Fiscal 2025 For the Three Months ended May 31, 2025

‌FY2025 1Q

IR Presentation Material

July 31, 2025

AEON Financial Service Co., Ltd.

1

Stock Listing: Tokyo Stock Exchange, Prime Market Code No: 8570

‌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.

AEON Financial Service Co., Ltd. 2

‌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

AEON Financial Service Co., Ltd. 3

Appendix

‌The Highlights of the Consolidated Results

AEON Financial Service Co., Ltd. 4

‌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 in financial expenses as well

Improvement of asset profitability

・Steady expansion of receivables

balance* contributing to profits

Domestic : 758.2bn （YoY10１％）

Global : １,0２９.０bn（YoY107％）

Financial

Improvement of productivity

・Suppression of increase in bad debt-related expenses

・Increase in financial expenses, but promotional expenses down 2 billion yen due to emphasis on efficiency

Other

Revenue

+1.7

Review of business portfolio

・On July 1, the transfer of AEON Allianz Life Insurance Co., Ltd.’s shares to Meiji Yasuda was completed.

・Prior to the transfer, a system impairment (-2.7 billion yen) was implemented for personal insurance.

Units ： Bn JPY

Loan

Revenue

Revenue

+2.１

Financial expenses

Bad debt

Profit Expenses

Installment

+2.3

+５.９

related

finance revenue

(comprehensive

/individual)

＋2.5

expenses

＋1.4

Other expenses

＋３.5

２4/1Q Operating Profit

AEON Financial Service Co., Ltd.

２5/1Q Operating Profit ２5/1Q Net Income

*Listed receivables balance is after liquidation.

*High-yield operating receivables: domestic revolving/installment loans, cash advances, unsecured loans, and 5

receivables in international business

‌AEON Financial Service Co., Ltd.

6

Domestic Business

‌[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(-)

  Expense(-)

  Expense(+)

  Credit Card

  Revenue

  ＋2.1

  Financial revenue

  +2.0

  Other revenue

  +0.9

  Gains from liquidation

  +0.7

  Financial expenses

  ＋5.１

  Sales Bad debt promotion related expenses expenses

  ▲１.8 ＋0.4

  General and administrative expenses

  ＋４.９

  ６.3bn

  3.4bn

  ２4/1Q

  ２5/1Q

  ＋8.6bn

cial Service Co., Ltd.

7

Main Factors

AEON F

Productivity

（Increasing

Revenue）

‌［Domestic］ Valid ID Status

• 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

  20

  0

  2１/1Q

  22/1Q 23/1Q 24/1Q

  25/1Q

  AEON Financial Service Co., Ltd.

  *Valid ID: Number of customers using services such as AEON Card, AEON Pay, AEON Bank account,

  *If there are duplicate members, the names will be collated and tabulated. 8

  Productivity

  (Revenue growth)

  ‌[Domestic] Credit card・AEON Pay

• 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

members has grown steadily to 12.24 million.

No. of active domestic

cardholders/utilization rate

No. of AEON Pay members and available locations

KPI：

（Unit: million people）

28

70.0%

（Unit: million people）

10

3.１３million

KPI：

＋１million

g2 locations

（Progression

（Diff from beginnin

of term 0.1 million）

＋１million locations

3.0%

（Progression

rate１０％）

8.75million

rate １０％）

（Diff from beginning

of term ＋0.２１million）

26 68.0%

Usable locations

2.01million

8

(Diff from beginning of term）

21.0%

66.4％

(YoY▲0.7pt)

24 66.0% 6

19.2％

(YoY▲1.0pt)

19.0%

22

64.0

0 0 %

2４/1Q 2Q ３Q ４Q 2５/1Q

0 0 %

4

17.0

24/1Q 2Q ３Q ４Q 2５/1Q

AEON Financial Service Co., Ltd.

※Change in calculation method for memberships. Under the previous method, the number would be 12.42 million 9

(+0.97 million from the beginning of the period).

Productivity

(Revenue growth)

‌[Domestic] In-house settlement transaction volume

• 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

（bn JPY）

2,800

（YoY 104%）

（bn JPY）

100

９５.５ bn JPY

（YoY 142%）

Charge payment

7.5 bn JPY

(YoY 300%)

2,100

E-money

504.6 bn JPY 75

(YoY １００%)

1,400

700

50

Credit card purchase 1,954.1 bn JPY (YoY 10６%)

25

Credit payment

88.0 bn JPY

(YoY 13６%)

0

21/1Q

22/1Q

23/1Q

24/1Q

25/1Q

0 23/1Q 24/1Q 25/1Q

AEON Financial Service Co., Ltd. 10

Asset

Profitability

Improvement

‌[Domestic] Building a foundation for stock income

• Accumulation of high-yield receivables to build a profit base is progressing smoothly toward the end-of-period balance KPI of +55 billion yen

（after implementation of securitization）

（bn JPY）

Revolving credit・

※High-yield loans: revolving credit, installment finance, cash advances,

1,000

installment payment balances

８24.1 bn

（YoY106%/+２１.４ bn JPY）

unsecured loans

receivables 4,5６７２bn

4,390.8bn

4,149.1bn

High-yield Receivables 758.２bn

（YoY10１%/+３２.９bn）

752.１bn

１.0tr

667.９bn

20.0%

17.1%

16.1%

Composition ratio

16.6%

(▲0.5ｐt)

Total domestic operating

5.0tr

750

500

250

Revolving credit YoY113%/＋９５bn

Installment payment YoY105%/▲０bn

Cash advance YoY103%/＋１１５bn

Unsecured loan YoY 97%/＋4bn

0

20/1Q

21/1Q 22/1Q

23/1Q

24/1Q 25/1Q

23/1Q 24/1Q 25/1Q

AEON Financial Service Co., Ltd. 11

‌[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

  （bn JPY）

  6,000

  5,2３４.１bn

  （YoY １１５％、＋３２.５bn）

  Promoting the creation of accounts used in daily life

  “AEON Bank My Stage” ※1 Rankings※２Composition Ratio

  KPI：＋500.0bn

  （Progression rate６.５％）

  100%

  ２５.0％

  （YoY ＋1.2pt)

  4,500

  50%

  3,000

  1,500

  0%

  23/1Q 24/1Q 25/1Q

  ※2 Stage Composition

  Ratio

  AEON Bank Gold Stage＋ Platinum Stage Composition Ratio

  0

  21/1Q

  22/1Q

  23/1Q

  *1 AEON Bank My Stage

  Preferential treatment system based on transaction details

  Gold

  Stage

  Platinum

  Stage

  ①Credit, WAON use history

  ②Housing loans/Unsecured loans

  ③Salary/pension accounts

  Bronze

  Stage

  Silver

  Stage

  12

  24/1Q 25/1Q

  AEON Financial Service Co., Ltd.

  ‌[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 the previous year since April.

  Housing Loan Transaction Volume

  （bn JPY）

  240

  Residential mortgage advance applications (YoY change)

  110%

  108%

  105%

  98% 99%

  99%

  94%

  93% 93%

  93%

  90%

  90%

  87%

  88%

  77%

  180

  120 ９２.３bn

  （YoY ５３％）

  60

  0

  2１/1Q

  22/1Q

  23/1Q

  24/1Q

  25/1Q

  March, 2024 September, 2024 March, 2025

  AEON Financial Service Co., Ltd. 13

  ‌[Domestic] Controlling bad debt related expenses and

  costs by improving productivity

  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 downward due to improved productivity

  Quarterly trends in baddebt related expense ratio

  ※Bad debt related expense ratio against the total balance of

  revolving/installment loans, cash advances, and unsecured loans

  Quarterly trends in labor cost rates

  Approximate

  curve

  Labor cost

  rate

  1.5%

  23.0%

  1.0%

  20.0%

  0.5% 17.0%

  0.0%

  23/1Q 23/2Q 2３/3Q

  23/4Q

  24/1Q

  24/2Q

  24/3Q 24/4Q 2５/１Q

  14.0%

  23/1Q 23/2Q 2３/3Q

  23/4Q

  24/1Q

  24/2Q

  24/3Q 24/4Q 2５/１Q

  AEON Financial Service Co., Ltd. 14

  ‌AEON Financial Service Co., Ltd.

  15

  Global Business

  ‌[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			China Area		Mekong Area		Malay Area
  			YoY		YoY		YoY		YoY
  Operating revenue	５６.3 bn		１０６ ％	８.４ bn	９９ ％	２４.3 bn	１０５ ％	２３.５ bn	１１０ ％
  Operating profit	９.4 bn		107 ％	２.４ bn	1２７ ％	4.0 bn	156 ％	２.８ bn	６８ ％
  Bad debt-related exp.	１８.１ bn		１0６ ％	１.９ bn	8５ ％	７.8 bn	89 ％	8.２ bn	１３９ ％
  		Average exchange rate during the period *Figures in () are diff from the same period of the previous year HKD ： ¥１８.８０ (3.9％ stronger yen) THB ： ¥4.3７ (0.2% weaker yen) MYR ： ¥33.５7 (0.5％ stronger yen)

  AEON Financial Service Co., Ltd. 16

  ‌[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

difference from previous FY

10.0

7.5

（Unit ： Bn JPY）

8.５bn

(YoY 99%)

Bad debt related expenses

2.4bn

1.9bn

Financial expenses

▲0.0

▲0.3

Other

▲0.２

Personnel Revenue expenses

▲0.1 ▲0.０

(YoY １27%)

5.0

2.5

0.0

21/1Q

22/1Q

23/1Q

24/1Q 25/1Q

24/1Q

25/1Q

AEON Financial Service Co., Ltd. 17

‌[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 receivables balance as a result of stricter credit standards in light of the economic environment

  Operating revenue

  Breakdown of operating profit difference from previous FY

  2824.３bn

  Financial expenses

  ４.0bn

  ＋0.２ Other ▲0.1 Personnel Bad debt ２.５bn expenses related
  		Revenue ＋０.３ expenses ＋１.１ ▲0.9

  (YoY １56%)

  （Unit ： Bn JPY）

  21

  14

  7

  (YoY １０5%)

  0

  21/1Q

  22/1Q

  23/1Q

  24/1Q 25/1Q

  24/1Q

  25/1Q

  AEON Financial Service Co., Ltd. 18

  ‌[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

  receivables and increased expenses associated with the launch of a digital bank.

  Operating revenue

  Breakdown of operating profit difference from previous FY

  28

  （Unit ： Bn JPY）

  23.5bn

  (YoY 110%)

  Financial expenses

  ＋0.5

  Bad debt related expenses

  ＋2.3

  21

  ４.２bn

  14

  Revenue

  ＋2.1

  Personnel expenses

  ▲0.1

  Digital bank

  ＋0.3

  Other

  +0.4

  ２.８bn

  (YoY ６８%)

  7

  0

  21/1Q

  22/1Q

  23/1Q

  24/1Q 25/1Q

  24/1Q

  25/1Q

  AEON Financial Service Co., Ltd. 19

  ‌[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 debt expense ratio

  has risen

• ACSM：The accumulation of receivables balances has progressed well, and the NPL ratio and bad debt expense ratio have risen gradually

• ACSA（Hong Kong） ■ AEONTS（Thailand） ■ ACSM（Malaysia）

（Unit: bn JPY）

（Unit: bn JPY）

（Unit: bn JPY）

12.0% Total loans and bills discounted (RHS)

200

12.0%

400

12.0%

500

※

9.0%

※

Bad debt related expenses/receivables(LHS)150

9.0%

300

9.0%

375

6.0%

100

6.0%

200

6.0%

250

3.0%

50 3.0%

100

3.0%

125

0.0%

2023 2024

0

2025

0.0%

2023 2024

0

2025

0.0%

2023 2024

0

2025

※Impact of the revision of the criteria for

recognizing NPLs for restructured loans

※Impact of withdrawal of reserves for flood damage

that occurred in 2Q 2024

Term-end rate*Figures in () are the diff from the previous quarter

AEON Financial Service Co., Ltd.

HKD ：¥１８.３5(4.6％ stronger yen) THB ：¥4.４１(0.７％ weaker yen) MYR ：¥3４.０７(1.７％ weaker yen)20