AEON Financial Service : For the Six Months ended May 31, 2023

	Brief Report of Financial Results（Unaudited）
	(For the six Months Ended August 31, 2023)
	October 10，2023
Company name AEON Financial Service Co., Ltd.
Listings	Tokyo Stock Exchange, Prime Market
Security code	8570
URL	https://www.aeonfinancial.co.jp/en/
Representative	Kenji Fujita, President and CEO
Contact:	Tomoyuki Mitsufuji, Director, Managing Executive Officer

1. Business performance (For the six Months ended August 31, 2023 and for the Six Months ended August 31, 2022)

(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
Six Months ended
August 31, 2023	237,555	7.2	20,290	△36.3	21,314	△38.0	7,236	△60.2
Six Months ended
August 31, 2022	221,579	-	31,857	△4.2	34,390	0.6	18,204	0.3
(Note) Comprehensive income; The 1st Quarter of Fiscal 2023; 30,406 million ( △14.8%),
	The 1st Quarter of Fiscal 2022; 35,678 million (15.3%)
				(yen)
	Net Income per Share	Fully Diluted Net
	Income per Share
Six Months ended		33.53		33.52
August 31, 2023
Six Months ended		84.34		84.33
August 31, 2022

(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 second 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	Total equity ratio	Net Assets per Share
Six Months ended	6,913,200	561,508	6.4	2,062.55
August 31, 2023
February 28, 2022	6,659,468	541,133	6.5	2,014.29
(Note) Own capital; Six Months ended August 31, 2023; 445,230 million
	February 28, 2022; 434, 800 million

2. Cash Dividends

(yen)

Dividend per share

(Base date)

First quarter

Interim

Third quarter

Term end

Annual

period

period

period

February 2023 term

－

20.00

－

33.00

53.00

February 2024 term

－

25.00

February 2023 term (Estimated)

－

28.00

53.00

(Note) Amendments from the most recently published dividend forecast : No

3. Projections (For the fiscal year ending February 28, 2024)

(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
Full term	480,000	1.5	61,000	3.6	61,000	△0.9	27,000	△12.0	125.08

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

※Notes

1. Changes in significant subsidiary during the period
   (changes in specified subsidiaries resulting in the change in scope of consolidation ): Yes
   New: - companies, Excluded: 1 company (AEON Credit Service Co., Ltd.)
   (Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in significant subsidiaries during the period)" on page 12.
2. Application of accounting treatment specific to the preparation of quarterly consolidated financial statements: No
3. 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
4. Number of shares issued (Common stock)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

Six Months ended August 31, 2023	216,010,128 shares
Year ending February 28, 2023	216,010,128 shares

2) Number of shares held in treasury at end of period (including treasury shares)

Six Months ended August 31, 2023	145,822 shares
Year ending February 28, 2023	152,400 shares

3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Six Months ended August 31, 2023	215,858,079 shares
Six Months ended August 31, 2022	215,840,136 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.
• The Company provides FACT BOOK on its business and performance on its website.

Accompanying Materials

Contents

Consolidated Financial Statements and Main Notes

1. Consolidated Balance Sheet
2. Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
3. Notes on the Consolidated Financial Statements (Notes on the Going-concern Assumption)
   (Notes on Significant Changes in the Amount of Shareholders' Equity)
   (Change in significant subsidiary during the term) (Changes in Accounting Policy)
   (Application of Accounting Standard for Fair Value Measurement) (Additional Information)
   (Segment Information) (Material Subsequent Events)

		(Millions of yen)
	As of February 28, 2023	As of August 31, 2023
Assets
Current assets
Cash and deposits	842,615	698,093
Call loans	10,373	1,653
Accounts receivable - installment	1,769,588	1,933,380
Lease receivables and investments in	11,951	11,510
leases
Operating loans	845,262	899,920
Loans and bills discounted for banking	2,160,775	2,235,756
business
Securities for banking business	460,545	583,049
Securities for insurance business	18,134	17,393
Monetary claims bought	22,534	20,158
Money held in trust	123,894	123,258
Other	200,590	189,933
Allowance for doubtful accounts	△127,445	△128,469
Total current assets	6,338,823	6,585,639
Non-current assets
Property, plant and equipment	31,925	32,015
Intangible assets
Goodwill	13,191	12,368
Software	113,906	123,425
Other	3,942	3,750
Total intangible assets	131,040	139,544
Investments and other assets	157,008	155,297
Total non-current assets	319,974	326,857
Deferred assets	670	703
Total assets	6,659,468	6,913,200
Liabilities
Current liabilities
Accounts payable - trade	255,662	286,834
Deposits for banking business	4,397,953	4,506,069
Short-term borrowings	221,934	264,926
Current portion of long-term borrowings	117,858	123,037
Current portion of bonds payable	85,237	55,260
Commercial papers	75,000	77,494
Provision for bonuses	4,365	4,823
Provision for point card certificates	798	715
Other provisions	190	48
Other	185,509	195,956
Total current liabilities	5,344,510	5,515,167
Non-current liabilities
Reserve for insurance policy liabilities	54,338	52,019
Bonds payable	264,826	276,539
Long-term borrowings	417,238	470,197
Retirement benefit liability	2,151	2,364
Provision for loss on interest repayment	4,822	3,294
Other provisions	232	259
Deferred tax liabilities	1,286	1,189
Other	28,928	30,661
Total non-current liabilities	773,824	836,525
Total liabilities	6,118,335	6,351,692

(Millions of yen)

	As of February 28, 2023	As of August 31, 2023
Net assets
Shareholders' equity
Share capital	45,698	45,698
Capital surplus	120,270	120,265
Retained earnings	278,172	277,766
Treasury shares	△390	△373
Total shareholders' equity	443,750	443,356
Accumulated other comprehensive income
Valuation difference on available-for-	△27,661	△26,076
sale securities
Deferred gains or losses on hedges	120	515
Foreign currency translation adjustment	18,738	27,552
Remeasurements of defined benefit plans	△147	△117
Total accumulated other comprehensive	△8,950	1,873
income
Share acquisition rights	13	15
Non-controlling interests	106,319	116,262
Total net assets	541,133	561,508
Total liabilities and net assets	6,659,468	6,913,200