Integrated Report 2025
(For the year ended February 28, 2025)
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
AEON Foundational Ideals
Pursuing peace, respecting humans, and contributing to local communities, always with customers as our starting point.
AEON Financial Service Co., Ltd.
AEON firmly believes that retailing is an industry to promote peace, humanity, and local communities.
To remain a thriving corporate group that fulfills this mission,
we are committed to continuous innovation, with customers as our starting point.
Please refer to our corporate website for the AEON Foundational Ideals
https://www.aeon.info/en/company/concept/ 1
Integrated Report 2025
AEON Group Future Vision
Create a future lifestyle that leads to a smile for each and every person
The future that the AEON group wishes to realize is one in which customers can feel a "brighter society" and "happiness that is uniquely their own," creating a future that is fulfilling and full of smiles.
The AEON group wishes to be a group that leads the co-creation of lifestyles, enriching each individual and society as a whole.
Please refer to our corporate website for the AEON Group Future Vision
https://www.aeon.info/vision/en/
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
Our purpose is to bring "finance" closer to everyone. By committing to each and every person,
we brighten up everyday lives with peace of mind and smiles.
AEON Financial Service Co., Ltd.
Details of Our Purpose P.14
Our purpose is to
bring "finance" closer to everyone.
By committing to each and every person,
we brighten up everyday lives
Integrated Report 2025
with peace of mind and smiles. 2
As the financial services business of the AEON Group, we provide convenient and easy-to-understand financial
services by adopting the perspective of consumers. We also promote financial education for all generations and bring financial mechanisms closer to everyone through financial inclusion that meets diverse financial needs.
We commit sincerely with each consumer to provide financial services tailored to changing life stages and living environments. We also generate new value by cooperating with various business partners in local communities, including participating merchants and local authorities.
Acting empathetically from a customer perspective is one of our core values.
As a financial institution, we help our customers lead richer lives and achieve happiness by providing support for everyday life. We respect our colleagues' diversity and value the environment and corporate culture that allow us to work freely, openly, and with pride. Through these, we provide value by filling everyday lives with peace of mind and smiles and by brightening up their minds with uplifting feelings and excitement.
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Contents
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AEON Foundational Ideals / AEON Group Future Vision 1
HOW 25
Our Purpose 2
Contents / Editorial Policy 3
WHAT/WHO 5
What do we do?
Financial Services Business of the AEON Group 6
History of Value Creation 7
At a Glance 9
Value Creation Process 11
How do we do it?
Medium-Term Management Plan 26
Message from Finance and Accounting Representative 30
Business Personnel 33
Sustainability of AEON Financial Service Group 35
Materiality
Materiality
Materiality
Materiality
Message from the
AEON Financial Service Co., Ltd.
President and CEO 15
Integrated Report 2025
Message from Finance and Accounting Representative 30
WHY
Why do we do it, and why can we do it?
13 DATA 75
Realization of Our Purpose 14
Message from the President and CEO 15
Our Uniqueness & Strengths 19
Message from Our Overseas Listed Subsidiaries Representative 22
Data / Company Information
Financial Highlights 76
Non-financial Highlights 77
11-year Summary 78
Company Information 79
Affiliated Companies 80
Share Information 81
Publication of the 2025 Integrated Report / Editorial Note 82
Our Purpose Employee
Roundtable Discussion 43
Outside Directors Interview 52
3
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Editorial Policy
Disclosure Framework
Financial Information
Non-financial Information
Shareholder and Investor Information
https://www.aeonfinancial.co.jp/en/ir/
Sustainability Information
https://www.aeonfinancial.co.jp/en/activity/
IR Presentation Materials, About Us
Corporate Governance Report
Brief Report of Financial Results, Fact Book
Briefing Materials for Individual Investors
Annual Securities Report
Editorial Policy for AEON Financial Service's Integrated Report
We have published an integrated report since 2017 so that our stakeholders, including investors, can deepen their understanding of our initiatives for sustainable value creation.
In editing this report, we referred to the "International Integrated Reporting Framework" recommended by the IFRS Foundation and the "Guidance for Collaborative Value Creation 2.0" published by the Ministry of Economy, Trade and Industry.
AEON Financial Service Co., Ltd.
Starting with Our Purpose, which is the reason for the existence of the AEON Financial Service (AFS) Group, this report showcases the value we provide to local communities and customers' lives through financial services such as payments, lending, and banking developed both in Japan and overseas. It also systematically introduces our initiatives for sustainable growth, such as sustainability, DX, and strengthening human capital.
For more details, please refer to the various materials disclosed on our corporate website listed in the Disclosure Framework.
Main Points of Integrated Report 2025
This report is structured to clearly convey the AFS Group's value creation story to investors who evaluate us from a medium- to long-term perspective.
Based on the feedback received through dialogue with investors, the Integrated Report 2025 was created with the concept of conveying the following with a greater focus on storytelling and reality: the capital that is the source of the AFS Group's corporate value; our uniqueness and strengths; the sustainability initiatives that support them; and our policies for future growth.
"WHAT / WHO: What do we do?"
"WHY: Why do we do it, and why can we do it?" "HOW: How do we do it?"
Centering on these three questions, we communicate the AFS Group's history of value creation, our unique strengths, and our initiatives to realize our Ideal State.
In addition, we introduce points of great interest to everyone alongside our initiatives for value creation.
Introduction of Three Overseas Listed Companies (P.22-24)
Introduction of our overseas expansion, which is both our uniqueness and strength, along with the history of each company
Introduction of Business Personnel (P.33-34)
Introduction of personnel who have contributed to the development of services utilizing digital technology, a key area of focus
Our Purpose Employee Roundtable (P.43-44)
A roundtable discussion on the theme of "Deepening Purpose Management"
Outside Directors Interview (P.52-54)
Progress in Corporate Governance as a financial group
We convey our strengths and potential from a more realistic perspective through the voices of those on the frontline.
Website
Integrated Report 2025
https://www.aeonfinancial.co.jp/en/
Reporting Scope
Organizations: AEON Financial Service Co., Ltd. and its consolidated subsidiaries
Period: Year ended February 28, 2025 (March 1, 2024 to February 28, 2025) *Includes some information outside this period.
Notes on Forward-looking Statements
Statements contained in this Integrated Report with respect to the Company's future management strategy, business policy, and results forecasts are forward-looking statements, which are based on the assumptions and estimates in light of the information currently available. These forward-looking statements involve various uncertain factors, including risks related to economic trends, industry competition, market demand, exchange rates, and tax and other systems. Therefore, the Company's actual results, performance or achievements to be announced going forward may differ from the statements herein due to these factors.
4
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
AEON Financial Service Co., Ltd.
Integrated Report 2025
5
What do we do?What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Financial Services Business of the AEON Group
As the financial services business of the AEON Group, the AFS Group plays the role of building the infrastructure that connects the AEON Living Zone through financial services. In addition to AEON's brand power and the business scale and store network developed across Asian countries, we develop our business by leveraging the wide-ranging financial know-how we have cultivated since our founding, including payments such as credit cards, and banking.
As a comprehensive financial group with its origins in the retail industry, we continue to grow by providing financial services that are unique to our company and closest to our customers.
Retail
Logistics
Health
Using
Investing
Digital
Saving
Customers
Commercial
Preparing for Facilities the Future
Borrowing
Managing Assets
Merchandise
Entertainment
Mobile
m
AEON Financial Service Co., Ltd.
Role of the Financial Services Business in the AEON Living Zone
m
u
n
i
t
i
e
s
L
o
c
a
l
c
o
AEON defines the AEON Living Zone as a state where the accumulation of community-rooted business activities resolves regional issues and leads to the growth of AEON and the richness of region.
The AFS Group aims to realize the AEON Living Zone by offering comprehensive financial services, providing financial services essential to customers' daily lives.
Financial services provided by the AFS Group
Products, services, and places provided by the AEON Group
Integrated Report 2025
AEON Group Consolidated Business Scale
5%
Operating Revenue
¥10,134.8
billion
26%
Operating Revenue
¥237.7
billion
s
r
e
n
t
r
a
p
s
s
e
n
i
s
u
B
s
r
e
i
l
p
p
u
S
&
s
t
n
a
h
c
r
e
M
The Financial Services Business accounts for approximately 5% of the AEON Group's consolidated operating revenue and approximately 26% of its consolidated operating profit.
*Figures are actual results for FY2024 (March 2024 to February 2025).
*The Financial Services Business includes the AFS Group, in addition to AEON Reit Management Co., Ltd.
6
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
History of Value Creation
Value creation through comprehensive financialization and internationalization of financial services, and Ideal State for 2030
Since its founding, AEON Financial Service has promoted comprehensive financialization and internationalization, continuing to provide services to bring finance closer to customers in Japan and Asian countries, thereby creating value.
AEON Financial Service Co., Ltd.
Provision of Comprehensive Financial Services Expansion into AsianCountries
Consolidated Operating Revenue
(FY)
Starting with the issuance of the JUSCO Card in 1980, we have developed diverse financial services such as banking, insurance, and e-money.
Since entering Hong Kong in 1987, we have expanded our business to 10 Asian countries, providing financial services rooted in each country and area
•
•
Bubble economy and consumption expansion due to increase in real wages
Proliferation of credit cards
1982
1983
1984
1985
1986
1987
1988
1989
•
•
1990
Bubble burst and contraction of domestic market
1997 Asian currency crisis
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
1994 Changed trade name to AEON Credit Service Co., Ltd .
1996 Shares listed on the Second Section of the Tokyo Stock Exchange
1998 Shares listed on the First Section of the Tokyo Stock Exchange
7
1987 Opened the Hong Kong branch Began overseas operations in Asia
Focusing on the economic growth in Asian countries, we started our overseas expansion together with the AEON Group's retail business. We developed the non-bank market by providing financial services to people who found it difficult to receive services from local financial institutions.
1980 Began issuing the JUSCO Card
1981 Established Nihon Credit Service Co., Ltd.
"If I'm going to spend money, I want convenience and benefits." The financial business originating from the retail industry started from the voices of sales floor employees at the General Merchandise Store JUSCO (currently AEON), who were the first to pick up on these customer sentiments.
Integrated Report 2025
1990 Established NIHON CREDIT SERVICE(ASIA)CO., LTD. (currently AEON CREDIT SERVICE (ASIA) CO., LTD.) in Hong Kong
1992 Established SIAM NCS CO., LTD. (currently AEON THANA SINSAP(THAILAND)PCL.) in Thailand
1995 Shares of AEON CREDIT SERVICE (ASIA) CO., LTD.
listed on the Hong Kong Stock Exchange
To achieve further growth as a company providing accessible financial services rooted in the community, we listed on local stock exchanges. We listed on local exchanges in Thailand in 2001 and Malaysia in 2007, making a leap forward globally.
2003 Began issuing AEON Gold Card, the industry's first credit card with no annual fee
Since then, we have continued to provide innovative services not bound by preconceived notions, aiming for more convenient and advantageous financial services, such as signless card payments and bank branches that open 365 days a year.
1996 Established ACS CREDIT SERVICE (M) SDN. BHD. (currently AEON CREDIT SERVICE (M) BERHAD) in Malaysia
2000 Established subsidiary in Shenzhen, China
2001 Shares of AEON THANA SINSAP (THAILAND) PCL. listed
on the Stock Exchange of Thailand
100,000
200,000
300,000
400,000 500,000 600,000 (Millions of yen)
Consolidated Operating Revenue
What do we do? Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
2004
2005
•
•
Multiple debt problem and revised Money Lending Business Act (promulgated in 2006, fully enforced in 2010)
2008 Lehman Brothers bankruptcy crisis
2006
2007
2008
2009
2010
2011
2012
2013
•
•
Financial deregulation and market entrants from other industries
Development of fintech
2014
2015
2016
2017
2018
2019
•
•
Global outbreak of COVID-19 and lifestyle transformation
Acceleration of inflation
2020
2021
2022
2023
2024
2025
2007 Began operations of AEON Bank, Ltd
2008 Insurance agency business merged to establish AEON Insurance Service Co., Ltd.
2009 Began issuing AEON Card Select, a single card that functions as a credit card, cash card, and e-money
2010 Launched AEON Select Club, a service for housing loan customers
2021 Launched the AEON Pay code payment system
Responding to changes in lifestyles, we launched a code payment service. We moved towards financial services that are even closer to customers by leveraging the channels most familiar to them.
2013 Created AEON Financial Service Co., Ltd.
The management of AEON Bank, Ltd. and AEON Credit Service Co., Ltd. was integrated to provide one-stop services
to customers, improve brand power, and optimize the allocation of management resources, deepening our comprehensive financial services
2016 Launched smartphone app AEON Wallet
2023 Integrated management between AEON Financial Service Co., Ltd. and AEON Credit Service Co., Ltd.
2006 Established subsidiary in Indonesia
2007 Shares of AEON CREDIT SERVICE (M) BERHAD listed
on the Malaysian stock exchange
2008 Established subsidiaries in the Philippines and Vietnam
AEON Financial Service Co., Ltd.
2011 Established subsidiaries in India and Cambodia
2012 Established subsidiary in Laos and Myanmar
2024 [Malaysia] Began operations of AEON BANK (M) BERHAD, a
digital bank business
Started Malaysia's first digital banking business based on the Islamic financial system, promoting the construction of a new business model
Integrated Report 2025
8
*1
2025 Made Post and Telecommunication Finance Company Limited*2, which operates a finance business in Vietnam, a consolidated subsidiary
100,000
200,000
300,000
400,000 500,000 600,000 (Millions of yen)
*1 The Accounting Standard for Revenue Recognition has been adopted since FY2022
*2 Changed the trade name to AEON Consumer Finance Company Limited
Ideal State for 2030
in October 2025
A community-based global company that brings "finance closer to everyone"
What do we do?
Why do we do it, and why can we do it?
How do we do it? Data / Company Information
At a Glance
(As of the end of February 2025)
Consolidated Card Shopping Transaction Volume
¥7,993.2
billion
Consolidated Card Cashing Transaction Volume
¥560.9
billion
Consolidated Finance Receivables*
¥8,087.8
billion
*Balance before securitization
Deposit Balance*
¥5,201.6
billion
*AEON Bank, Ltd. non-consolidated
Consolidated Valid IDs
55.72
million
Overseas
42%
Overseas
63%
Consolidated Operating Revenue
¥533.2
billion
Consolidated Operating Profit
¥61.4
billion
Domestic
58%
Domestic
37%
Business Areas
AEON Financial Service Co., Ltd.
11 countries in Asia including Japan
Employees
15,547
(Domestic: 4,644 Overseas: 10,903)
Consolidated Companies
32 9
Integrated Report 2025
(Domestic: 9 Overseas: 23)
Stores
421
(Domestic: 182 Overseas: 239)
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
At a Glance (As of the end of February 2025)
13%
China Area
68%
Operating Revenue by Area
34%
Japan
54%
19%
Hong Kong, Shenzhen (China)
¥35.5
billion
(Billions of yen)
¥313.1
AEON Financial Service Co., Ltd.
billion
4%
8%
(Billions of yen)
40.0
30.0
22.4
30.6
35.5
400.0
300.0
200.0
100.0
350.9 333.4
282.7 293.9 313.1
20.0
10.0
15.5 15.7
0
Integrated Report 2025
2020 2021 2022 2023 2024
(FY) 10
0
2020
2021 2022 2023 2024 (FY)
17%
Note: The Accounting Standard for Revenue Recognition has been adopted since FY2022.
18%
49%
6%
33%
Mekong Area
Thailand, Cambodia, Vietnam Myanmar, Laos
¥95.7
billion
44%
7%
26%
Malay Area
Malaysia, Philippines Indonesia, India
¥91.1
billion
(Billions of yen)
100.0
86.0 89.9
95.7
Credit cards (shopping, cashing) Unsecured personal loans
(Billions of yen)
100.0
80.0
72.9
91.1
80.0
60.0
40.0
20.0
73.8 72.4
Installment finance (installment payments) Loans and bills discounted for banking business Insurance
Other
60.0
40.0
20.0
0
47.6 49.9
60.9
0
2020 2021 2022 2023 2024
(FY)
2020 2021 2022 2023 2024
(FY)
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Value Creation Process
Guided by Our Purpose, "to bring finance closer to everyone. By committing to each and every person, we brighten up everyday lives with peace of mind and smiles," we will provide the innovative financial services that customers need to continue serving their lives at all times, in all places, and in all situations.
*Figures as of the end of February 2025
INPUT
SOCIAL ISSUES AND MATERIALITY
BUSINESS ACTIVITY (BUSINESS PROCESS)
Opportunities
Economic growth in Asian countries
Sophistication and advancement of
AEON Financial Service's Materiality
Pursuing Happiness through Innovative
Financial Capital
Consolidated total assets
¥7,756.4 billion Consolidated equity ¥461.1 billion Equity ratio 5.9%
Human Capital
Medium-Term Management Plan
AEON Financial Service Co., Ltd.
Second Founding: Value Chain Transformation and New Network Creation
Payment
industrial and digital technology
Shift toward cashless payments
Changes in the domestic interest rate environment
Financial Services
Exerting Diversity and the Potential of
Employees 15,547
including Overseas 10,903
Intellectual Capital
Credit and collection know-how cultivated over 44 years since establishment Utilization of digital technology such as AI
Servicer
Our Uniqueness & Strengths 1
Integrated Report 2025
Utilization of AEON Group infrastructure
Our Purpose
Our purpose is to bring
Our Uniqueness & Strengths 2
Creation of numerous industry-first innovative services
Banking
Risks
Our People
Establishing
Accumulation of data such as purchasing
Social Capital
Business areas 11 countries Consolidated valid IDs 55.72 million
Loan
Our Uniqueness & Strengths 3
"finance" closer to everyone.
By committing to each and every person,
we brighten up everyday lives with peace of mind and smiles.
Our Uniqueness
Insurance
Demographic changes such as declining birthrate
and aging population
Political instability such as wars and conflicts
Intensifying competition beyond business
Organizational
Resilience
Addressing Climate Change
Of which, domestic valid IDs 36.15 million
Dialogues with investors and analysts
188 times/year
AEON Brand Strength
Consolidated companies
(excluding AEON Co., Ltd.) 306
Equity-method affiliates 26
Business areas 14 countries AEON Group employees
Community-based business development
Installment Finance
& Strengths 4
Global expansion centered on Asia
Leasing
formats
Sustainability of AEON Financial Service Group (P.35)
Approximately 620,000
Stores/Locations 18,086
Corporate Governance
AFS' Uniqueness & Strengths (P.19) Medium-Term Management Plan (P.26)
11
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
Value Creation Process
OUTPUT
OUTCOME
IMPACT
Ideal State for 2030
A community-based global company that brings
"finance closer to everyone"
Exerting diversity and the potential of our people P.42
Respecting the diversity of employees and creating a flexible and rewarding work environment
Financial
Consolidated Operating Profit ¥61.4billion
Profit Attributable to Owners of Parent
¥15.6billion
ROE 3.4%
Dividend ¥53/year
(Payout ratio 73.1%) Consolidated Finance Receivables
¥5,421.2billion
(including securitized receivables)
¥8,096.9billion
Value Provided
AEON Financial Service Co., Ltd.
Financial services tailored to life cycles
Leveraging the AEON Group's strengths to provide optimal services to each customer through real and digital channels
Improving access to financial services
Promoting the democratization of financial services to make them available to more
Integrated Report 2025
Services Provided
Employment rate of people with disabilities (Domestic) 2.67% Rate of male employees taking childcare leave (Domestic) 96.0% Employee engagement score Domestic 43.8, Overseas 73.9
Establishing Organizational Resilience P.52
Non-financial
Percentage of managerial positions filled by women (Assistant manager equivalent or above) 33.9%
Building a governance structure that enhances trust with stakeholders
BCP drills conducted (Domestic) 4times/year (AEON Group joint training 2 times/year, AFS Group joint training 2 times/year) Compliance training participation rate for fostering governance awareness Group total 97.57%
Percentage of employees in international departments
70.1%
Using
Investing
Saving
Preparing for the Future
Borrowing
Managing Assets
Addressing climate change
P.69
Greenhouse gas emissions
(Scope 1 & 2 Total) Change from FY2023
-1,214 tons
(Scope 3) Emissions from credit card paper statements Change from FY2023 -4,830 tons Participants in environmental conservation activities
(Domestic) Total 4,692
Contributing to the development of local communities through financial services
Municipalities contracted for hometown tax site My Full
Approx. 1,000
Municipalities/organizations issuing Gotochi Waon 186
(As of the end of August 2025)
Enriching the lives of customers, business partners, and employees through financial education
Financial education participants
50,537 (Domestic: 42,853, Overseas: 7,684)
Pursuing happiness through innovative financial services P.37
12
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
AEON Financial Service Co., Ltd.
Integrated Report 2025
13
Why do we do it, and why can we do it?What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Realization of Our Purpose
Our purpose is "to bring finance closer to everyone. By committing to each and every person, we brighten up everyday lives with peace of mind and smiles."
We will provide innovative and comprehensive financial services to realize this purpose.
2023 Establishment of Our Purposea
2023-2024: Instillation
2025 (Current): Practice
Why do we engage in the comprehensive financial business?
To realize Our Purpose
Our purpose is to bring "finance" closer to everyone. By committing to each and every person,
we brighten up everyday lives with peace of mind and smiles.
1Initiatives for Instilling Our Purpose
After establishing Our Purpose, we shared its
concept by distributing videos and held town hall meetings to consider what is needed to embody it and to build deeper understanding.
In FY2024, we conducted dialogues regarding the AEON Foundational Ideals, AEON Group Future Vision, and Our Purpose at each Group company and department, continuing our efforts to instill Our Purpose.
2Understanding, Empathy, and Practice of PurposeAEON Financial Service Co., Ltd.
We are conducting activities to deepen the
understanding of Our Purpose and connect it to action at each company and department. To think about how to proceed in the future, we conduct workshops and meetings in each department, where employees verbalize their
Integrated Report 2025
own "My Purpose" and engage in dialogue with members, working towards the embodiment of Our Purpose.
Purpose Awareness
Purpose Understanding
Domestic Group Total 96% 76%
Please refer to our website and Integrated Report 2023 P.7-10 for the background of the formulation of Our Purpose, the concept, and the path to its formulation.
Our website
https://www.aeonfinancial.co.jp/en/purpose/
Integrated Report 2023 P.7-10
https://www.aeonfinancial.co.jp/-/media/AeonGroup/Aeonfinancial/Files/en/ir/library/annual/2023/Integrated--Report2023.pdf
Overseas Group Total 79% 60%
Town Hall Meeting Workshop My Purpose Card
Please see P.43-44 for practical examples of Purposes in the field.
14
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Message from the President and CEO
Through increased profitability and sustainable business operations, we aim to evolve into a financial group that continues to be chosen by consumers
Determined to do my best as President and CEO
In May 2025, I took office as President and CEO of AEON Financial Service Co., Ltd. I joined AEON Financial Service as a new graduate in 1997, and after working at branch offices,
President and CEO
Tomoharu Fukayama
I joined the corporate planning department, where I spent many years. I also gained valuable opportunities to oversee the diverse business operations of the AEON Group as a whole when I was seconded to the parent company, AEON Co.,
Ltd. These experiences have deepened my understanding of the AEON Group's businesses and strategies and refined my management perspective.
Starting in 2015, I served as a General Manager of the Sales Division at AEON CREDIT SERVICE (ASIA) CO., LTD.,
our subsidiary listed on the Hong Kong Stock Exchange, and then as its Managing Director since 2020. Under the unprecedented circumstances of the COVID-19 pandemic, expanding market share and business growth became major challenges. However, by adhering to a locally rooted, on-the-ground approach and focusing on developing local talent and fostering a self-driven organization, we were able to steer the company back onto a growth path.
In 2024, I handed the baton to locally nurtured talent in Hong Kong, and just as I was preparing, as the project team leader to expand our financial business in the growth market of Vietnam as my next challenge, I was asked to assume the position of President and CEO of AEON Financial Service. This took me by surprise, but I resolved to face the new challenge and mission with strong determination.
Even while involved in the management of overseas subsidiaries, I have always worked with an awareness of the challenges facing the AFS Group as a whole. Now I am ready to face the challenges head on and steer the AFS Group towards sustainable growth. Under the new medium-term management plan starting in fiscal 2026, we will steadily acquire the earning power required to achieve renewed growth.
Awareness of the external environment
AEON Financial Service Co., Ltd.
The external environment changed dramatically from the start of the current medium-term management plan "Transformation Phase" (fiscal 2021-2025) and through the COVID-19 pandemic. With the rapid advancement of digital technology, a significant portion of people's communication is now conducted via the internet and other non-face-to-face settings. In the financial industry, smartphone payments account for more and more cashless payments, and financial products such as investment trusts and insurance that meet capital needs are rapidly shifting to smartphone-based services. At the same time, fintech companies are entering the market as new players, intensifying competition even further.
Integrated Report 2025
In Japan, the zero interest rate policy that lasted for more than 20 years came to an end, returning us to "a world with interest rates." The end of the COVID-19 pandemic has brought renewed appreciation for the value of real-world spaces. Customers now alternate between the convenience of digital services and the reassurance of in-person experiences, depending on their needs at the time.
In Asian countries, local companies are becoming larger and larger, and their expansion across borders is accelerating. These companies are increasing their presence by combining their strengths rooted in the local community with digital capabilities. In addition, new digitally enabled financial services, operating under an agile development framework, are allowing companies to respond flexibly and rapidly to changing needs and expand their service across various regions, transcending borders and cultural barriers.
In response to rapid environmental changes such as these, the AFS Group, while aiming to be a one-stop comprehensive financial services provider, has advanced initiatives such as opening a digital bank in Malaysia and building overseas credit and collection systems using AI. However, as an environment is being put into place that allows the selection of increasingly
15
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Message from the President and CEO
optimal services in various spheres of daily life, including communications, the hard truth is that the AFS Group has not been able to fully demonstrate its uniqueness and advantages as a financial group with its origins in the retail industry.
Our reason for existence
As its vision of Ideal State for 2030, the AFS Group aims to be "a community-based global company that brings 'finance' closer to everyone." This is a vision to become an
indispensable presence for consumers in the field of finance
services that are easy to use for customers of all ages. We aim to continue supporting our customers throughout their lives by working in collaboration with partner companies to provide a wide range of financial services tailored to every stage of life.
I also envision a scenario in which we grow into a company that is chosen by consumers all around the world through a "glocal" (global + local) approach that deploys global knowledge while optimizing it for the local community. I am convinced that being a company that stays close to our customers' needs and continues to be chosen by them is the very reason for the AFS Group's existence and also helps to enhance our social value.
Furthermore, with the bundling of financial services and the shift to digital platforms, we are entering an era in which retail finance is evolving to respond precisely to the diverse needs of customers. Major banks are also making big shifts in their channel strategies, such as relocating branches
AEON Financial Service Co., Ltd.
that were previously located in front of train stations to commercial facilities, opening specialized branches that offer a narrower range of services, and making business hours more flexible. Similarly, AEON Bank, Ltd. will review its touchpoints with customers, optimize channels to meet diversifying needs, and restructure store formats to suit the characteristics of each location.
by embodying the AEON Foundational Ideals: pursuing peace,
respecting humans, and contributing to local communities, always with customers as our starting point. The AEON Foundational Ideals are not just about pursuing convenience, but about always putting ourselves in the customer's shoes and acting with integrity. We continue to rethink the way financial services should be provided, with these ideals as the standard for all our judgments and actions.
Our Purpose, as formulated by the AFS Group, serves as a guide for realizing the AEON Foundational Ideals through finance. In addition, we have identified four key issues (our materiality) from the perspective of sustainability and set key indicators to be achieved by 2030. Up to now, the AFS Group has been able to get closer to customers and put our Ideal State of bringing "finance closer to everyone" into practice
through measures such as providing credit services accessible to everyone and developing a bank that makes it easy to visit anytime, seven days a week.
Going forward, we aim to provide services that meet the diverse needs of each region, to become truly community based, and to make maximum use of digital technology to deliver a highly convenient financial experience that is not bound by time or place. Nowadays, people of all ages-from children to seniors-use cashless payments. AEON Group's services are often used by families, but we also strive to meet the needs of the younger generations and provide
Medium- to long-term outlook
My view of the medium- to long-term business environment is captured by two phrases: "structural changes in payments" and "the evolution of retail finance."
The current payment network involves a wide range of players, including international brands and authentication systems, resulting in a high cost structure. However, it is expected that payments will undergo significant structural changes with the proliferation of blockchain technolo-
gy-based digital financial services such as CBDCs (central bank digital currencies), stablecoins, and tokenized deposits. This is expected to significantly reduce the burden of processing fees on merchants, expand cashless locations, and improve user convenience. On the other hand, traditional payment businesses are likely to be forced to undergo structural transformation. Going forward, I believe it will be essential to expand our lending offerings to meet the diverse needs of our customers and secure new, stable revenue sources. To secure efficient and stable revenue sources in such an environment, we are encouraging customers in Japan to use their accounts for everyday transactions, centered on our AEON Pay smartphone-based payment service.
Management vision
Integrated Report 2025
To achieve this vision, we have set a clear direction: in Japan, we will shift management resources to smartphone-based payments, lending, and banking businesses, while in Asia we will pursue renewed growth. By promoting these strategies
in tandem with strengthening compliance, governance, and internal controls, we will steadily increase our earning power.
First, in Japan, we will adapt to structural changes in payments by shifting management resources to our AEON Pay smartphone-based payment service. With AEON Pay at its core, we will build a new payment infrastructure that balances convenience and profitability by expanding our merchant network, optimizing payment costs, and leveraging blockchain technology.
16
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Message from the President and CEO
In the lending business, we will fully leverage the advantage of having a bank and, by expanding diverse lending services that transcend the boundaries between banks and non-banks, meet a wide range of financing needs to strengthen our revenue base. Although we hold the top share in the domestic card cashing market, monthly transaction volume is below its peak. However, when it comes to generating profits in "a world with
AEON Bank will promote as major initiatives the use of its accounts for everyday transactions centered on AEON Pay, the restructuring of store formats, and improved convenience through the integration of digital and physical channels.
Furthermore, since both credit card and banking services are, for our customers, financial services of the AEON Group, we will manage our business in an integrated manner across company boundaries, aiming to provide a highly convenient one-stop service, while leveraging our strength in deposit collection and focusing on low-cost procurement.
To achieve renewed growth in Asia, we will accelerate the shift from a head office-led to a locally-led management structure. To achieve this, we will recruit outstanding local talent and develop a brand strategy rooted in the local community with the goal of evolving into "a regional brand of choice" in Asia. When allocating resources, we will comprehensively consider each country's economic growth, trends in financial regulation, the competitive environment, and the potential for synergies with the AEON Group, and then deploy resources as appropriate
to countries and regions where business growth is expected. For the time being, we will designate Malaysia, Vietnam, and Cambodia as priority areas and intensify our efforts there.
Regarding the business improvement order issued by the FSA to AEON Bank and the improper accounting practices discovered before the acquisition of equity in PTF, I acknowledge that one factor was the inadequacy of our oversight
AEON Financial Service Co., Ltd.
of subsidiaries, which is our responsibility as the parent company. We are reflecting seriously on these incidents and strengthening the Group's governance framework by clarifying officers' responsibilities, enhancing oversight functions, and optimizing approval and reporting systems. By working to strengthen governance, we will make our growth potential even more certain and robust.
Integrated Report 2025
Regarding fraudulent use of AEON Cards, I acknowledge that the widespread harm was exacerbated by our delay in taking measures to protect our customers against attacks employing new tactics by malicious third parties. In addition to strengthening our fraud detection and monitoring systems through the establishment of specialized units, we are continuously working to eliminate and prevent fraud by cooperating with companies across the industry and related organizations.
We will strive to ensure a strong sense of governance and compliance across the entire AFS Group, so that we will never again lose the trust of our stakeholders.
interest rates," it is clear that lending is important, and I believe
this is the area where we should focus our efforts. Therefore, we will separate our lending business into an independent division and strategically expand our lending products for individuals and corporations. In particular, we will focus on financial solutions linked to payments, such as cash flow support and instant deposit services for affiliated merchants, in order to build a stable revenue base.
Our mission is to provide financial services that consumers can use with confidence. Loans, installment payments, and revolving credit are important tools that help customers balance their income and expenses, and they constitute socially valuable services. We will therefore make strengthening our lending business-a financial service that enriches consumers' lives-our top priority.
Returning to its origin as "the bank closest to consumers,"
Strengthening Group governance
I offer my deepest apologies to all our stakeholders for the inconvenience and concern caused by the recent incidents, including the business improvement order AEON Bank received from
the Japan's Financial Services Agency (FSA), the discovery of improper accounting practices prior to the acquisition of equity in the Vietnamese finance company Post and Telecommunication Finance Company Limited (PTF; now AEON Consumer Finance Company Limited), resulting in postponement of the announcement of the Financial Results for the First Quarter of the Fiscal Year ending February 28, 2026 (fiscal 2025) and restatement
of the prior fiscal year's financial statements, and the growing number of cases of fraudulent use of AEON Cards.
Strengthening human capital
Since we are particularly understaffed with experts in areas such as digital transformation (DX) and sustainability in Japan, we are focusing on developing personnel who combine digital and financial skills through re-skilling and up-skilling of existing employees. To implement the strategic direction described
17
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Message from the President and CEO
above, DX personnel are essential, and this is the area where securing talent is most ncessary.
In addition, under the policy of providing greater opportunities to take on challenges for those with the motivation and ability regardless of age or gender, we will support self-directed career development and also focus on cultivating the next generation of leaders. I would like the young people who will lead the next generation to have a greater interest in and awareness of overseas markets, which is where the growth will be. To that end, we will provide more opportunities to address challenges at our overseas subsidiaries and work to develop personnel who will lead the AFS Group's initiatives with a global perspective.
Given the current situation overseas, where there is a shortage of personnel with extensive global experience, we will focus on developing outstanding local employees working at local subsidiaries into global talent by expanding their education and training opportunities and instilling in them the Group's shared values. In the medium to long term, we will promote the development of "global talent management," which places the right people in the right positions across national and regional boundaries, while striving to diversify our global decision-making team and build a system that better reflects local voices in management.
Furthermore, given that the AFS Group has a large number of female customers, we believe that the perspectives and viewpoints of female employees are important to management. Based on this idea, we have set a goal of increasing the percentage of managerial positions filled by women across the entire AFS Group, both in Japan and overseas, to 40% by fiscal 2030.
To develop the human resources that will support the sustainable growth of the AFS Group, it is essential to develop a work environment in which each employee can feel motivated, proud, and rewarded by their work. We will continue to conduct employee engagement surveys and analyze employee expectations of the company and satisfaction levels, striving to create a workplace culture and environment in which employees can work with high motivation.
To all our stakeholders
I believe that our most important task in aiming for renewed growth is to break away from the current situation of being on the defensive and drained of vitality. We have experienced our share of failures in the past. As a result, I feel that our willingness to take on challenges has declined due to an excessive fear of failure. This is really a case of "once bitten, twice shy."
In the past, AEON Financial Service was filled with a strong passion for challenge and an animal spirit that drove our growth. If we adopt an attitude that equates remorse for past issues with not taking on new challenges, we will not be able to survive in the financial industry, which is currently undergoing major changes. I believe my primary responsibility is to restore a culture of proactively embracing challenges-learning from past mistakes but not letting them immobilize us. Therefore, when I became President
and CEO, I asked all employees to "reflect on past mistakes, but do so correctly."
When I joined AEON Financial Service, it was during a period of significant growth. As the organization expanded both vertically and horizontally, even young employees were forced to take on unknown challenges without having time to worry about whether they could do it or not. In that kind of environment, the people who volunteered to take on
challenges and achieved results were the most highly valued, and even if they failed, people who took action on their own were valued more than people who achieved results only after following instructions. There was a strong culture of "action first," with people saying things like "Let's just try it" and "Let's encourage people to take on challenges." Looking back, I myself have been entrusted with responsible roles from a young age and have had the opportunity to grow by facing challenges. AEON is an organization with a culture that values a spirit of challenging oneself, and I myself will strive to exemplify the culture of taking on challenges.
Toward improved capital efficiency
AEON Financial Service Co., Ltd.
Before the COVID-19 pandemic, our PBR stayed above 1x, but it is currently well below that level. The main causes were declines in ROE and confidence in future growth. I am keenly aware that a drastic improvement in capital efficiency is an urgent issue.
In response to this challenge, we will work with a sense of urgency to make improvements, such as shifting from
Integrated Report 2025
a card-centered business model to a smartphone-based model, reviewing our business portfolio, and growing the recurring-revenue base. Let me reiterate that in addition to making every effort to restore the trust of our stakeholders, I am determined to ensure a return to a growth trajectory in the next medium-term management plan, while prioritizing highly transparent information disclosure and proactive dialogue with the capital markets. To all our stakeholders, I sincerely ask for your continued support and encouragement.
18
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Our Uniqueness & Strengths
As a comprehensive financial group with its origins in the retail industry, the AFS Group has continued to grow by developing financial services closely attuned to local communities and lifestyles across Asian countries, including Japan, thereby bringing "finance closer to everyone."
Our Uniqueness & Strengths 1
AEON Financial Service Co., Ltd.
Utilization of AEON Group Infrastructure
The AFS Group is responsible for the Financial Services Business, one of the eight core businesses of the AEON Group. In addition to AEON's brand strength and its store network across Asian countries, we are developing our business by leveraging the wide-ranging financial expertise that we have cultivated since our founding, including in credit cards and banking.
Financial
AEON Group by the Numbers
Stores/Locations 18,086
Integrated Report 2025
stores/locations
Supermarket Business
Services Business*
Health & Wellness Business
General
Merchandise Store Business
Creating AEON Living Zone rooted in the local community
Discount Business
AEON Group and AEON Financial Service
Number of countries where the
International
Service &
Shopping Center
9 countries
*Including Japan
Business
Specialty Store Business
Development Business
AEON's
Equipped with AEON Pay as a payment tool
15 million
*The Financial Services Business includes the AFS Group, in addition to AEON Reit Management Co., Ltd.
*Figures as of the end of February 2025.
integrated app, iAEON Cumulative downloads
downloads
19
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Our Uniqueness & Strengths
Our Uniqueness & Strengths 2
Creation of Numerous Industry-First Innovative Services
AEON Financial Service Co., Ltd.
We have expanded our business by providing innovative services unbound by preconceived notions, such as launching the industry's first gold card with no annual fee and introducing signature-free credit card payments in food departments.
On May 26, 2024, we launched Malaysia's first digital bank based on the Islamic financial system. In Malaysia, where Muslims comprise more than 60% of the population, the advancement of Islamic finance rep-
resents one of the Central Bank's medium-term priority initiatives.
We are working to create an environment where financial services are easily accessible to all by providing a financial system based on Islamic principles through smartphone apps, which are the most familiar digital touchpoints.
Our Uniqueness & Strengths 3
On June 26, 2025, we launched a new service that integrates the AEON Pay code payment system with the WAON e-money card.
with a single touch
Code payment
This feature allows users to freely transfer balances between AEON Pay and WAON, enabling payments at merchants affiliated with either service. As a result, the number of locations where these payment options can be used has expanded to approximately 4.3 million.
This service, which allows users to easily transfer balances stored on servers and IC chips via an app, is the first of its kind in Japan and has been approved for a patent.
Consolidated in June 2024
From June 26, 2025
Contactless payment
Balance transfer
Integrated Report 2025
Community-Based Business Development
Provision of community currencies and municipal apps
Based on the AEON Foundational Ideals of "Pursuing peace, respecting humans, and contributing to local communities, always with customers as our starting point," we offer financial services tailored to meet regional needs.
Expansion of Regional Collaboration
We provide financial services closely attuned to local communities, including My Full, a hometown tax site that contributes to the development of the regional economy, as well as solutions such as community currencies and regional points offered by FeliCa Pocket Marketing Inc. For the WAON e-money card, we issue Gotochi WAON, which donates a portion of each transaction to local communities as part
Opened in September 2023
Hometown tax site
Approx. 1,000
152
projects
186
types
Acquisition of Value Issuer Business in February 2025
Gotochi WAON
of an initiative to connect customers' everyday shopping with regional revitalization. In June 2025, we expanded these Gotochi (local) functions to also allow donations through AEON Pay charge payments.
municipalities
(As of the end of August 2025)
20
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
Our Uniqueness & Strengths
Our Uniqueness & Strengths 4
Overseas operating receivables exceeded 1 trillion yen
Global Expansion Centered on Asia
China Area
Listed company
We have helped establish the trust of both Japan and the overseas market through community-based business development, thereby expanding our global presence. By providing innovative services that meet regional needs and supporting customers' daily lives across Asian countries, our operating receivables in overseas markets have exceeded 1 trillion yen.
Japan
(1980)
Mekong Area ■ Malay Area
*1 Years inside brackets denote year development began
*2 Light-colored icons denote operations in progress.
(Billions of yen)
AEON Financial Service Co., Ltd.
1,000.0
Thailand
(1992)
India
(2011)
Myanmar
(2012)
Malaysia
(1996)
Cambodia
(2011)
Laos
(2012)
Philippines
(2008)
Indonesia
(2006)
*Products and services offered only in Japan: Leasing and Small-amount short-term insurance
Vietnam
(2008)
China
(2000)
Hong Kong
(1987)
800.0
21
Integrated Report 2025
600.0
400.0
200.0
Trends in Overseas Operating Receivables
*Figures for FY2008 and earlier are calculated based on the difference between consolidated and non-consolidated operating loans and accounts receivable - installment.
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2011
2012 2013
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (FY) 0
AEON Group Stores
Credit Card
Bank
E-Money (Prepaid)
Installment Finance
Personal Loan
Insurance Agency
Servicer
Share Points System
BNPL
System
*Businesses developed as of October 2025.
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
Message from Our Overseas Listed Subsidiaries Representative
Message from Our Overseas Subsidiaries Representative
AEON CREDIT SERVICE (ASIA) CO., LTD.
Shaping the future through finance rooted in Hong Kong
Don't just continue as is, One step back to roots
Topics The future of the AEON Living Zone, expanding through finance
AEON Financial Service Co., Ltd.
Managing Director
To deliver unique value and earn our customers' trust, we are collaborating with AEON Stores (Hong Kong), which operates the GMS business, to further develop AEON Living Zone.
AEON is a brand deeply rooted in Hong Kong and cherished by its people. Our goal is not only to
Creation of the AEON Living Zone
Retail
Common
Wei Aiguo
AEON CREDIT SERVICE was founded in Hong Kong in 1990 and has grown steadily since its inception. As we celebrate our 35th anniversary, we offer a comprehensive range of financial services, including credit cards, personal loans, merchant acquiring, and insurance agency services through our operations in Hong Kong and our subsidiar-
provide payment and financing services for AEON shoppers, but also building a platform that connects AEON with partner companies, enhancing everyday convenience through new bonus points and loyalty programs. Looking ahead, we aim to expand this living zone beyond Hong Kong to Japan and the Greater Bay Area (GBA)* to meet customer needs.
*Greater Bay Area: A region that connects Hong Kong, Macau,
Partner companies
points program
Insurance
Loans
Payments
Cards
ACS (ASIA)*
ies in Shenzhen China, we continue to serve the diverse needs of local customers.
Hong Kong is one of the most densely populated cities in the world, where com-
petition is fierce as companies rapidly introduce new services to attract and retain. 22
Integrated Report 2025
In this challenging environment, we are committed to the following initiatives to strengthen customers trust and reinforce our presence as a financial institution that is part of everyday life.
Growth trajectory | Operating revenue 35th anniversary of establishment | |
(million HKD) 1,759 Expansion into Shenzhen, China Listed on the Hong Kong Stock Exchange Established (FY) 1990 1995 2000 2005 2010 2015 2020 2024 | ||
and nine other cities in the Guangdong Province.
*ACS (ASIA): AEON CREDIT SERVICE (ASIA) CO., LTD
Drive digital transformation through AI and others advanced technologies; Diversify our customer base with a focus on younger generation; Strengthen governance and operational practices to drive profitability while reducing risk exposure; and
These initiatives are grounded in the AEON Group's Foundational Ideals: "pursuing peace, respecting humans, and contributing to local communities, always with customers as our starting point." Bringing these principles to life in Hong Kong and across the region.
Staying true to the spirit that guided us 35 years ago, we will continue to challenge ourselves making every effort to achieve stainable growth that brings joy to our customers, shareholders, communities, and employees.
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Message from Our Overseas Listed Subsidiaries Representative
AEON THANA SINSAP (THAILAND) PCL.
Building a robust, yet compassionate financial system that supports the future of Thailand with the power of digital technology and coexistence
Topics Financial services focused on the future - eliminating the use of paper and plastic
Message from Our Overseas Subsidiaries Representative
Aiming to be digital, sustainable, and leaving no one behind
-Providing financial services that support the future of Thailand.
AEON Financial Service Co., Ltd.
Managing Director
We are actively tackling digitalization in order to quickly respond to changes in society and customer needs. In November 2024, we issued a completely digital credit card that does not use a physical plastic card. This service, which considers both convenience and the environment, has been favorably received, especially by the younger generation.
In addition to providing products and services, we are conducting environmentally conscious and sustainable events, including hosting a digital Loy Krathong (lantern floating) festival that can be participated in via a mobile device, utilizing digital technology to preserve tradition while minimizing waste.
Examples of digitalization initiatives in Thailand
Digital Loy Krathong (lantern floating)
PRIMO digital credit card
Toshiya Shimakata
In 2024, the Thai economy demonstrated a slight acceleration in GDP growth compared to the previous year due to a gradual recovery in exports and tourism; however, the recovery in private consumption and investment remains sluggish, and high household debt along with weak inflation are still burdens on the economy. Moreover, awareness of human rights and environmental protection is rapidly gaining momentum. While
we are making progress towards becoming a society that respects diversity through the legalization of same-sex marriage and the promotion of anti-discrimination laws,
Integrated Report 2025
measures to address air pollution and plastic waste are also being strengthened, leading society as a whole to shift towards prioritizing sustainability and equity. In addition, the government is spearheading the promotion of digitalization and online services, making convenience and transparency important factors as well.
We are advancing the digitalization of our services to quickly respond to the changes in Thai society and our customers' needs, endeavoring to balance conve-
Growth trajectory Operating revenue
(million THB)
Reorganization resulting in three companies (non-life insurance company, life insurance company, and collection company) becoming subsidiaries
22,102
nience and sustainability while working to solve social issues. In addition, regarding the issue of household debt, we are participating in the debt relief support program called You Fight, We Help, led by the Bank of Thailand, and are actively working to
Acquisition of credit card issuance license
Listed on the Stock Exchange of Thailand
Established
address this social problem.
Since our establishment in 1992, we have consistently provided services rooted in the lives of people in the community, upholding our mission to support our customers' daily lives in every era. Going forward, we will continue to respond to the needs of
our customers in Thailand and provide financial services that assist in their day-to-day lives, practicing "Our Purpose" and aiming to be the most supported company by customers in Thailand.
(FY)
1992
1995
2000
2005
2010 2015 2020 2024
23
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Message from Our Overseas Listed Subsidiaries Representative
AEON CREDIT SERVICE (M) BERHAD
Changing lifestyles beyond the boundaries of finance
-Taking on the challenge of the AEON Living Zone from Malaysia
Message from Our Overseas Subsidiaries Representative
Utilizing digital technology to bring "finance" closer to everyone
-Providing future lifestyles
Topics Creating AEON's "super app" to support everyday life
In April 2025, we revamped the smartphone app AEON Wallet. The points earned from shopping at AEON stores and the points earned from credit card usage have been integrated into AEON Points, making it easier for points to be accumulated. Additionally, a new membership status system has been introduced, granting various benefits based on the number of points earned. In the future, the plan is to have various benefits provided by AEON Group companies based on the status.
While AEON Wallet mainly offers various financial services, we have plans to turn it into a super app for the AEON Living Zone by utilizing customer shopping data in collaboration with the AEON Group, with hyper-personalized services to be provided from the AEON Group and partner companies in the future.
Growth trajectory
Launch of a digital bank
Operating revenue
(million MYR)
Listed on Bursa Malaysia
The first non-bank acquisition of credit card issuance license
Established
2,201
Managing Director
AEON Financial Service Co., Ltd.
Daisuke Maeda
Integrated Report 2025
In 1996 we started an installment payment business for household appliances in Malaysia, driven by economic development and increasing demand, and we have expanded this business to include motorbikes, which are essential daily items. We strive to provide financial solutions in collaboration with participating merchants for customers who find it difficult to access traditional bank loans. In recent years, in response to changes in customer demand, we have been advancing our transformation into a comprehensive financial company by expanding into payment businesses such as credit cards and digital wallets via smartphone apps, as well as the insurance agency business and the digital bank business.
Currently, in Malaysia, economic growth and changes in lifestyle are leading to rising incomes, a shift to online services, the penetration of cashless payments, diversification of lifestyles, and the entry of platform companies into the financial sector, thereby driving expectations for services that go beyond traditional financial products.
In such an environment, we are enhancing the AEON Wallet smartphone app, and in addition to virtual card issuance, loan applications, and insurance purchases, we are working towards achieving one-stop financial services by providing installment credit limits to members and introducing a shared domestic QR payment system in the future. Moreover, we have introduced a membership status system for the AEON
Points program that we operate, and we have begun displaying this on the app. Based on purchasing data from AEON and other sources, we plan to establish a system that allows us to provide various personalized offers.
Using the AEON Wallet as a touchpoint, we will work to provide Group customers with "future lifestyles" while realizing Our Purpose: Bring "finance" closer to everyone.
(FY)
1996
2000
2005
2010 2015 2020 2024
24
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
AEON Financial Service Co., Ltd.
Integrated Report 2025
25
How do we do it?What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
Medium-Term Management PlanOur goal is to contribute to the construction of an AEON Living Zone that transcends the AFS Group's financial products and services, and customer base by connecting customers, local communities, business partners, affiliated merchants, and AEON Group companies with our financial services, including payment and point systems.
AEON Financial Service Co., Ltd.
The Company has established a medium-term management plan (FY2021-FY2025) to realize the Ideal State for 2030: "A community-based global company that brings 'finance closer to everyone.'" Guided by the basic policy of "Second Founding: Value Chain Transformation and New Network Creation," we position this period as a Transformation Phase to solidify future corporate growth. During this phase, we are reviewing and optimizing our business portfolio in response to changes in the business environment and building new business models that leverage digital technology.
Overview of Medium-Term Management Plan
(FY2021-FY2025)
Second Founding
Basic Policy
Value Chain Transformation and New Network Creation
FY2021~FY2025
Transformation Phase
Business Portfolio Review to
FY2026~
Growth Phase
Provision of financial
Ideal State for 2030
Integrated Report 2025
A community-based global company that brings
"finance closer to everyone"
26
Main Initiatives
P.29
Drive Growth
P.27,28
services rooted in each region in overseas expansion countries, mainly in
Domestic
~FY2020
Expansion Phase
Expansion of membership
Global
Creating infrastructure for the construction of AEON Living Zone
Taking the needs of local customers' living infrastructure
Increasing risk and cost control capabilities
Comprehensive financing of
Promoting selection and concentration for optimal allocation of management resources to key areas
Asia
Implementing digital financial inclusion in each country Expansion of business, products offered, and expansion areas
Area strategy planning that responds to the
differences in needs between cities and regions
To be a company that supports the lives of each and every one of our customers by resolving their "inconveniences"
domestic business (Commencement of banking and insurance business)
Expansion of overseas countries
Strengthening Expanding Core Areas Growth Areas
Medium-term Target Indicator
Aim to achieve and maintain
ROE of 10.0% or more by strengthening profitability and increasing capital efficiency
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Medium-Term Management Plan
Business Portfolio Review to Drive Growth
In response to changes in the business environment and customers' lifestyles, the Company is proceeding with a review to optimize its business portfolio. By appropriately allocating resources to both core and growth areas, we aim to drive further improvement in corporate value going forward.
Strengthening Core Areas
Strengthening payment, lending, and banking businesses
Achieving economies of scale and expanding the revenue base by strengthening payment infrastructure
Domestic
Expanding Growth Areas
Building new business models leveraging digital technology
Entering new areas and creating new businesses
Overseas
Focus Areas
Progress of Selection and Concentration Toward Optimal Business Portfolio
New Investment
New businesses for further growth and strengthening expansion areas
Aggregation
Overall optimization for efficient business operations
Collaboration, Transfers, etc.
AEON Financial Service Co., Ltd.
Resource optimization by leveraging external resources and business transfers, etc.
Jun. 2023
Integration of AEON Credit Service Co., Ltd. into the Company
Acquisition of
Integrated Report 2025
FeliCa Pocket Marketing Inc.
Jan. 2024
Feb.
Mar.
May
[Malaysia]
Opening of AEON BANK (M) Berhad
Acquisition of Kyoei A&I Co., Ltd.
Collaboration with Monex, Inc.
Collaboration with Orient Corporation and transfer of AEON Product Finance Co., Ltd.
FY2024 Q2
Feb. 2025
[Vietnam]
Acquisition of Post and Telecommunication Finance Company Limited*
Acquisition of
WAON Value Issuer Business
[Myanmar]
Decision to dormant status of local subsidiaries
[Philippines]
Decision to withdraw from finance business
Jul.
Sept.
Investment in fintech company AND Global Pte. Ltd.
[Malaysia]
Establishment of AEON360 Sdn. Bhd.
Collaboration with Meiji Yasuda Life Insurance Company and transfer of shares in AEON Allianz Life Insurance Co., Ltd.
*Trade name changed to AEON Consumer Finance Company Limited in October 2025.
27
Medium-Term Management Plan
What do we do? Why do we do it, and why can we do it? How do we do it? Data / Company Information
Details of Business Portfolio Review
New Investment Aggregation Collaboration, Transfers, etc.
Vietnam
Acquisition of Finance License
In February 2025, we acquired an equity interest in the finance company PTF*, making it a subsidiary.
Vietnam, with its large young population, is expected to maintain strong economic growth. The market for personal financial services is also achieving dramatic growth against the backdrop of an expanding middle class. The AEON Group positions Vietnam as a key country in its overseas strategy, with various business formats strengthening its expansion. Leveraging customer touchpoints and purchasing data across the Group's store and service network, the Company aims to achieve diverse funding and financial needs, including payments.
Alongside the membership base established through the shared point service launched in 2024, we plan to introduce a digitally completed post-paid payment service focused on smartphones in FY2026. Over the next 10 years, we aim to become a leading player in Vietnam's credit industry by reaching 3 million payment members.
*PTF: Post and Telecommunication
Integration of Payment Centered on Smartphones
Aggregation of WAON Business
In February 2025, we aggregated the issuing business of the AEON Group's e-money WAON (Value Issuer Business) for the purpose of improving business operation efficiency through the aggregation of management resources and strategic investment.
WAON was established in 2007 and has been widely embraced as a pre-paid e-money service, with a cumulative total of 108.44 million cards issued and acceptance at 1.55 million merchant locations. In June 2025, we integrated AEON Pay with WAON, adding functions such as
balance transfers between AEON Pay (code payment) and WAON (contactless payment) and extending the Gotochi WAON function, where AEON donates a portion of each transaction to local governments, to AEON Pay. Leveraging the strengths of both payment methods, we will work
to expand our customer base centered on smartphones, which are most closely connected to customers' daily lives, and create a more valuable customer experience.
*Figures as of the end of August 2025.
Deepening Collaboration with Strategic Partners
AEON Financial Service Co., Ltd.
In reviewing our business portfolio, we are promoting collaboration with strategic partners, including business transfers, to continue providing new value that meets customer needs and drives sustainable growth in a rapidly changing business environment.
In March 2024, we concluded a basic agreement regarding a business alliance with Orient Corporation ("Orico") and, as part of this, we transferred our installment finance business to Orico. In October 2025, we launched the AEON Business Card for sole proprietors, corporate representatives, and SMEs.
Earlier, in March 2025, we signed a comprehensive
partnership agreement with Meiji Yasuda Life Insurance 28
Company ("Meiji Yasuda") and completed the transfer of
Integrated Report 2025
our life insurance business in July of the same year.
In partnership with both companies, we will leverage our respective strengths to drive collaboration across diverse areas and unlock greater synergies.
Finance Company Limited Trade name changed to AEON
Consumer Finance Company Limited in October 2025.
Payment Members: 600,000
Point Members: 10 million
Launch of digitally completed post-paid payment service
Point Members
3 million
No. 1 Market Share Payment Members: 3 million
Point Members: Over 20 million
"Project Story Leading Up to the Launch of New AEON Pay" (P.33)
WAON Value Issuer Business
Comprehensive Partnership with Meiji Yasuda
Co-Creation of New Value through Data Utilization
Joint Operation of Card Business
Health Promotion Support
2025 2029
(5th year)
2034
(10th year)
What do we do?
Why do we do it, and why can we do it?
How do we do it?
Data / Company Information
Medium-Term Management Plan
Progress of Key Initiatives
For the key initiatives outlined in the medium-term management plan, we have been developing the necessary infrastructure for the future, including the unification of the point system that serves as the axis of the AEON Living Zone and the construction of new digital touchpoints.
AEON Financial Service Co., Ltd.
Integrated Report 2025
By reinforcing the strengths we have cultivated since our founding, we can deliver value that is distinctive to the AFS Group and maintain steady growth.
Domestic Creating Infrastructure for the Construction of the AEON Living Zone
Amidst changes in customers' lifestyles and the competitive environment, we are working on transforming our customer touchpoints
by focusing on digital wallets accessed via smartphones, which serve as the most familiar interface to customers.
For AEON Pay, our code payment system, in addition to credit card payments and bank account charging, we expanded its functions to allow cash charging at ATMs and promoted new usage. As
a result, the number of members is increasing steadily. In FY2025, we are promoting the expansion of payment infrastructure with the goal of adding 1 million new merchant locations, enabling customers to use our services more routinely.
Expansion of AEON Pay
Acceptance
Over 4 million merchant locations (+1 million)
Target
Locations
3.03 million merchant locations
FY2025
FY2024
FY2023
1.95 million merchant locations
Meeting the living infrastructure needs of local customers | ||
Domestic | ||
The AFS Group is committed to sustainable growth Initiatives in by contributing to the development of local communi- Saitama City ties and enhancing customers' daily lives through its business activities. Since May 2024, as part of our collaboration with local communities, the Company and FeliCa Pocket Marketing Inc. have participated in Tsunagu Co., Ltd., a regional trading company that operates "Tsunagaryu Nu," the citizen apps featuring digital community currency Mascot of Saitama City functions in Saitama City. By issuing digital commu- nity currencies, sharing experience and know-how in Number of FeliCa Pocket Marketing Inc. the community currency business, and developing initiatives nationwide: citizen apps, we aim to revitalize the region while 152 improving convenience, including the adoption of (as of the end of August 2025) cashless payments. | ||
Implementing Digital Financial Inclusion in Each Country | ||
Global | ||
On May 26, 2024, AEON BANK (M) Berhad launched Malaysia's first digital bank based on the Islamic financial system. The bank introduces cutting-edge technologies, such as AI-driven analysis and aims to maximize LTV* by delivering appropriate services tailored to customers' evolving financial needs as their income and life stages change. We are also striving to realize digital financial inclusion by creating an envi- ronment where a wide range of people, including unbanked individuals who previously found it difficult to access financial services, can easily access such services. *LTV: Life Time Value | ||
Expansion of Business, Products Offered, and Expansion Areas | ||
Global | ||
Initiatives to expand the AEON Living Zone are underway not only in Japan but also across the other Number of WAON POINT Asian countries where we operate. In Vietnam, ACS members in Vietnam TRADING VIETNAM CO., LTD. began offering the 3 million AEON Group's shared loyalty points, WAON POINT, (as of the end of February 2025) in October 2024, strengthening cooperation with local AEON Group companies. In Malaysia as well, AEON CREDIT SERVICE (M) BERHAD and AEON CO. (M) BHD. which operates the local retail business, established AEON360 Sdn. Bhd. in September 2025 to further expand the AEON Living Zone. We are strengthening collaboration in data-driven marketing and working to create new customer experiences. | ||
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