AEON Financial Service : Brief Report of Financial Results FY2021 (For the Nine Months Ended November 30, 2021) ()

Brief Report of Financial Results（Unaudited）
		(For the Nine Months Ended November 30, 2021)
								January 12，2022
Registered Company Name: AEON Financial Service Co., Ltd.
Stock Listing: Tokyo Stock Exchange, First Section
Code No: 8570						URL: https://www.aeonfinancial.co.jp/eng/
President and CEO: Kenji Fujita
Contact: Yuro Kisaka, Director, Managing Executive Officer
1. Business performance (For the Nine Months ended November 30, 2021 and for the Nine Months ended November 30, 2020)
(1) Consolidated Operating Results			(Millions of yen truncated to the nearest million, %, yen)
	Operating	Percentage	Operating	Percentage		Ordinary	Percentage	Profit	Percentage
		attributable
	revenue	Change	profit	Change		profit	Change	to owners	Change
								of parent
Nine Months ended	348,739	-3.5	44,229	78.0		45,283	86.4	22,348	122.3
November 30, 2021
Nine Months ended	361,557	-	24,852	-		24,298	-	10,053	-
November 30, 2020

(Note)Comprehensive income; The 3rd Quarter of Fiscal 2021; 30,520 million ( -%), The 3rd Quarter of Fiscal 2020;13,542 million (-%)

	Net Income per Share	Fully Diluted Net
	Income per Share
	(Yen)
	(Yen)
Nine Months ended	103.54	103.53
November 30, 2021
Nine Months ended	46.58	46.58
November 30, 2020

(2) Financial Position

			(Millions of yen truncated to the nearest million, %, yen)
	Total Assets	Net Assets	Capital Ratio	Net Assets per Share
Nine Months ended	6,258,711	499,857	6.7	1,948.26
November 30, 2021
Year ended	6,123,721	474,667	6.6	1,860.08
February 28, 2021
(Reference)Shareholder's equity; The 3rd Quarter of Fiscal 2021;420,499 million, Fiscal 2020;401,462 million

2. Cash Dividends

						(Yen)
			Annual Dividend
(Base date)	End of 1Q	End of 2Q		End of 3Q	Year-end	Total
Year ended February 28, 2021	－	11.00		－	23.00	34.00
Year ending February 28, 2022	－	19.00
Year ending February 28, 2022				－	26.00	45.00
(Forecast)

(Note) Amendments from the most recently published dividend forecast : No Breakdown of dividend for end of 2Q of the year ending February 28, 2022

• Ordinary dividend 17yen, commemorative dividend of 2yen for the 40th anniversary of the establishment. Breakdown of dividend for year-end of the year ending February 28, 2022 (Forecast)
• Ordinary dividend 24yen, commemorative dividend2yen for the 40th anniversary of the establishment.

3. Projections (For the fiscal year ending February 28, 2022)

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

	Operating	YoY	Operating	YoY	Ordinary	YoY	Profit	YoY	Net income
	attributable
	revenue		profit		profit		to owners		per share
							of parent
Full year	460,000	-5.6	51,000	25.5	51,000	26.7	25,000	41.3	115.83

(Note) Amendments from the most recently published projections forecast : Yes

※Notes

(1) Change in significant subsidiary during the term

(Change in specified subsidiary that caused a change in the scope of consolidation): No

1. Application of accounting treatment specific to the preparation of quarterly consolidated financial statements: No
2. Change in accounting principle, procedure, disclosure, etc. concerning preparation of consolidated financial statements ① Change due to a newly issued accounting requirement: No
   ②Change other than ① : No
   ③Change accounting quotation: No
   ④Restatement: No
3. Number of issued stock and outstanding stock (Common stock)
4. • Number of issued stock and outstanding stock at term end (including treasury stock) The 3rd Quarter of Fiscal 2021: 216,010,128 shares; Fiscal 2020: 216,010,128 shares

• Number of shares of treasury stock at end of term
  The 3rd Quarter of Fiscal 2021: 176,088 shares; Fiscal 2020: 179,553 shares

• Average number of shares during the quarter (For the Nine Months ended November 30, 2021)

The3rd Quarter of Fiscal 2021: 215,832,578 shares; The 3rd Quarter of Fiscal 2020: 215,809,633 shares

• This Brief Report of Financial Results (Unaudited) is not required for submission for quarterly audit review.

※Projections above are based on management's assumptions using information available at the time of publication. Owing to various factors, actual results may differ from these projections.

※Information about the business profile and financial results of AEON Financial Service Co., Ltd are available on the company home page.

Attachments

(1) Consolidated Balance Sheets

		(Millions of yen)
	As of February 28, 2021	As of November 30, 2021
Assets
Current assets
Cash and deposits	705,739	626,595
Call loans	30,841	2,275
Accounts receivable - installment	1,521,149	1,664,291
Lease receivables and investments in	12,284	12,385
leases
Operating loans	782,916	784,077
Loans and bills discounted for banking	1,998,379	2,143,804
business
Securities for banking business	519,023	480,021
Securities for insurance business	70,261	50,066
Monetary claims bought	30,800	28,256
Money held in trust	92,567	110,783
Other	184,176	176,543
Allowance for doubtful accounts	△133,331	△121,716
Total current assets	5,814,809	5,957,382
Non-current assets
Property, plant and equipment	39,152	36,015
Intangible assets
Goodwill	16,784	15,403
Software	100,249	106,263
Other	4,738	4,444
Total intangible assets	121,773	126,111
Investments and other assets	147,205	138,511
Total non-current assets	308,130	300,637
Deferred assets	780	690
Total assets	6,123,721	6,258,711
Liabilities
Current liabilities
Accounts payable - trade	270,015	275,571
Deposits for banking business	4,018,666	4,105,367
Short-term borrowings	216,468	259,816
Current portion of long-term borrowings	62,159	92,933
Current portion of bonds payable	23,012	58,299
Commercial papers	85,000	85,000
Provision for bonuses	3,511	5,890
Provision for point card certificates	20,685	14,107
Other provisions	197	145
Other	189,143	166,322
Total current liabilities	4,888,859	5,063,454
Non-current liabilities
Reserve for insurance policy liabilities	86,639	66,380
Bonds payable	282,721	263,072
Long-term borrowings	337,026	328,931
Retirement benefit liability	4,707	2,609
Provision for loss on interest repayment	5,706	3,024
Other provisions	530	532
Deferred tax liabilities	1,518	1,578
Other	41,344	29,271
Total non-current liabilities	760,194	695,400
Total liabilities	5,649,053	5,758,854

		(Millions of yen)
	As of February 28, 2021	As of November 30, 2021
Net assets
Shareholders' equity
Share capital	45,698	45,698
Capital surplus	120,145	120,117
Retained earnings	237,385	250,661
Treasury shares	△460	△451
Total shareholders' equity	402,768	416,026
Accumulated other comprehensive income
Valuation difference on available-for-	3,283	5,531
sale securities
Deferred gains or losses on hedges	△3,902	△2,659
Foreign currency translation adjustment	△334	1,826
Remeasurements of defined benefit plans	△352	△225
Total accumulated other comprehensive	△1,306	4,473
income
Share acquisition rights	43	40
Non-controlling interests	73,162	79,316
Total net assets	474,667	499,857
Total liabilities and net assets	6,123,721	6,258,711

(2) Consolidated Statements of Income

		(Millions of yen)
	Nine months ended	Nine months ended
	November 30, 2020	November 30, 2021
Operating revenue
Revenue from credit card business	96,319	97,741
Revenue from installment sales finance	31,830	32,562
business
Financing revenue	104,865	96,981
Recoveries of written off receivables	7,011	8,747
Financial revenue	24,042	25,426
Insurance revenue	37,535	25,494
Fees and commissions	45,228	44,894
Other	14,724	16,890
Total operating revenue	361,557	348,739
Operating expenses
Financial expenses	17,371	15,985
Insurance expenses	36,616	25,004
Fees and commissions payments	8,060	8,602
Selling, general and administrative expenses	272,113	252,693
Other	2,541	2,224
Total operating expenses	336,704	304,509
Operating profit	24,852	44,229
Non-operating income
Dividend income	142	187
Gain on investments in investment	243	324
partnerships
Subsidy income	－	493
Other	155	121
Total non-operating income	541	1,127
Non-operating expenses
Share of loss of entities accounted for	－	37
using equity method
Loss on valuation of investment securities	670	－
Foreign exchange losses	395	18
Loss on transfer of receivables	－	10
Miscellaneous loss	29	6
Total non-operating expenses	1,095	72
Ordinary profit	24,298	45,283
Extraordinary income
Gain on sales of non-current assets	7	16
Gain on sales of investment securities	－	436
Gain on termination of retirement benefit	－	239
plan
Subsidies for employment adjustment	274	7
Total extraordinary income	282	699