For the Three Months ended May 31, 2025

Note : This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Company name AEON Financial Service Co., Ltd. Listings Tokyo Stock Exchange, Prime Market Security code 8570

URL https://www.aeonfinancial.co.jp/en/

Representative Tomoharu Fukayama, President and CEO

Contact: Tomoyuki Mitsufuji, Director, Managing Executive Officer

Starting date of paying year-end dividend -Preparation of brief summary materials for financial results Yes

Holding of financial results presentation Yes (For institutional investors and analysts)

July 31, 2025

1. Business performance (For the Three Months ended May 31, 2025 and for the Three Months ended May 31, 2024)
   1. Consolidated Operating Results

      (Millions of yen truncated to the nearest million, %, yen)

      	Operating income	Percentage Change	Operating profit	Percentage Change	Ordinary profit	Percentage Change	Profit attributable to owners of parent	Percentage Change
      Three Months ended May 31, 2025	136,555	6.7	12,998	-14.8	13,853	-13.3	4,357	-28.4
      Three Months ended May 31, 2024	127,928	9.7	15,249	65.9	15,977	66.6	6,083	69.1

      (Note) Comprehensive income; The 1st Quarter of Fiscal 2025; -6,670 million ( -%),

      The 1st Quarter of Fiscal 2024; 12,349 million ( -21.4%)

      (yen)

      	Net Income per Share	Fully Diluted Net Income per Share
      Three Months ended May 31, 2025	20.19	20.19
      Three Months ended May 31, 2024	28.18	28.18

   2. Financial Position

   (Millions of yen truncated to the nearest million, %, yen)

   	Total Assets	Net Assets	Total equity ratio	Net Assets per Share
   Three Months ended May 31, 2025	7,885,884	571,683	5.6	2,063.86
   Fiscal 2024 ended February 28, 2025	7,756,492	585,766	5.9	2,163.09

   (Note) Equity capital; The 1st Quarter of Fiscal 2025; 445,547 million

   Fiscal year ending February 2025; 461,139 million

2. Cash Dividends

   (yen)

   	Dividend per share
   (Base date)	First quarter period	Interim period	Third quarter period	Term end	Annual
   Fiscal 2024 ended February 28, 2025	-	25.00	-	28.00	53.00
   Fiscal 2025 ended February 28, 2026	-
   Fiscal 2025 ended February 28, 2026 (Estimated)		25.00	-	28.00	53.00

   (Note) Amendments from the most recently published dividend forecast : None

3. Projections (For the fiscal year ending February 28, 2026)

   (Millions of yen, %) (YoY is the percentage of change to the previous year)

   	Operating income	YoY	Operating profit	YoY	Ordinary profit	YoY	Profit attributable to owners of parent	YoY	Net income per share
   Full term	570,000	6.9	57,000	-7.3	57,000	-8.9	21,000	34.2	97.28

   (Note) Amendments from the most recently published projections forecast : None Interim projections forecast are not disclosed

   ※Notes

   1. Change in significant subsidiary during the term: None

      (Change in specified subsidiary that caused a change in the scope of consolidation): None

   2. Application of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

   3. Change in accounting principle, procedure, disclosure, etc. concerning preparation of consolidated financial statements

      ①Change due to a newly issued accounting requirement: Yes

      ②Change other than ①: None

      ③Change accounting quotation: None

      ④Restatement: None

   4. Number of shares issued (Common stock)

      1. Number of shares issued at end of period (treasury stock included): May 31, 2025; 216,010,128 shares, Fiscal 2024; 216,010,128 shares

      2. Number of shares held in treasury at end of period:

         May 31, 2025; 129,519 shares; Fiscal 2024; 129,593 shares

      3. Average number of shares outstanding during the period: Three Months ended May 31, 2025: 215,880,565 shares

Three Months ended May 31, 2024: 215,870,241 shares

※ Review of the Japanese originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm：Yes (mandatory)

※ Projections above are based on management's assumptions using information available at the time of publication and are not a guarantee of achieving these projections. Due to various factors, actual results may differ from these projections.

※ The Company provides FACT BOOK on its business and performance on its website.

（1）Consolidated Balance Sheet

1. Consolidated Statement of Income and Comprehensive Income

   (Consolidated Statement of Comprehensive Income for the 1stQuarter of FY2025)

   		(Millions of yen)
   Three months ended May 31, 2024		Three months ended May 31, 2025
   Operating revenue
   Revenue from credit card business	33,508	34,912
   Revenue from installment sales finance business	12,001	13,142
   Financing revenue	40,744	43,010
   Recoveries of written off receivables	4,559	4,484
   Financial revenue	13,206	15,294
   Insurance revenue	3,156	3,807
   Fees and commissions	19,066	19,563
   Other	1,684	2,340
   Total operating revenue	127,928	136,555
   Operating expenses
   Financial expenses	8,113	14,071
   Insurance expenses	2,768	3,514
   Fees and commissions payments	2,736	2,402
   Selling, general and administrative expenses	98,275	102,583
   Other	783	984
   Total operating expenses	112,678	123,556
   Operating profit	15,249	12,998
   Non-operating income
   Dividend income	69	137
   Gain on investments in investment partnerships	38	1,940
   Foreign exchange gains	478	-
   Subsidy income	146	-
   Other	60	17
   Total non-operating income	794	2,095
   Non-operating expenses
   Share of loss of entities accounted for using equity method	64	149
   Foreign exchange loss	-	1,090
   Miscellaneous losses	1	0
   Total non-operating expenses	66	1,240
   Ordinary profit	15,977	13,853
   Extraordinary income
   Gain on sale of non-current assets	2	8
   Gain on sale of investment securities	-	1,013
   Total extraordinary income	2	1,021
   Extraordinary losses
   Loss on disposal of non-current assets	319	121
   Impairment losses	29	2,794
   Loss on sale of shares of subsidiaries	2,306	-
   Total extraordinary losses	2,655	2,916
   Profit before income taxes	13,324	11,957
   Income taxes - current	5,958	6,050
   Income taxes - deferred	△1,513	△2,008
   Total income taxes	4,444	4,041
   Profit	8,879	7,916
   Profit attributable to non-controlling interests	2,796	3,558
   Profit attributable to owners of parent	6,083	4,357

   (Consolidated Statement of Comprehensive Income for the 1stQuarter of FY2025)

   		(Millions of yen)
   Three months ended May 31, 2024		Three months ended May 31, 2025
   Profit	8,879	7,916
   Other comprehensive income
   Valuation difference on available-for-sale securities	△8,101	△17,641
   Deferred gains or losses on hedges	474	6,077
   Foreign currency translation adjustment	11,151	△3,121
   Remeasurements of defined benefit plans, net of tax	△54	98
   Total other comprehensive income	3,470	△14,586
   Comprehensive income	12,349	△6,670
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	5,115	△9,544
   Comprehensive income attributable to non-controlling interests	7,234	2,874

2. Notes to the Quarterly Consolidated Financial Statements

(Significant Matters Concerning the Preparation of the Quarterly Consolidated Financial Statements)

The quarterly consolidated financial statements have been prepared in accordance with Article 4, Paragraph 1 of the Standards for Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange, Inc., and the generally accepted accounting standards for quarterly financial statements in Japan.

(Notes Regarding the Going Concern Assumption) Not applicable.

(Changes in the Scope of Consolidation or the Scope of Application of the Equity Method)

1. Significant Changes in the Scope of Consolidation Not applicable.

2. Significant Changes in the Scope of Application of the Equity Method Not applicable.

3. Changes in Matters Concerning the Fiscal Years, etc. of Consolidated Subsidiaries Not applicable.

(Changes in Accounting Policies)

(Application of the "Accounting Standard for Corporate, Resident, and Enterprise Taxes,")

The "Accounting Standard for Corporate, Resident, and Enterprise Taxes,"(ASBJ Statement No. 27, October 28, 2022; hereinafter the "2022 Revised Accounting Standard"), has been applied from the beginning of the first quarter of the current fiscal year.

With regard to the amendments to the classification of corporate taxes, etc. (taxation of other comprehensive income), we have followed the transitional treatment set forth in the proviso to Paragraph 20-3 of the 2022 Revised Accounting Standard and the transitional treatment set forth in the proviso to Paragraph 65-2(2) of the "Guidance on Accounting Standards for Tax Effect Accounting" (ASBJ Guidance No. 28, October 28, 2022; hereinafter referred to as the "2022 Revised Guidance"). This change in accounting policy has no impact on the quarterly consolidated financial statements.

Additionally, with regard to the amendments related to the revision of the treatment in consolidated financial statements of tax deferrals of gains and losses arising from sales of subsidiary shares, etc. between consolidated companies, the 2022 revised implementation guidelines have been applied from the beginning of the first quarter of this fiscal year. This change in accounting policy has been applied retroactively, and the quarterly consolidated financial statements and consolidated financial statements for the previous quarter and fiscal year are retroactively applied. Please note that this change in accounting policy has no impact on the quarterly consolidated financial statements for the previous quarter and the consolidated financial statements for the previous fiscal year.