivables
Quarterly personnel cost rate
※ Personnel expenses / Operating revenue
20.0%
0.6%
19.0%
Line of best fit 18.0%
Result for
FY2025
16.9%（▲1.3pt）
0.4%
0.2%
17.0%
16.0%
Personnel cost rate
0.0%
23/4Q 24/1Q
24/2Q
24/3Q
24/4Q
25/1Q 25/2Q 2５/3Q
2５/4Q
15.0%
23/4Q 24/1Q
24/2Q
24/3Q
24/4Q
25/1Q 25/2Q 2５/3Q 2５/4Q
Achievement rate of KPI’s for FY2025
Excluding locations available to use AEON Pay, results fell short of the KPI’s
Expanding the securitized receivables balance, which forms the revenue base, and utilizing low-interest financing options contributed to achieving the announced values.
Objective
Domestic KPI’s
Indicator
Goal for FY2025
Result
Rate
Achieving economies AEON Ｐａｙ
of scale by expanding locations
the “AEON Living Zone” available for use
+1.00 million
locations
+１.１１ million
locations
１１２%
In-house
Expanding transaction payment
volume of each product transaction
volume
10tr（＋0.5tr）
Credit card：8.0tr E-money：2.0tr
９.８７tr
Credit card：7.８tr E-money：２.０tr
９9%
High-yield
Increased balance and receivables
improved yields
balance
＋55.０bn
＋42.0bn
76%
Bank deposit balance
+ 500.0bn
+ ２６2.5bn
５3%
AEON Financial Service Co., Ltd.
18
Overseas Business
[Overseas] Segment Performance Highlights
For the cumulative term, operating revenue reached record highs across all regions.
In the fourth quarter, profits increased in the Malay area but decreased in the China and Mekong areas due to increased bad debt-related expenses.
(bn JPY)
FY2025
Overseas business
China area
Mekong area
Malay area
YoY
YoY
YoY
YoY
Operating revenue
240.4 bn
108%
35.9 bn
101%
102.8 bn
107%
101.7 bn
112%
Operating profit
41.8 bn
108%
10.8 bn
116%
16.0 bn
100%
14.9 bn
111%
＜Reference＞
Bad debt-related
exp.
75.1 bn
109%
8.1 bn
93%
35.5 bn
112%
31.5 bn
110%
4Q accounting period
（３ months）
Overseas business
China area
Mekong area
Malay area
YoY
YoY
YoY
YoY
Operating revenue
65.2 bn
112%
9.5 bn
100%
28.0 bn
116%
27.6 bn
112%
Operating profit
13.9 bn
104%
2.7 bn
93%
5.1 bn
90%
6.0 bn
129%
＜Reference＞
Bad debt-related
exp.
17.8 bn
115%
2.2 bn
110%
9.5 bn
155%
6.0 bn
82%
[Overseas] Highlights of Performance in China Area
While revenue remained flat due to strengthened screening and ongoing credit assessment, record profits were achieved through cost reductions in bad debt-related expenses and sales promotion expenses.
Operating revenue Breakdown of operating profit
（bn JPY）
36
35.9bn
(YoY 101%)
difference from previous FYPersonnel
10.8bn
Revenue
expenses
9.3bn
+0.3
+0.1
Financial
expenses
▲0.3
Other
Bad ▲0.4
debt-
related expenses
▲0.6
(YoY １16%)
27
18
9
[Overseas] Highlights of Performance in Mekong Area
Despite the stagnant macroeconomic environment in Thailand and increased loan loss provisions due to flooding, as well as the recording of goodwill (900 million yen expense) related to the acquisition of a Vietnamese subsidiary, profits continued to grow.
Operating revenue Breakdown of operating profit difference from previous FY
Financial
（bn JPY） Revenueexpenses
120
102.8bn
＋７.０
▲0.3
(YoY １07%)
90
1６.０bn
Personnel expenses
＋１.６
Bad debt-
related expenses
Other
1６.０bn
(YoY １0０%)
＋３.５
Vietnam ＋0.９
60 impact of new
consolidation※ (Including goodwill)
＋１.１
30
※AEON Consumer Finance Company Limited
（Formerly PTF）
[Overseas] Highlights of Performance in Malay Area
The volume and outstanding balances of installment sales for mid-sized and large motorcycles
increased, sustaining double-digit revenue growth in percentage.
Operating profit grew by over a billion JPY due to stricter screening and strengthened collection systems to address the increase in bad debts, particularly among younger customers.
Operating revenue Breakdown of operating profit difference from previous FY
（bn JPY）
120
101.7bn
Revenue
＋１０.５
Financial
expenses
＋２.５
Personnel Bad
expenses debt-
14.9bn
(YoY 111%)
１３.４bn
＋0.7
related
Digital
expenses Bank
＋2.9
＋1.2
Other
＋1.6
(YoY 112%)
90
60
30
[Overseas] Balance of Receivables and NPL of Listed Subsidiaries
Hong Kong: Improved credit assessment and early delinquency measures suppressed the increase in delinquent loans, resulting in a decline in the NPL ratio and expense ratio throughout the year.
Thailand: Despite additional provisions due to the worsening situation in the Middle East, recovery rates for delinquent loans
improved, resulting in stable NPL ratios and expense ratios.
Malaysia: While the NPL ratio rose, recovery rates, including ordinary loans, improved. A review of loan classifications reduced loan loss-related expenses.
ACSA （Hong Kong） ■ AEONTS （Thailand） ■ ACSM （Malaysia）
（bn JPY）
（bn JPY）
（bn JPY）
12.0% Operating loans(Right)
Installment receivables(Right)
Bad debt expenses/operating receivables(Left)
※
NPL ratio(Left)
200
12.0%
400
12.0%
700
9.0%
150
9.0%
300
9.0%
525
6.0%
100
6.0%
200
6.0%
350
3.0%
50 3.0%
100
3.0%
175
0.0%
2023 2024
0
2025
0.0%
※
2023 2024
0
2025
0.0%
※
2023 2024
0
2025
*Impact of revision to NPL recognition criteria for restructured loans
AEON Financial Service Co., Ltd.
※Impact of the withdrawal of reserves for flood
damage that occurred in the second quarter of 2024
* Impact of reversal due to reclassification of government support program (AKPK) applicable receivables
Year-end rate ※Figures in （） are the diff from the previous quarter
HKD: ¥19.91 (1.1% stronger yen) THB: ¥5.02 (3.5% weaker yen) MYR: ¥40.06 (5.6% weaker yen)
23
Medium-Term Management Plan
AEON Financial Service Co., Ltd.
24
(Fiscal Years 2026–2030)
AEON Financial Service Co., Ltd.
25
Review of the Previous Medium-Term Management Plan
(Fiscal Years 2021–2025)
Performance of Key Financial Indicators | Operating Revenue and Operating Profit
Operating revenue : 569.3 bn yen, Operating profit : 60.6 bn yen, both falling
significantly short of targets
Operating Revenue※Operating Profit
(bn yen)
(bn yen)
Approx. 39.4 bn yen shortfall
50.0
58.8
58.8
60.6
61.4
100.0
800 100
Approximately
190.7 bn yen shortfall
760.0
533.2
569.3
470.6
451.7
485.6
80
600
60
400
40
200
20
0
2021 2022 2023 2024 2025
2025
0
2021 2022 2023 2024 2025
2025
Fiscal Year
(Actual)
(Planned)
Fiscal Year
(Actual)
(Planned)
* Effective from FY2022, the "Accounting Standard for Revenue Recognition" has been adopted.
ROE: 4.5%
Status of Key Performance Indicators | Reasons for Missing Targets
In addition to “insufficient response to customer needs“ and “entrenched high-cost structure” in Japan, the "limitations of the conventional growth model" overseas compounded these issues, resulting in falling short of planned targets.
Reasons for shortfall Key Performance Indicators Detailed Factors
Insufficient response to customer needs
Domestic Active IDs:
39.25 million (79% of targets) Outstanding high-yield debt:
788 bn yen (110% of FY’20 level)
Domestic
*After securitization
Entrenched high-cost structure
Management fees: 102.9 bn yen (up 35% from FY20)
Personnel expenses: 56.0 bn yen (up 8% from FY20)
Limitations of the conventional growth model
Overseas
Operating revenue:
240.4 bn yen (108% of FY20) Unlisted overseas subsidiaries Operating profit: ▲8.4 bn yen
Delayed in developing payment services and benefits tailored to customer needs
Due to the suspension of product development coinciding with the overhaul of the credit system infrastructure, ｄelays in providing services and benefits tailored to customer needs
Insufficient cross-selling of loan products to meet funding needs
Insufficient UI/UX improvements for cross-selling to the customer base acquired through payment services
Existing loan products are unable to capture demand for customers’ immediate funding needs
Continued reliance on labor-intensive operations
Continued reliance on labor-intensive operations has kept the labor cost ratio high
Fixed operational costs due to delays in revising or discontinuing services•benefits
Infrastructure costs required for services and benefits, such as systems, remain high and fixed
Delayed in changing business model
While competitors have been making large-scale digital investments, continued conventional business model
Governance | Recognition of Issues Following the Occurrence of Major Incidents
Recognized deficiencies in risk management and governance systems across the entire group
Major incidents that occurred during the previous medium-term management plan period
Recognition of challenges for the new Medium-term management plan
Q3 2024-
Delays in responding to Aeon Card fraud
Q4 2024
Q1 2025
Improper Accounting at Vietnamese Subsidiary
Weaknesses in risk assessment capabilities and proactive response capabilities
Issues with organizational functions, including insufficient quality and quantity of second-line functions and a lack of ownership among first-line departments within the three lines of defense
Risk management across the Group is fragmented, and its
2021
2024
2025
effectiveness is an issue
Inadequate management framework for subsidiaries
Business strategy and risk management are not aligned, resulting in an incomplete three-line defense
Risk management is not optimized for each subsidiary
Insufficient ongoing response to increasingly sophisticated
Business Operations at Aeon Bank Improvement Order
threat
Continuous and prompt assessment and implementation of countermeasures are insufficient to increasingly sophisticated threat, eg, cyber attack, fraudulent utilization, money laundering etc
Challenges to Address in Implementing Medium-Term Management Plan
In preparation for the new Medium-term management plan, identified the following as key management challenges: responding to customer needs in line with market changes, fundamentally reviewing the domestic cost structure, and prioritizing "safety and security"
Environmental Awareness Challenges
•
Achievements
Internal Environment
Major Organizational and Business Transformation
Review of "Diversified Portfolio and Unprofitable Businesses
New Business Ventures and Market Entry Overseas
Launch of AEON Pay and Development of Supporting Infrastructure
Challenges
Inadequate response to customer needs
Slowing growth of overseas operations
Insufficient improvement of high-cost corporate structure (domestic)
Inadequate capacity to address major risks
External
Environment Forecast
Changes in payment structures
Development and deployment of next-generation payment systems
Further Advancements in AI Technology
Expansion of AI-driven operational efficiency
Increasing sophistication of cyberattacks
From Zero Interest Rates to a “World with Interest
Rates” in Japan
Responding to Customer Needs against Market Change
“Fundamental” Review of
Domestic Cost Structure
Prioritizing "Safety and Security“
Delivering new value that meets
customer needs
Real-time response to evolving payment structures and opportunities in "Finance x AI"
Evolving business models for overseas operations
Reviewing cost structures for products, services, transactions, and operations
Improving operational efficiency through the utilization of AI
Group-wide strengthening integrated risk management and governance responding to major incidents
Advancement of measures in relation
to business related risk
AEON Financial Service Co., Ltd.
30
Medium-Term Management Plan
(Fiscal Years 2026–2030)