AEON Financial Service : Brief Report of Financial Results FY2022 (For the Three Months Ended May 31, 2022) (377KB)

Brief Report of Financial Results（Unaudited）
(For the Three Months Ended May 31, 2022)
	July 5，2022
Registered Company Name: AEON Financial Service Co., Ltd.
Stock Listing: Tokyo Stock Exchange, Prime Market
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 Three Months ended May 31, 2022 and for the Three Months ended May 31, 2021)

(1) Consolidated Operating Results

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

							Profit
	Operating	Percentage	Operating	Percentage	Ordinary	Percentage	attributable	Percentage
	income	Change	profit	Change	profit	Change	to owners	Change
							of parent
Three Months ended
May 31, 2022	106,965	-	15,283	△26.2	16,382	△24.2	7,917	△32.1
Three Months ended
May 31, 2021	122,205	11.1	20,710	-	21,603	-	11,667	-

(Note)Comprehensive income; The 1st Quarter of Fiscal 2022; 18,960 million ( △9.2%), The 1st Quarter of Fiscal 2021;20,872 million (-%)

	Net Income per Share	Fully Diluted Net
	Income per Share
	(Yen)
	(Yen)
Three Months ended	36.68	36.68
May 31, 2022
Three Months ended	54.06	54.05
May 31, 2021

(Note) "Accounting Standards for Revenue Recognition" (Corporate Accounting Standards No. 29, March 31, 2020) have been applied since the beginning of the first quarter of the current consolidated accounting period, and each figure for the first quarter of the fiscal year ending February 28, 2023 is the value after the application of the accounting standard, etc., and the rate of change in operating revenue from the same quarter of the previous year is not shown.

(2) Financial Position

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

	Total Assets	Net Assets	Capital Ratio	Net Assets per Share
Three Months ended
May 31, 2022	6,465,815	521,280	6.6	1,971.44
Fiscal 2021 ended
February 28, 2022	6,278,586	509,055	6.8	1,965.47

(Reference)Shareholder's equity; The 1st Quarter of Fiscal 2022;425,514 million, Fiscal 2021;424,222 million

(Note) "Accounting Standards for Revenue Recognition" (Corporate Accounting Standards No. 29, March 31, 2020) have been applied since the beginning of the first quarter of the current consolidated accounting period, and each figure for the first quarter of the fiscal year ending February 28, 2023 is the value after the application of the accounting standard, etc..

2. Cash Dividends

										(yen)
					Dividend per share
(Base date)		First quarter		Interim		Third quarter		Term end		Annual
	period		period		period
February 2022 term		－	19.00		－		31.00	50.00
February 2023 term		－
February 2023 term (Estimated)			20.00		－		30.00	50.00

(Note) Amendments from the most recently published dividend forecast : No Breakdown of dividend for end-second quarter of February 2022 term

• Ordinary dividend 17yen, commemorative dividend for our 40th year of business 2 yen. Breakdown of dividend for fiscal year-end of February 2022 term
• Ordinary dividend 29yen, commemorative dividend for our 40th year of business 2 yen.

3. Projections (For the fiscal year ending February 28, 2023)

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

							Profit
	Operating	YoY	Operating	YoY	Ordinary	YoY	attributable	YoY	Net income
	income		profit		profit		to owners		per share
							of parent
			55,000	△6.5	55,000	△8.2	27,000	△10.6	125.10
Full term	445,000	1.5	to	to	to	to	to	to	to
			60,000	1.9	60,000	0.1	29,000	△4.0	134.61

(Note) Amendments from the most recently published projections forecast : No Interim projections forecast are not disclosed

In order to apply the "Accounting Standards for Revenue Recognition" (Corporate Accounting Standards No. 29, March 31, 2020) from the fiscal year ending February 28, 2023, operating income in the above consolidated earnings forecasts is the amount after the application of the accounting standards. The rate of change from the previous fiscal year is based on a comparison with the figures after retrospectively applying the relevant accounting standards.

※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: Yes
   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 1st quarter of Fiscal 2022: 216,010,128 shares; Fiscal 2021: 216,010,128 shares

• Number of shares of treasury stock at end of term
  The 1st quarter of Fiscal 2022: 170,950 shares; Fiscal 2021: 172,749 shares

• Average number of shares during the quarter (For the Three Months ended May 31, 2022)

The 1st quarter of Fiscal 2022: 215,839,120 shares; The 1st quarter of Fiscal 2021: 215,830,489 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

Consolidated Balance Sheets

			(Millions of yen)
		As of February 28, 2022	As of May 31, 2022
Assets
Current assets
Cash and deposits	738,782	604,020
Call loans	8,864	4,684
Accounts receivable - installment	1,566,284	1,728,681
Lease receivables and investments in	12,585	12,265
leases
Operating loans	772,604	824,156
Loans and bills discounted for banking	2,110,010	2,226,878
business
Securities for banking business	536,221	527,437
Securities for insurance business	49,397	45,453
Monetary claims bought	27,028	26,142
Money held in trust	111,015	108,416
Other	170,924	174,072
Allowance for doubtful accounts	△124,549	△125,543
Total current assets	5,979,170	6,156,663
Non-current assets
Property, plant and equipment	34,320	34,063
Intangible assets
Goodwill	14,924	14,492
Software	107,732	110,522
Other	4,344	4,244
Total intangible assets	127,001	129,258
Investments and other assets	137,377	145,195
Total non-current assets	298,699	308,517
Deferred assets	716	633
Total assets	6,278,586	6,465,815
Liabilities
Current liabilities
Accounts payable - trade	225,236	272,575
Deposits for banking business	4,178,544	4,247,811
Short-term borrowings	204,074	283,397
Current portion of long-term borrowings	90,214	104,062
Current portion of bonds payable	63,410	54,247
Commercial papers	85,000	79,000
Provision for bonuses	4,086	5,945
Provision for point card certificates	7,129	1,742
Other provisions	200	159
Other	194,349	175,023
Total current liabilities	5,052,244	5,223,966
Non-current liabilities
Reserve for insurance policy liabilities	64,367	62,234
Bonds payable	277,250	248,576
Long-term borrowings	335,933	370,544
Retirement benefit liability	2,271	2,399
Provision for loss on interest repayment	6,476	5,695
Other provisions	460	235
Deferred tax liabilities	1,273	1,431
Other	29,252	29,451
Total non-current liabilities	717,286	720,568
Total liabilities	5,769,530	5,944,534

		(Millions of yen)
	As of February 28, 2022	As of May 31, 2022
Net assets
Shareholders' equity
Share capital	45,698	45,698
Capital surplus	119,990	120,308
Retained earnings	258,525	259,750
Treasury shares	△442	△437
Total shareholders' equity	423,771	425,319
Accumulated other comprehensive income
Valuation difference on available-for-	△2,549	△12,824
sale securities
Deferred gains or losses on hedges	△1,628	76
Foreign currency translation adjustment	4,852	13,154
Remeasurements of defined benefit plans	△222	△210
Total accumulated other comprehensive	450	195
income
Share acquisition rights	33	30
Non-controlling interests	84,799	95,735
Total net assets	509,055	521,280
Total liabilities and net assets	6,278,586	6,465,815

Consolidated Statement of Income

		(Millions of yen)
	Three months ended	Three months ended
	May 31, 2021	May 31, 2022
Operating revenue
Revenue from credit card business	32,783	28,153
Revenue from installment sales finance	11,128	11,172
business
Financing revenue	32,938	33,357
Recoveries of written off receivables	2,666	3,672
Financial revenue	9,298	10,039
Insurance revenue	11,531	3,090
Fees and commissions	16,473	14,804
Other	5,386	2,673
Total operating revenue	122,205	106,965
Operating expenses
Financial expenses	5,286	5,255
Insurance expenses	11,158	2,986
Fees and commissions payments	2,650	3,046
Selling, general and administrative expenses	81,671	79,648
Other	728	745
Total operating expenses	101,495	91,682
Operating profit	20,710	15,283
Non-operating income
Dividend income	129	64
Gain on investments in investment	294	216
partnerships
Foreign exchange gains	－	667
Subsidy income	493	113
Other	31	38
Total non-operating income	949	1,100
Non-operating expenses
Foreign exchange losses	46	－
Miscellaneous losses	9	0
Total non-operating expenses	56	0
Ordinary profit	21,603	16,382
Extraordinary income
Gain on sale of non-current assets	6	1
Gain on sale of investment securities	436	－
Gain on termination of retirement benefit	239	－
plan
Total extraordinary income	682	1
Extraordinary losses
Loss on disposal of non-current assets	173	93
Impairment losses	93	11
Infectious Disease Related Cost	12	8
Other	10	1
Total extraordinary losses	290	115
Profit before income taxes	21,995	16,268
Income taxes - current	5,732	3,666
Income taxes - deferred	554	778
Total income taxes	6,287	4,444
Profit	15,708	11,823
Profit attributable to non-controlling	4,041	3,906
interests
Profit attributable to owners of parent	11,667	7,917