September, 2021 (214KB)

(Translation for reference only)

November 10, 2021

Consolidated Financial Results for the Second Quarter of Fiscal Year 2021

For the Six Months Ended September 30, 2021

(Under Japanese GAAP)

Company name:	AIFUL Corporation
Stock Listing:	Tokyo Stock Exchange
Stock Code:	8515
URL:	https://www.aiful.co.jp
Representative:	Mitsuhide Fukuda, President and Chief Executive Officer
For inquiry:	Toshiaki Ando, Assistant Senior General Manager of Finance Division TEL (03) 4503 - 6050
Scheduled date	of submission of Quarterly Securities Report: November 12, 2021

Scheduled date of commencement of dividend payments : －

Supplementary materials for Quarterly Financial results: Yes

Quarterly earnings release conference: Yes

I. Consolidated Financial Results for the Second Quarter of Fiscal Year 2021

(April 1, 2021 - September 30, 2021)

(Amounts less than one million yen have been rounded down)

1. Consolidated Operating Results

						(Millions	of yen, Percentages	indicate	year-on-year changes)
		Operating Revenue	Operating Profit		Ordinary Profit			Profit Attributable to
					Owners of Parent
Six months ended
September 30, 2021	64,837	2.2%	9,930		5.9%	9,856	(5.0)	%		10,042	2.3%
September 30, 2020	63,462	3.6%	9,378	102.9%	10,373	109.6%		9,812	87.1%
Note:	Comprehensive	income: For the six months	ended					(0.3)%
			September 30, 2021	9,959 million yen
			September 30,	2020	9,989, million yen	119.0%
		Net Income per Share	Diluted Net Income per
		(Yen)		Share (Yen)
Six months ended	20.76			-
September 30, 2021
September 30, 2020	20.29			-

2. Consolidated Financial Position

			Total Assets	Net Assets	Shareholders' Equity
			Ratio (%)
As of			877,009	154,208	17.3
September 30, 2021
March 31, 2021		863,354	147,692	16.9
Reference:	Shareholders'	equity:	As of September 30, 2021	151,962	million yen
			As of March 31, 2021	145,555 million yen

Note: The Company has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the beginning of the first quarter of the current fiscal year.

II. Dividend Information

			Dividend per share (Yen)
	End of	End of	End of		Year-end	Annual
	1st quarter	2nd quarter	3rd quarter
FY ended March 31, 2021	-	0.00	-		1.00	1.00
FY ending March 31, 2022	-	0.00
FY ending March 31, 2022			-		1.00	1.00
(Forecast)

Note: Revisions to dividend forecasts: None

1. Earnings Forecast on a Consolidated Basis for the Fiscal Year ending March 31, 2022
   (April 1, 2021 - March 31, 2022)

(Millions of yen, Percentages indicate year-on-year changes)

	Operating Revenue	Operating Profit	Ordinary Profit	Profit Attributable to	Profit per
	Owners of Parent	Share (Yen)
Fiscal year ending	131,800	3.4%	24,100	37.5%	24,300	25.9%	23,100	25.3%	47.76
March 31, 2022
Note: Revisions to consolidated earnings forecasts: Yes

IV. Other

1. Changes in significant subsidiaries during the six months ended September 30, 2021 (Changes in specified subsidiaries resulting changes in scope of consolidation): None
2. Adoption of special accounting methods for quarterly consolidated financial statements: None
3. Changes in accounting policies, accounting estimates and restatements
4. 1. Changes in accompanying amendments to accounting standards: Yes
   2. Changes other than those in (a): None
   3. Change in accounting estimates: None
   4. Restatements: None

Note: For details, please refer to "Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 8 of [Appendix].

1. Number of shares issued (Common stock)
2. 1. Number of shares issued at the end of the period
      (including treasury stock)
   2. Number of treasury stock at the end of the period
   3. Average number of shares during the period

FY2021 2Q	484,620,136	shares	FY2020	484,620,136 shares
FY2021 2Q	917,470	shares	FY2020	917,470 shares
FY2021 2Q	483,702,666	shares	FY2020 2Q	483,702,781 shares

• Note: Brief Statement of quarterly financial results is not subject to audit procedures that are conducted by a certified public accountant or an audit corporation.
• Note: Disclaimer concerning the proper use of business results forecasts, etc.

The forecasts and other forward-looking statements contained in this Report are based on information currently available to the Company as well as certain assumptions that the AIFUL Group has judged to be reasonable. Accordingly, actual results may differ from the forecasts due to various factors. For matters related to earnings forecast above, please refer to "Qualitative Information on the Forecasts for the Consolidated Business Results" on page 3.

Contents

1. Quarterly Qualitative Information on Business Results……..…………………….………………………………	2
(1) Qualitative Information on Business Results………….…………………………..…………………...………	2
(2) Qualitative Information on the Forecasts for the Consolidated Business Results…………………………..…	3
2. Quarterly Consolidated Financial Statements and Notes…………………………………………………….........	4
(1) Quarterly Consolidated Balance Sheets…………….………………………………………………………….	4
(2) Quarterly Consolidated Statements of Income and
Consolidated Statements of Comprehensive Income…………………………………………………….……	5
(3) Quarterly Consolidated Statements of Cash Flows…………..…………………………………………….......	7
(4) Notes to Quarterly Consolidated Financial Statements ………………………….………………………........	8
(Notes on Premise of Going Concern) …….…………………………………………………………………..	8
(Changes in the Scope of Consolidation and the Scope of Application of the Equity Method)	8
(Notes in Case of any Significant Changes in the Amount Shareholders' Equity) ……………….…………..	8
(Changes in Accounting policy).…………....………………………………………………………………...	8

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1. Quarterly Qualitative Information on Business Results

The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020; hereinafter the "Accounting Standard for Revenue Recognition") and other standards from the beginning of the first quarter of the current fiscal year, which have affected its financial position and results of operations.

For details, please refer to "2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)."

(1) Qualitative Information on Business Results

During the six months ended September 30, 2021, the Japanese economy is heading toward a gradual recovery, partly due to the spread of vaccines and the progress of immunization, although it is still in the midst of the emergency declaration.

At present, we expect full-fledged economic activities to resume following the lifting of the emergency declaration and pre- emergency measures.

The consumer finance industry is also on a recovery trend, with the number of new contracts at major companies increasing year on year.

Going forward, we will continue to closely monitor the situation, such as the re-expansion of COVID-19 and the reoccurrence of the emergency declaration. Nevertheless, AIFUL Group will work to expand its operating assets on a group-wide basis by effectively investing in advertising and promotions that leverage AIFUL's recognition and by selling a variety of Group-wide products, while responding to requests for interest repayment, which is one of the management issues.

In addition, in order to realize the management theme of "achieving growth as an IT finance group through organizational and institutional reforms in response to changes in the environment and the utilization of digital technologies," the Group will focus on "diversification of business portfolio" through business diversification, strengthening of overseas businesses, and "utilization of digital technologies," such as IT technology analysis and in-house production of systems.

(Overview of the results)

AIFUL Group's consolidated operating revenue for the first half of the fiscal year ended September 30, 2021 rose 2.2% compared with the corresponding period of the previous fiscal year, to 64,837 million yen. The principal components were 37,523 million yen in interest on loans (up 1.2% year on year), 8,973 million yen in revenue from the credit card business (down 1.7% year on year) and 7,774 million yen in revenue from the credit guarantee business (up 5.0% year on year).

Operating expenses increased by 822 million yen, or 1.5%, compared with the corresponding period of the previous fiscal year, to 54,907 million yen. The main reason for this was that advertising-related expenses in the same period of the previous fiscal year were curtailed due to the expansion of COVID-19.

As a result, AIFUL Group posted operating profit of 9,930 million yen (up 5.9% year on year) and ordinary profit of 9,856 million yen (down 5.0% year on year). Profit attributable to owners of parent stood at 10,042 million yen (up 2.3% year on year), reflecting a profit attributable to non-controlling interests of 106 million yen.

Due to the adoption of the revenue recognition accounting standards, operating revenue increased by 57 million yen, operating expenses decreased by 100 million yen, operating profit increased by 157 million yen, and ordinary profit increased by 156 million yen.

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(2) Qualitative Information on the Forecasts for the Consolidated Business Results

With regard to the expected full-term concatenated performance in the March 2022 period (April 1, 2021, to March 31, 2022), which we announced in the March 12, 2021, Conclusion Short Form, 2021, we replaced our expectations for the first full-term expectations with those for the second quarter, reflecting the anticipated decrease in business costs due to a decrease in business income due to a decrease in the income from comprehensive purchases in the full-term, as well as a decrease in the costs related to bankruptcy. We modified the expectations as follows:

Earnings Forecast on a Consolidated Basis for the Fiscal Year ending March 31, 2022 (April 1, 2021 - March 31, 2022)

					(Millions of yen)
	Operating	Operating Profit	Ordinary Profit	Profit	Profit per Share
	Revenue	(Yen)
Previous Forecast (A)	132,800	23,700	24,200	21,100	43.62
Revised Forecast (B)	131,800	24,100	24,300	23,100	47.76
Amount of Change (B-A)	▲1,000	400	100	2,000	―
Percentage Change (%)	▲0.8	1.7	0.4	9.5	―
Reference: Earnings for
previous FY ended in	127,481	17,530	19,305	18,437	38.12
March 31, 2021

The current business environment surrounding us is subject to various risks and remains uncertain. As a result, the final results may differ from the forecasts.

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