REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATIONBY THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

TO THE BOARD OF DIRECTORSAEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED

We have reviewed the consolidated statement of financial position of AEON Thana Sinsap(Thailand) Public Company Limited and its subsidiaries and the separate statement offinancial position of AEON Thana Sinsap (Thailand) Public Company Limited as at May 31,
2023, and the related consolidated and separate statements of profit or loss, profit or loss
and other comprehensive income, changes in shareholders’ equity and cash flows for thethree-month period then ended, and the condensed notes to the financial statements. The
Company’s management is responsible for the preparation and presentation of this interim
financial information in accordance with Thai Accounting Standard No. 34 “Interim
Financial Reporting”. Our responsibility is to express a conclusion on this interim financial
information based on our review.
Scope of Review
We conducted our review in accordance with Thai Standard on Review Engagements 2410
“Review of Interim Financial Information Performed by the Independent Auditor of the
Entity”. A review of interim financial information consists of making inquiries, primarilyof persons responsible for financial and accounting matters, and applying analytical andother review procedures. A review is substantially less in scope than an audit conducted inaccordance with Thai Standards on Auditing and consequently does not enable us to obtainassurance that we would become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe thatthe aforementioned interim financial information is not prepared, in all material respects,
in accordance with Thai Accounting Standard No. 34 “Interim Financial Reporting”.

BANGKOK

July 5, 2023

Nisakorn Songmanee
Certified Public Accountant (Thailand)
Registration No. 5035
DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF FINANCIAL POSITION
AS AT MAY 31, 2023
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS“Unaudited”“Unaudited”

As at

As at

As at

As at

May 31,February 28,

May 31,February 28,

2023

2023

2023

2023

4.1

3,595,975

3,816,356

2,069,652

2,159,810

580,312,328

80,667,069

77,460,428

77,833,587

499,573

518,404

401,827

414,708--

27,65527,990--ASSETS
CURRENT ASSETS

Cash and cash equivalents
Trade and other current receivables
Trade receivables
Other receivables
Current portion of long-term loan to a subsidiary

6

Current portion of loans from purchase of accounts receivable

7

Seller loan in Special Purpose Vehicle for securitization
Current portion of derivative assets

2,936

490

11

-

-

283,563

287,62118

844,449

1,047,431

844,449

1,047,431

Other current assets
Total Current Assets

107,142

102,645

43,832

42,95585,362,403

86,152,395

81,131,406

81,814,102

3,286,332

3,144,652

1,524,112

1,496,409

49,361

74,04149,361

74,041

108,478

144,216

-

-

-

-

82,964

83,970NON-CURRENT ASSETS

Trade and other non-current receivables
Trade receivables

5

Other receivables
Fixed deposits at banks under obligations
Long-term loan to a subsidiary

6

Loans from purchase of accounts receivable

7

48,581

12,133

Investments in subsidiaries

8

-

-

-

-

1,235,409

1,235,409

Investments in equity securities designated at fair value
through profit or loss

9

5,062

5,062

5,062

5,062

10

144,000

144,000

144,000

144,000

12.1

-

-

84,074

84,074

Investment in equity securities designated at fair value
through other comprehensive income
Subordinated lendings
Leasehold improvements and equipment

526,229

523,145438,625

447,217

Right-of-use assets

811,744892,559

708,816

776,685

Intangible assets other than goodwill

867,819

923,406

738,367

783,252

Derivative assets

18414,271684,654414,271684,654

Deferred tax assets

13

2,532,297

2,340,922

2,460,547

2,268,848

Other non-current assets
Total Non-current Assets
TOTAL ASSETS

See condensed notes to the financial statements

160,281

165,501

144,081

146,184

8,954,455

9,054,291

8,029,689

8,229,805

94,316,858

95,206,686

89,161,095

90,043,907

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT MAY 31, 2023
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS“Unaudited”“Unaudited”

As at

As at

As at

As at

May 31,February 28,

May 31,February 28,

2023

2023

2023

2023

4,386,446

4,485,424

3,280,000

3,440,000

Trade payables

208,276

220,728

194,847

200,448

Other payables

1,650,840

1,629,459

1,549,228

1,532,329

13,041,716

12,836,551

11,499,876

11,273,543

LIABILITIES AND SHAREHOLDERS’ EQUITYCURRENT LIABILITIESShort-term borrowings from financial institutions

14

Trade and other current payables

Current portion of long-term liabilities
Long-term borrowings

15

Derivative liabilities

18688,207562,743688,207562,743

429,294

444,127

379,069

389,924

Current income tax payable

946,969

643,416

903,360

608,272

Other current liabilities

368,671

341,614367,431

345,103

21,720,419

21,164,062

18,862,018

18,352,362

Lease liabilities

Total Current Liabilities

NON-CURRENT LIABILITIESLong-term borrowings

15

37,147,633

39,152,934

35,907,309

37,867,795

Long-term borrowings under securitization project

16

-

-

1,224,144

1,260,991

Long-term debentures

17

9,421,826

9,580,142

7,948,744

8,107,060

Derivative liabilities

18

1,092,310

876,160

1,092,310

876,160

Lease liabilities

411,424

473,541

359,302412,280

Subordinated borrowings

12.2

84,074

84,074--

Provisions for employee benefit

19459,980

444,377

419,433

405,630

Other non-current liabilities
Total Non-current Liabilities
TOTAL LIABILITIES

86,93583,31672,45871,186

48,704,182

50,694,544

47,023,700

49,001,102

70,424,601

71,858,606

65,885,718

67,353,464

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT MAY 31, 2023
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS“Unaudited”“Unaudited”

As at

As at

As at

As at

May 31,February 28,

May 31,February 28,

2023

2023

2023

2023

250,000

250,000

250,000

250,000

fully paid

250,000

250,000

250,000

250,000

SHARE PREMIUM ON ORDINARY SHARES

478,000

478,000

478,000

478,000

12,9689,265

12,1059,265

25,00025,00025,00025,0004,850,000

4,850,000

4,850,000

4,850,000

17,999,530

17,382,220

17,837,506

17,167,729(90,252)(83,454)--

LIABILITIES AND SHAREHOLDERS’ EQUITY (CONTINUED)SHAREHOLDERS’ EQUITY

21

SHARE CAPITAL

Authorized share capital
250,000,000 ordinary shares of Baht 1 eachIssued and paid-up share capital
250,000,000 ordinary shares of Baht 1 each,

SURPLUS ON SHARE-BASED PAYMENT TRANSACTION

20

RETAINED EARNINGS

AppropriatedLegal reserve
Reserve for business expansion
Unappropriated
OTHER COMPONENTS OF SHAREHOLDERS’ EQUITY

Exchange differences on translating
financial statements of foreign operations
Cumulative loss on cash flow hedges
TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENTNON-CONTROLLING INTERESTSTOTAL SHAREHOLDERS’ EQUITYTOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

See condensed notes to the financial statements(177,234)(89,551)(177,234)(89,551)

23,348,012

22,821,480

23,275,377

22,690,443

544,245526,600--

23,892,257

23,348,080

23,275,377

22,690,443

94,316,858

95,206,686

89,161,095

90,043,907

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF PROFIT OR LOSSFOR THE THREE-MONTH PERIOD ENDED MAY 31, 2023
“UNAUDITED”
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the three-month

For the three-month

periods ended

periods ended

May 31,

May 31,

May 31,

May 31,

2023

2022

2023

2022

1,951,107

1,809,741

1,910,111

1,772,865

2,534,315

2,628,415

2,512,317

2,602,647

240,132

266,731

60,825

65,103441,149

385,429

426,040

385,429-

104,979-

104,979

REVENUES

Credit card income
Loan income

22

Hire-purchase income
Other income
Bad debt recovery
Gain on sale of written-off receivables

28.3

Collection service income

54,72056,242--

Insurance broker business income

169,658

179,352

169,658

179,352

Dividend income--

140,600

158,600

OthersTotal Other income
Total Revenues

68,11053,76028,61428,266733,637

779,762

764,912856,626

5,459,191

5,484,649

5,248,165

5,297,241

1,990,467

1,990,104

1,828,311

1,824,550

38,30643,23427,99328,817

4,341

1,426

4,341

1,426

356

59

509

106

2,033,470

2,034,823

1,861,154

1,854,899

EXPENSES

Operating and administrative expenses
Directors and managements’ remuneration

23

Loss on impairment of assets
Loss on sale and write-off of leasehold improvements
and equipment and intangible assets other than goodwill
Total Expenses
Finance costs
Expected credit losses
PROFIT BEFORE INCOME TAX
INCOME TAX EXPENSES

24

PROFIT FOR THE PERIOD

526,972

436,704

541,347

458,491

2,093,900

1,563,477

2,043,803

1,530,153

804,849

1,449,645

801,861

1,453,698

160,833

290,889

132,084

259,498

644,016

1,158,756

669,777

1,194,200

617,310

1,114,843

669,777

1,194,200

PROFIT ATTRIBUTABLE TO :Owners of the parent
Non-controlling interests

BASIC EARNINGS PER SHAREWEIGHTED AVERAGE NUMBER OF ORDINARY SHARES

See condensed notes to the financial statements

26,70643,913644,016

1,158,756--

669,777

1,194,200

BAHT

2.47

4.46

2.68

4.78

SHARES

250,000,000

250,000,000

250,000,000

250,000,000

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE THREE-MONTH PERIOD ENDED MAY 31, 2023
“UNAUDITED”
UNIT : THOUSAND BAHT

Profit for the period

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the three-month

For the three-month

periods ended

periods ended

May 31,

May 31,

May 31,

May 31,

2023

2022

2023

2022

644,016

1,158,756

669,777

1,194,200

Other comprehensive income (loss), net of tax
Components of other comprehensive income thatwill be reclassified to profit or loss
Exchange differences on translating
financial statements of foreign operations- Owners of the parent(6,798)856--- Non-controlling interests(7,702)

1,683

-

-

Gain (loss) on cash flow hedges(87,683)

289,157(87,683)

289,157

Other comprehensive income (loss) for the period, net of tax(102,183)

291,696(87,683)

289,157

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

541,833

1,450,452

582,094

1,483,357

Owners of the parent

522,829

1,404,856

582,094

1,483,357

Non-controlling interests

19,00445,596

541,833

1,450,452

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO :See condensed notes to the financial statements

582,094

1,483,357

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE THREE-MONTH PERIOD ENDED MAY 31, 2023
“UNAUDITED”
UNIT : THOUSAND BAHT
Note

CONSOLIDATED FINANCIAL STATEMENTS

Owners of the parent
Issued andShare premium

Surplus on

paid-upon ordinary

share-based payment

share capitalsharestransaction

Retained earnings
AppropriatedLegal reserve

Unappropriated

Total

Other components of

Total

controllingshareholders’shareholders’ equity

owners ofinterests

equity375,252

20,263,963

Exchange differences

Cumulative loss

businesson translatingon cash flow hedges

expansion

financial statements

Reserve forNon-the parentof foreign operations

250,000

478,000-

Dividend paid

-

-

-

-

-

Profit for the period

-

-

-

-

-

Beginning balance as at March 1, 2022

25,0004,850,000

14,808,860(95,808)(427,341)

19,888,711

Changes during the period

Other comprehensive income

-

-

-

-

1,114,843(1,664)(1,664)43,913

1,158,756

-

-

-

-

-

856

289,157

290,013

1,683

291,696

Ending balance as at May 31, 2022

250,000

478,000-

25,0004,850,000

15,923,703(94,952)(138,184)

21,293,567

419,184

21,712,751

Beginning balance as at March 1, 2023

250,000

478,000

25,0004,850,000

17,382,220(83,454)(89,551)

22,821,480

526,600

23,348,080

9,265

-

1,114,843

Changes during the period
Surplus on share-based payment transaction

20

Dividend paid

-

-

-

-

3,703
-

-

-

-

-

-

-

-

-

-

-

-

3,703

3,703

(1,359)(1,359)Profit for the period

-

-

-

-

-

617,310617,310

26,706644,016

Other comprehensive loss

-

-

-

-

-

-

(6,798)(87,683)(94,481)(7,702)(102,183)

250,000

478,000

17,999,530(90,252)(177,234)

23,348,012

544,245

23,892,257

Ending balance as at May 31, 2023

See condensed notes to the financial statements

12,96825,0004,850,000---

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)
FOR THE THREE-MONTH PERIOD ENDED MAY 31, 2023
“UNAUDITED”
UNIT : THOUSAND BAHT

Note

SEPARATE FINANCIAL STATEMENTS

Issued andShare premium

paid-upon ordinary

share-based payment

share capitalsharestransaction

Retained earnings

Surplus on

AppropriatedLegal reserve

Other components of

Unappropriated shareholders’ equity

Reserve for

Cumulative loss

businesson cash flow hedges

Total
shareholders’equityexpansion
Beginning balance as at March 1, 2022

250,000

478,000-

25,000----4,850,000

14,703,739(427,341)

19,879,398-

1,194,200-

1,194,200

Changes during the period
Profit for the period

-

-

-

-

289,157

289,157

Ending balance as at May 31, 2022

Other comprehensive income

250,000

478,000-

25,0004,850,000-

15,897,939-(138,184)

21,362,755

Beginning balance as at March 1, 2023

250,000

478,000

9,265

25,0004,850,000

17,167,729(89,551)

22,690,443

2,840

Changes during the period
Surplus on share-based payment transaction

-

-

-

-

-

-

2,840

Profit for the period

-

-

-

-

-

669,777-

669,777

Other comprehensive loss

-

-

-

-

-

-

250,000

478,000

Ending balance as at May 31, 2023

See condensed notes to the financial statements

20

12,10525,0004,850,000

17,837,506(87,683)(87,683)(177,234)

23,275,377

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF CASH FLOWSFOR THE THREE-MONTH PERIOD ENDED MAY 31, 2023
“UNAUDITED”
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the three-month

For the three-month

periods ended

periods ended

May 31,

May 31,

May 31,

May 31,

2023

2022

2023

2022

644,016

1,158,756

669,777

1,194,200

CASH FLOWS FROM OPERATING ACTIVITIESProfit for the period
Adjustments for:
Income tax expenses

160,833

290,889

132,084

259,498

Expected credit losses

2,093,900

1,563,477

2,043,803

1,530,153

191,701

203,600

166,756

173,730

65,14257,54553,97047,215

Depreciation of leasehold improvements and equipment
and right-of-use assets
Amortization of intangible assets other than goodwill
Loss on sale and write-off of leasehold improvement andequipment and intangible assets other than goodwill
Employee benefit expense

19

Employee joint investment program expense

20

Gain on sale of written-off receivables

356

59

509

106

16,16335,494

14,20026,956

6,846-

Unrealized (gain) loss on exchange rate-

Interest income

-

5,603

(104,979)(104,979)

1,341(5,822)(3,529,274)(3,400,079)(3,187,858)(3,092,093)

(87)

(21)

(87)

(21)

Gain on cancellation of lease agreements
Loss on impairment of assets

-

-

4,341

1,426

Dividend income

-

4,341
-

1,426

(140,600)(158,600)

Finance costs

526,972

436,704

541,347

458,491

180,909242,871

305,186

330,260(3,557,069)

Changes in operating assets and liabilities
Operating assets (increase) decrease
Trade and other current receivables(1,947,585)(3,365,714)(1,709,349)

Other current assets(4,625)

13,654(879)

447

Other non-current assets

5,110

1,777

2,101

3,333

Trade and other current payables(2,000)133,276

11,235

130,784

Other current liabilities

27,780488

22,328(506)

Other non-current liabilities

3,717

1,466

1,264

9,477

Operating liabilities increase (decrease)(1,736,694)(2,972,182)(1,368,114)(3,083,274)

Interest received

Net cash flows used in operations

3,522,414

3,343,024

3,179,503

3,029,644

Dividend received--

140,600

158,600(551,026)

Finance costs paid

(525,406)(516,634)(553,205)

Income tax paid

(27,342)(32,882)(6,773)(8,115)(560)(20,907)(397)(11,841)

Employee benefits paid

19

Cash paid for employee joint investment program

20

Net cash flows provided by (used in) operating activities(3,143)
1,229,269(199,581)(2,763)
1,388,851(466,012)

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENT OF CASH FLOWS (CONTINUED)
FOR THE THREE-MONTH PERIOD ENDED MAY 31, 2023
“UNAUDITED”
UNIT : THOUSAND BAHT

Notes

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

For the three-month

For the three-month

periods ended

periods ended

May 31,

May 31,

May 31,

May 31,

2023

2022

2023

2022

33,920---(63,722)(44,441)(40,605)(43,038)

CASH FLOWS FROM INVESTING ACTIVITIESCash received from fixed deposits at banks under obligations
Cash paid for purchase of leasehold improvements
and equipment

4.2

Cash received from sale of leasehold improvements and equipment
Cash paid for purchase of intangible assets other than goodwill

393

164

229

82

(35,811)(182,015)(34,629)(168,634)(65,220)(226,292)(75,005)(211,590)

4.4

24,340,333

25,945,969

23,520,000

25,192,203(28,663,443)

4.2

Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIESCash received from bank overdrafts and short-termborrowings from financial institutions
Cash repayments for bank overdrafts and
4.4(24,433,859)(29,565,705)(23,680,000)

Cash received from long-term borrowings

short-term borrowings from financial institutions

4.4

1,653,500

6,329,662

1,653,500

6,329,662

Cash repayments for long-term borrowings

4.4(2,827,136)(2,165,341)(2,800,000)(2,000,000)

4.4

-

-

136,552

137,395

securitization project

4.4

-

-

(136,552)(137,395)

Cash paid for lease liabilities

4.4

Cash received from long-term borrowings under
securitization project
Cash repayments for long-term borrowings under

Cash received from sales of written-off receivables
Dividend paid
Net cash flows provided by (used in) financing activities(138,033)(134,089)(122,184)(117,206)

24,680104,979

24,680104,979(555)(2,477)-(1,381,070)

512,998(1,404,004)

846,195(217,021)

87,125(90,158)

168,593(3,360)(2,212)--(220,381)

84,913(90,158)

168,593

3,816,356

4,235,603

2,159,810

2,639,136

3,595,975

4,320,516

2,069,652

2,807,729-

Net increase (decrease) in cash and cash equivalents
before effect of exchange rate
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

See condensed notes to the financial statements

4.1

AEON THANA SINSAP (THAILAND) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESCONDENSED NOTES TO THE FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIOD ENDED MAY 31, 2023
“UNAUDITED”

1.

GENERAL INFORMATION AND OPERATIONS OF THE COMPANY AND ITS SUBSIDIARIES(THE “GROUP”)

The Company was registered as a limited company under the Civil and Commercial Codeon September 18, 1992 and registered to be Public Limited Company with the Ministryof Commerce on August 7, 2001. The Company was listed on The Stock Exchange ofThailand on December 11, 2001. The Company’s head office is located at 388, 27th Floor,
Exchange Tower, Sukhumvit Road, Klongtoey, Bangkok. The Company’s main objective
is to do the retail finance services which consist of credit card, hire-purchase, personalloans and others. Subsequently, on October 6, 2020, the Company has registered anotherobjective which is to conduct life and non-life insurance broker business.
AEON Financial Service Co., Ltd,. incorporated in Japan, and ACS Capital Corporation
Limited, incorporated in Thailand, are major shareholders with 35.12% and 19.20%
shareholdings, respectively. AEON Co., Ltd., incorporated in Japan, is the ultimate parent
company.
The Company has subsidiaries which are under its control in finance and operations asmentioned in Note 2.5 and Note 8.
Coronavirus Disease 2019 Pandemic
A novel coronavirus (“COVID-19”) pandemic started in early 2020 in Thailand andcountries the Group operate. It clearly affects overall Thailand and global economy,
including employees, customers, business partners and business operations of the Groupand the Company.
In order to mitigate the impacts, the Company provides supports to customers as the relief
measurement for loan to affected customer from the impact of COVID-19, following to
the Bank of Thailand’s the relief measurement to help debtors from the Thai economic
situation, by reducing minimum payment rates for credit card and personal loan.
Moreover, AEON Microfinance (Myanmar) Co., Ltd. (the “subsidiary”) has temporarilysuspended new loans to customers due to the impact of the political turmoil in Myanmar
since February 1, 2021. However, the subsidiary has resumed providing new loans toexisting customers starting January 22, 2022, and to new customers starting January 12,2023. The subsidiary has continuously reduced operation costs and continued pursuingdebt collection.
Nevertheless, the Group’s and Company’s management will continue to monitor theongoing development and regularly assess the financial impact in respect of valuation ofassets, provisions and contingent liabilities.

-2-

2.

BASIS FOR PREPARATION AND PRESENTATION OF THE INTERIM CONSOLIDATEDAND SEPARATE FINANCIAL STATEMENTS

2.1

These interim consolidated and separate financial statements are prepared in Thai
Baht and in compliance with Thai Accounting Standard No. 34 “Interim Financial
Reporting” and accounting practices generally accepted in Thailand. The Company
presents the condensed notes to interim financial statements and the additional
information is disclosed in accordance with the regulations of the Office of
the Securities and Exchange Commission (the “SEC”).
All financial information presented has been rounded to the nearest thousand Baht
unless otherwise stated.

2.2

The interim consolidated and separate financial statements for the three-month
periods ended May 31, 2023 and 2022 are prepared by the management of theCompany and are unaudited. However, in the opinion of the Company, alladjustments necessary for a fair presentation have been reflected therein.
The consolidated and separate statements of financial position as at February 28,
2023, presented herein for comparison, have been derived from the consolidated
and separate financial statements of the Company for the year then ended which
had been previously audited.

2.3

The unaudited results of operations presented in the three-month period ended
May 31, 2023 are not necessarily an indication nor anticipation of the operating
results for the full year.

2.4

Certain financial information which is normally included in the annual financial
statements prepared in accordance with TFRSs, but which is not required for interim
reporting purposes, has been omitted. Therefore, the interim financial statements
for the three-month period ended May 31, 2023 should be read in conjunction withthe audited financial statements for the year ended February 28, 2023.

2.5

Material intercompany transactions between the Company and its subsidiaries
have been eliminated from this interim consolidated financial statements.
The interim consolidated financial statements for the three-month period ended
May 31, 2023 have included the subsidiaries’ interim financial statements whichwere reviewed.

-3-

For the three-month periods ended May 31, 2023 and 2022, the subsidiaries
included in the consolidated financial statements are as follows:Business typeCountry ofRegistration dateregistration

Percentage of direct andindirect holdings (%)
for the three-month
periods ended May 31,
2023

2022

Collection servicer

ThailandMarch 13, 2007

100.00100.00Non-life insurance broker

ThailandJuly 1, 2013100.00100.00Retail finance business

Cambodia

October 5, 2011

50.00

50.00

Retail finance business

MyanmarNovember 2, 2012

100.00100.00Retail finance business

Laos

January 11, 2013100.00100.00ATS Rabbit Special Purpose

Special purpose juristic

ThailandMarch 20, 2015

48.75

48.75

Vehicle Company Limited(3)person in securitization projects
ThailandAugust 2, 2022

99.00

-

ACS Servicing (Thailand)Company Limited
ACSI (Thailand) Co., Ltd.

and life insurance broker
AEON Specialized Bank
(Cambodia) Plc.(4)AEON Microfinance (Myanmar)
Company Limited
AEON Leasing Service (Lao)Company Limited(1)AEON Asset Management

Non-performing assets(Thailand) Co., Ltd.(2)management(1)

The Company indirectly holds shares of AEON Leasing Service (Lao) Company Limited through ACS Servicing (Thailand) Company
Limited with 3.71% shareholdings.

(2)

The Company indirectly holds shares of AEON Asset Management (Thailand) Co., Ltd. through ACS Servicing (Thailand) Co., Ltd.
with 1.00% shareholdings.

(3)

The Company has the power to control over ATS Rabbit Special Purpose Vehicle Company Limited because the Company has power
to appoint the board of directors and rights to provide certain service which is significantly impacted by the performance of underlying
assets and has rights to get variable return from such company under securitization project.

(4)

The Company has the power to control over AEON Specialized Bank (Cambodia) Plc. in accordance with the requirement of TFRS
No. 10 “Consolidated Financial Statements”.

The significant accounting policies used for the financial statements of the subsidiaries
are adjusted to be the same as those of the Company.
2.6

The financial statements of the subsidiaries used in the preparation of consolidated
financial statements are as of a date or for a period that is different from that of theconsolidated financial statements. However, the Company consolidated thefinancial information of the subsidiaries using the most recent financial statementsof the subsidiaries adjusted for the effects of significant transactions or events that
occur between the date of those financial statements and the date of theconsolidated financial statements. The dates of the end of the reporting period of
the financial statements of the aforementioned subsidiaries are as follows:
The date of the end of the reporting period
in preparation of
the consolidated financial statements
for the three-month periods ended May 31,
2023
2022
Subsidiaries
ACS Servicing (Thailand) Company Limited
ACSI (Thailand) Co., Ltd.
AEON Specialized Bank (Cambodia) Plc.
AEON Microfinance (Myanmar) Company Limited
AEON Leasing Service (Lao) Company Limited
AEON Asset Management (Thailand) Co., Ltd.

March 31, 2023
March 31, 2023
March 31, 2023
March 31, 2023
March 31, 2023
March 31, 2023

March 31, 2022
March 31, 2022
March 31, 2022
March 31, 2022
March 31, 2022
-

-4-

2.7

Thai Financial Reporting Standards affecting the presentation and disclosure in
the current period financial statements
During the period, the Group and the Company have adopted the revised financial
reporting standards issued by the Federation of Accounting Professions which are
effective for fiscal years beginning on or after January 1, 2023. These financial reporting
standards were aimed at alignment with the corresponding Thai Financial ReportingStandards, with most of the changes directed towards revision of wording andterminology and clarification of accounting requirements. The adoption of thesefinancial reporting standards does not have significant impact on the Group’s and theCompany’s interim financial statements.
Accounting Treatment Guidance on “Guidelines for supporting debtors affected by
COVID-19”
The objective of this accounting treatment guidance is to grant the temporary relief
measures for entities helping their debtors affected from COVID-19 with thesupporting period during January 1, 2022 to December 31, 2023 or until there are
any changes from the Bank of Thailand, which requires the compliance for suchchanges. The entities who support their debtors and elect to apply the temporary
relief measures according to this accounting treatment guidance should disclose
information as specified in this accounting treatment guidance.
For the three-month period ended May 31, 2023, the Group and the Company
have adhered to such Accounting Treatment Guidance regarding staging ofreceivables. For receivables that are credit impaired but still have the potential for
repayment, the Group and the Company will classify the receivables as low credit
risk (Stage 1) if the debtor has been repaying for 3 consecutive months or
3 payment periods, whichever is longer.
In the case where debt restructuring results in the original effective interest rate notreflecting the projected cash flows from such debts, the Group and the Company
will adhere to such Accounting Treatment Guidance by using the new effective
interest rate to calculate the present value of the restructured debts under theguidelines in the relief measurement to help debtors following the Bank ofThailand’s circular letter.

2.8

Thai Financial Reporting Standards announced in the Royal Gazette but not yet
effective
On August 19, 2022, Thai Financial Reporting Standard No.17 “Insurance Contracts”
has been announced in the Royal Gazette and will be effective for the financial
statements for the period beginning on or after January 1, 2025 onwards.
The Group’s and the Company’s management will adopt such TFRS in the
preparation of the Group’s and the Company’s financial statements when it
becomes effective. The Group’s and the Company’s management is in the process
to assess the impact of this TFRS on the financial statements of the Group and theCompany in the period of initial application.

-5-

3.

SIGNIFICANT ACCOUNTING POLICIESThe interim financial statements have been prepared based on the basis, accounting
policies and method of computation consistent with those used in the financial statements
for the year ended February 28, 2023.
4.

SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION

4.1

Cash and cash equivalents as at May 31, 2023 and February 28, 2023 are as follows:
CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS“Unaudited”

Cash
Deposits at banks - call deposits
Total cash and cash equivalents

4.2

FINANCIAL STATEMENTS“Unaudited”

As at

As at

As at

As at

May 31,February 28,

May 31,February 28,

2023

2023

2023

2023

Baht ’000

Baht ’000

Baht ’000

Baht ’000

431,647
3,164,328
3,595,975

452,796
3,363,560
3,816,356

391,137
1,678,515
2,069,652

422,844
1,736,966
2,159,810

Cash paid for purchase of leasehold improvements and equipment, and intangible
assets other than goodwill for the three-month periods ended May 31, 2023 and2022 are as follows:
CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

2023
Baht ’000

2022
Baht ’000

2023
Baht ’000

8,655
64,05934,47020,363

8,458
41,091

34,21819,21372,71454,83349,54953,431(63,722)(44,441)(40,605)(43,038)

Liabilities recorded - carried forward

8,992

10,392

8,944

10,393

Intangible assets other than goodwill
Liabilities recorded - brought forward
Purchase of intangible assets other than goodwill

46,661
14,798146,101
56,972

46,41013,425

145,885
43,702

Leasehold improvements and equipment
Liabilities recorded - brought forward
Purchase of leasehold improvements and equipment
Less Cash paid for purchase ofleasehold improvements and equipment

2022
Baht ’000

61,459203,073

59,835

189,587

Less Cash paid for purchase ofintangible assets other than goodwill(35,811)(182,015)(34,629)(168,634)

Liabilities recorded - carried forward

25,64821,05825,206

20,953

-6-

4.3

The Company had non-cash items relating to sale of the rights on loans receivableto ATS Rabbit Special Purpose Vehicle Company Limited, a subsidiary, which
the Company had sold loans receivable to. During the three-month periods ended
May 31, 2023 and 2022, such sale was settled by decreasing the Seller loan Accountof Baht 4.06 million and Baht 22.74 million, respectively, instead of cash receipt.

4.4 Changes in liabilities arising from financing activities for the three-month periods
ended May 31, 2023 and 2022 are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

Beginningbalance
as atMarch 1,
2023
Baht ’000

Financing cash flows
Cash
Cash
received
paid

Baht ’000

Baht ’000

Non-cash changes
Differences
Otherson translating
foreigncurrencies
Baht ’000
Baht ’000“Unaudited”
Endingbalance
as at
May 31,
2023
Baht ’000

Bank overdrafts and short-termborrowings from financial
institutions
Long-term borrowings

4,485,424

24,340,333(24,433,859)(5,452)

51,989,485

1,653,500(2,827,136)(625,631)(869)

50,189,349

Long-term debentures

9,580,142--(158,083)(233)

9,421,826

917,668-(981)

62,064*

840,718

Lease liabilities(138,033)

4,386,446-*The amount comprises addition of lease agreements and extensions of existing lease agreements.

CONSOLIDATED FINANCIAL STATEMENTS“Unaudited”
Beginning

Financing cash flows

Non-cash changes

balance

Cash

Cash

Differences

as atreceivedpaid

on translating

as atMarch 1,

foreign

May 31,2022

currencies

2022

Baht ’000

Baht ’000

Baht ’000

Baht ’000

OthersEndingBaht ’000

balance

Baht ’000

Bank overdrafts and short-termborrowings from financial
9,171,904

25,945,969(29,565,705)(21,854)-

5,530,314

Long-term borrowings

47,986,662

6,329,662(2,165,341)

570,249(35,494)

52,685,738

Long-term debentures

8,259,554--(115,213)

1,578

8,145,919

624,978-(308)

368,133*

858,714

institutions

Lease liabilities(134,089)*The amount comprises addition of lease agreements and extensions of existing lease agreements.

-7-

SEPARATE FINANCIAL STATEMENTS

Bank overdrafts and short-termborrowings from financial
institutions
Long-term borrowings
Long-term borrowings under
securitization projectLong-term debentures
Lease liabilities

Beginningbalance
as atMarch 1,
2023
Baht ’000

Financing cash flows
Cash
Cash
received
paid

Non-cash changes
Differences
Otherson translating
foreigncurrencies
Baht ’000
Baht ’000

Baht ’000

Baht ’000

3,440,000
49,141,338

23,520,000
1,653,500(23,680,000)(2,800,000)(586,784)

1,260,991
8,107,060
802,204

136,552-(136,552)(122,184)(158,083)-“Unaudited”
Endingbalance
as at
May 31,
2023
Baht ’000(869)

3,280,000
47,407,185(36,847)(233)
58,351*

1,224,144
7,948,744
738,371

Non-cash changes
Differences
Otherson translating
foreigncurrencies
Baht ’000
Baht ’000“Unaudited”
Endingbalance
as at
May 31,
2022
Baht ’000-*The amount comprises addition of lease agreements and extensions of existing lease agreements.

SEPARATE FINANCIAL STATEMENTS

Bank overdrafts and short-termborrowings from financial
institutions
Long-term borrowings
Long-term borrowings under
securitization projectLong-term debentures
Lease liabilities

Beginningbalance
as atMarch 1,
2022
Baht ’000

Financing cash flows
Cash
Cash
received
paid

Baht ’000

Baht ’000

7,941,240
44,896,115

25,192,203
6,329,662(28,663,443)(2,000,000)

584,844(35,495)

4,470,000
49,775,126

1,401,709
6,786,472
552,425

137,395-(137,395)(117,206)(115,213)-(15,187)
1,578
367,144*

1,386,522
6,672,837
802,363*The amount comprises addition of lease agreements and extensions of existing lease agreements.

5.

TRADE RECEIVABLES

5.1 Trade receivables as at May 31, 2023 and February 28, 2023 consist of the following:
CONSOLIDATEDFINANCIAL STATEMENTS

Trade receivables
Trade receivables under securitization project- ATS Rabbit Special Purpose Vehicle
Company Limited
Total
Less Allowance for expected credit losses
Total trade receivables

SEPARATE
FINANCIAL STATEMENTS“Unaudited”
As at
May 31,
2023
Baht ’000

As at
February 28,
2023
Baht ’000“Unaudited”
As at
May 31,
2023
Baht ’000

As at
February 28,
2023
Baht ’000

92,573,716

92,675,988

87,421,781

87,599,547

1,224,144
93,797,860(10,199,200)
83,598,660

1,260,991
93,936,979(10,125,258)
83,811,721

1,224,144
88,645,925( 9,661,385)
78,984,540

1,260,991
88,860,538(9,530,542)
79,329,996

As the securitization transaction under the Receivables Sale and Purchase Agreement
for transferred rights on loans receivable with ATS Rabbit Special Purpose Vehicle
Company Limited does not qualify for derecognition of financial assets according to
TFRS 9, the Company continues to recognize the full carrying amount of thesereceivables and uses them as collateral for long-term borrowings under the
securitization project (see Note 5.5).

-8-

As at May 31, 2023 and February 28, 2023, trade receivables are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

Hire-purchase receivable
Hire-purchase and accrued
interest receivable
Less Unearned financing income“Unaudited”
As at May 31, 2023
Due within
Due after
Total
1 year
1 yearBaht ’000
Baht ’000
Baht ’000

As at February 28, 2023
Due within
Due after
Total
1 year
1 yearBaht ’000
Baht ’000
Baht ’000

2,529,799(259,950)

3,827,364

6,357,163(385,491)(645,441)

2,483,958(251,126)

3,625,375(347,096)

6,109,333(598,222)

2,269,849

3,441,873

5,711,722

2,232,832

3,278,279

5,511,111

Less Allowance for expectedcredit losses(195,328)(361,653)(556,981)(185,051)(314,840)(499,891)

Hire-purchase and accrued
interest receivable - net

2,074,521

3,080,220

5,154,741

2,047,781

2,963,439

5,011,220

44,128,103

232,836

44,360,939

44,669,914

208,350

44,878,264(5,879,044)(26,724)(5,905,768)(5,973,197)(27,137)(6,000,334)

38,249,059

206,11238,455,171

38,696,717

181,21338,877,930

43,648,815-

43,648,815

43,474,347-

43,474,347(3,736,095)-(3,736,095)(3,624,750)-(3,624,750)

39,912,720-

39,912,720 39,849,596
39,849,597-

39,849,597

8,072

-

8,072

4,634

-

4,634

(356)

-

(356)

(283)

-

(283)

7,716

-

7,716

4,351

-

4,351

Loans receivable
Loans and accrued interest
receivable
Less Allowance for expectedcredit losses
Loans and accrued interest
receivable - net
Credit card receivable
Credit card and accrued
interest receivable
Less Allowance for expectedcredit loss
Credit card and accrued
interest receivable - net
Receivable from rendering
the collection service
Receivable from rendering
the collection service
Less Allowance for expectedcredit losses
Receivable from rendering
the collection service - net
Receivable from insurance
broker businessTotal trade receivables

68,31280,312,328

3,286,332

68,312

68,62383,598,660

80,667,069

3,144,652

68,62383,811,721

-9-

SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Due within
Due after
Total
1 year
1 yearBaht ’000
Baht ’000
Baht ’000
Hire-purchase receivable
Hire-purchase and accrued
interest receivable
Less Unearned financing income

As at February 28, 2023
Due within
Due after
Total
1 year
1 yearBaht ’000
Baht ’000
Baht ’000

927,638(259,950)

2,156,022(385,491)

3,083,660(645,441)

904,756(251,126)

2,033,501(347,096)

2,938,257(598,222)

667,688

1,770,531

2,438,219

653,630

1,686,405

2,340,035

Less Allowance for expectedcredit losses(92,927)(246,419)(339,346)(73,640)(189,996)(263,636)

Hire-purchase and accrued
interest receivable - net

574,761

1,524,112

2,098,873

579,990

1,496,409

2,076,399

43,356,113-

43,356,113

43,882,307-

43,882,307(5,629,613)-(5,629,613)(5,697,631)-(5,697,631)

37,726,500-

37,726,500

38,184,676-

38,184,676

42,783,281-

42,783,281

42,569,573-

42,569,573(3,692,426)-(3,692,426)(3,569,275)-(3,569,275)

39,090,855-

39,090,855

39,000,298-

39,000,298

Loans receivable
Loans and accrued interest
receivable
Less Allowance for expectedcredit losses
Loans and accrued interest
receivable - net
Credit card receivable
Credit card and accrued
interest receivable
Less Allowance for expectedcredit losses
Credit card and accrued
interest receivable - net
Receivable from insurance
broker businessTotal trade receivables

68,312
77,460,428

1,524,112

68,312

68,62378,984,540

77,833,587

1,496,409

68,62379,329,996

- 10 -

5.2 Quality of assets
Staging analysis for trade receivables as at May 31, 2023 and February 28, 2023 are
as follows:
CONSOLIDATED FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023

As at February 28, 2023

Trade

Allowance for

Total trade

Trade

Allowance for

Total tradereceivables

expected

receivables

receivables

expected

receivables

credit losses

credit losses

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

84,530,359(4,342,997)

80,187,362

85,031,652(4,397,716)

80,633,936

3,726,124(1,691,401)

2,034,723

3,564,992(1,658,080)

1,906,912

Low credit risk receivables(Stage 1)
Significant increase in credit
risk receivables (Stage 2)
Default receivables in credit risk
(Stage 3)
Total

5,541,377(4,164,802)

1,376,575

5,340,335(4,069,462)

1,270,873

93,797,860(10,199,200)

83,598,660

93,936,979(10,125,258)

83,811,721

SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023

As at February 28, 2023

Trade

Allowance for

Total trade

Trade

Allowance for

Total tradereceivables

expected

receivables

receivables

expected

receivables

credit losses

credit losses

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Baht ’000

80,005,077(4,240,780)

75,764,297

80,649,277(4,291,875)

76,357,402

3,559,161(1,632,951)

1,926,210

3,379,367(1,590,702)

1,788,665

5,081,687(3,787,654)

1,294,033

4,831,894(3,647,965)

1,183,929

88,645,925(9,661,385)

78,984,540

88,860,538(9,530,542)

79,329,996

Low credit risk receivables(Stage 1)
Significant increase in credit
risk receivables (Stage 2)
Default receivables in credit risk
(Stage 3)
Total

Trade receivables as at May 31, 2023 and February 28, 2023 classified by aging are
as follows:
CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS“Unaudited”“Unaudited”

As at

As at

As at

As at

May 31,February 28,

May 31,February 28,

2023

2023

2023

2023

Baht ’000

Baht ’000

Baht ’000

Baht ’000

Less than 3 months

88,472,489

88,798,527

83,780,246

3 months up

5,325,371

5,138,452

4,865,679

84,230,528
4,630,010

Total

93,797,860

93,936,979

88,645,925

88,860,538

Less Allowance for expected credit losses(10,199,200)(10,125,258)(9,661,385)(9,530,542)

Total trade receivables

83,598,660

83,811,721

78,984,540

79,329,996

- 11 -

5.3

Troubled debt restructuring
For the three-month periods ended May 31, 2023 and 2022, the Company
recognized interest income on restructured debts totaling Baht 16.76 million and
Baht 20.54 million, respectively.
The Company had outstanding balances of credit card receivable, hire-purchasereceivable and loans receivable as at May 31, 2023 and February 28, 2023, as follows:
CONSOLIDATED FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Number ofAmountdebtors
Baht ’000
Restructured trade receivables
Non-restructured trade receivables
Total

As at February 28, 2023
Number ofAmountdebtors
Baht ’000

14,0652,767,869

560,410
93,161,066

14,696
3,631,664

557,681
93,306,041

2,781,934

93,721,476

3,646,360

93,863,722

SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Number ofAmountdebtors
Baht ’000
Restructured trade receivables
Non-restructured trade receivables
Total

As at February 28, 2023
Number ofAmountdebtors
Baht ’000

13,9892,524,491

559,43188,018,182

14,6292,549,101

556,753
88,235,162

2,538,480

88,577,613

2,563,730

88,791,915

As at May 31, 2023 and February 28, 2023, the Company had no commitment toprovide additional loans to its restructured debtors after debt restructuring.
5.4

Allowance for expected credit losses
Allowance for expected credit losses as at May 31, 2023 and February 28, 2023
are as follows:
CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS“Unaudited”
As at
May 31,
2023
Baht ’000

As at
February 28,
2023
Baht ’000“Unaudited”
As at
May 31,
2023
Baht ’000

As at
February 28,
2023
Baht ’000

Beginning balance
Expected credit losses
Written-off bad debts

10,125,258
2,228,532(2,154,590)

10,951,455
7,756,734(8,582,931)

9,530,542
2,211,223(2,080,380)

9,972,970
7,730,532(8,172,960)

Ending balance

10,199,200

10,125,258

9,661,385

9,530,542

- 12 -

5.5

Transfers of financial assets
The Company entered into the Receivables Sale and Purchase Agreement with
Special Purposes Vehicle Company, which was incorporated under the Civil andCommercial Code of Thailand to be special purpose vehicle (SPV) under the Royal
Enactment on Special Purpose Juristic Persons for Securitization B.E. 2540 (1997).
Under the securitization plan which was approved by the SEC, the Company sold anamount of revolving receivables and the SPV also appointed the Company to act as
the servicer responsible for collecting payments from its obligor under
the Receivables Sale and Purchase Agreement and Servicing Agreement.
Details of aforementioned sales of receivables are summarized as follows:
ATS Rabbit*
Approved date of the securitization project by the SEC

October 2, 2015

Initial selling date

October 29, 2015

Type of transferred receivables

Loans receivable

Revolving period

October 2015 - October 2025 (approximately)

Initial sale of receivables
Net book value of initial receivables

Baht

456,076,200

Proceeds from transfer of the rights in receivables

Baht

433,272,390

Subordinated lendings

Baht

Minimum seller loans - pari passu with debentures

Baht

50,081,313
None

Number of contracts
Average principal amount outstanding

49,225
Baht

Interest rate

9,265
25% p.a.

* ATS Rabbit Special Purpose Vehicle Company Limited (Subsidiary)

The Company does not recognize other assets obtained in the transfer of financial
assets including retained interests in the financial statements because it is notpractical to estimate their reliable fair values.
On October 22, 2015, the Company entered into the Receivables Sale andPurchase Agreement with ATS Rabbit Special Purpose Vehicle Company Limited
which was registered as a special purpose vehicle company under the Civil andCommercial Code of Thailand for the purpose of implementing or facilitating
the securitization in accordance with the securitization project approved by the Officeof the SEC on October 2, 2015 for transferred rights, title, interest and benefits in
respect of the Initial Receivables, the Future Receivables and the Additional
Receivables on the term of the Agreement.

- 13 -

During the life of the securitization project, the Company may repurchase therights on the Purchased Receivables with ATS Rabbit in the following circumstances:
1. When the Company has breached its representations and warrantees with respect
to the Purchased Receivables which are ineligible. The Company is obliged torepurchase such ineligible receivables on the next Monthly Purchase Date.
2. The Company, as the collection agent, may exercise the Clean-up Call Option
for repurchase of remaining Purchased Receivables whenever the continued
servicing of the Purchase Receivables is deemed to be burdensome.
3. The Company may exercise the Tax Redemption Option for repurchase ofremaining Purchased Receivables, where there is incurred taxes other thancorporate income tax and special business tax.
For the three-month periods ended May 31, 2023 and 2022, transactions relating to
the transfers of financial assets under the securitization project are summarized asfollows:
2023
Million
Baht
Transfers of future and additional receivables (at book value)- Loans receivable (ATS Rabbit)

Cash collection on behalf of a Special Purpose Vehicle- Loans receivable (ATS Rabbit)

Servicing income on cash collection from a Special Purpose Vehicle- Loans receivable (ATS Rabbit)

6.

2022
Million
Baht

132
132

160
160

219
219

228
228

17
17

19
19

LONG-TERM LOAN TO A SUBSIDIARY

As at May 31, 2023 and February 28, 2023, the Company has long-term loan to a
subsidiary (see Note 25.2.1) in the separate financial statements as follows:

Due within
the yearInterest rate
p.a. (%)

Foreign currency
MillionLoans in USD currency
2022 - 2026
8.50
Less Long-term loan to a subsidiary due within 1 year
Total long-term loan to a subsidiary

Such long-term loan to a subsidiary is unsecured.

3.20

SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31,
As at February 28,
2023
2023
Baht equivalent
Baht equivalent
Baht ’000
Baht ’000
110,619(27,655)
82,964

111,960(27,990)
83,970- 14 -

7.

LOANS FROM PURCHASE OF ACCOUNTS RECEIVABLE

As at May 31, 2023 and February 28, 2023, loans from purchase of accounts receivable areas follows:
CONSOLIDATED FINANCIAL STATEMENTS“Unaudited”
As at May 31,
2023
Baht ’000

As at February 28,
2023
Baht ’000

49,815
1,702
51,517

11,293
1,330
12,623(2,936)(490)

48,581

12,133Hire-purchase receivables
Add Accrued Interest
Less Current portion of loans receivable frompurchase of accounts receivable
Loans receivable from purchase ofaccounts receivable - net of current portion

On May 24, 2022, ACS Servicing (Thailand) Co., Ltd. (“the Subsidiary”) bought written-off
receivables under hire-purchase agreements by a bidding process from an unrelated local
company (“the seller”) with the selling price of Baht 11.41 million. On the same date,the Subsidiary entered into the Asset Sale and Purchase Agreement with the seller and alreadypaid the payment in full to the seller. The agreement set out the conditions and terms in respectof the sales, assignment and conveyance of the subsidiary’s rights, title, claim, obligation,
liability and interest in the written-off receivables under hire-purchase agreements.
On January 6, 2023 and March 31, 2023, ACS Servicing (Thailand) Co., Ltd. (“the Subsidiary”)
bought written-off receivables under hire-purchase agreements by a bidding process fromunrelated local companies (“the sellers”) with the selling price of Baht 27.12 million and Baht
11.79 million, respectively. On the same date, the Subsidiary entered into the Asset Sale andPurchase Agreement with the sellers and already paid the payment in full to the sellers.
The agreement set out the conditions and terms in respect of the sales, assignment andconveyance of the subsidiary’s rights, title, claim, obligation, liability and interest in the writtenoff receivables under hire-purchase agreements.
8.

INVESTMENTS IN SUBSIDIARIESAs at May 31, 2023 and February 28, 2023, investments in subsidiaries (see Note 25.1)
which are accounted for using the cost method in the separate financial statements are
as follows:
SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Ownership
Cost%
Baht ’000
ACS Servicing (Thailand) Company Limited
ACSI (Thailand) Co., Ltd.
AEON Specialized Bank (Cambodia) Plc.
AEON Microfinance (Myanmar) Company Limited
AEON Leasing Service (Lao) Company Limited
ATS Rabbit Special Purpose Vehicle Company Limited
AEON Asset Management (Thailand) Company Limited
Total

100.00100.0050.00
100.00
96.29
48.75
98.00

175,349.1
149,224.3
323,580.0
455,403.3
107,333.1
19.5
24,499.7
1,235,409.0

As at February 28, 2023
Ownership
Cost%
Baht ’000
100.00100.0050.00
100.00
96.29
48.75
98.00

175,349.1
149,224.3
323,580.0
455,403.3
107,333.1
19.5
24,499.7
1,235,409.0

- 15 On April 11, 2022, the Board of Directors’ Meeting of ACSI (Thailand) Co., Ltd.
(the “Subsidiary”) had a special resolution to approve the Subsidiary’s dissolution.
Subsequently, on April 28, 2022, the Annual General Meeting of Shareholders of the Subsidiary
had the resolutions to approve the Subsidiary’s dissolution. The Subsidiary has registered
the dissolution with the Department of Business Development, Ministry of Commerce onJune 30, 2022. As at May 31, 2023, the Subsidiary is in process of liquidation.
On August 2, 2022, the Company has established a new subsidiary under the name “AEON
Asset Management (Thailand) Company Limited” (the “Subsidiary”), whereas the Company
holds 98% of the shares. The initial registered capital is Baht 25 million, which were fully paid.
The objective of the Subsidiary is to purchase and manage non-performing assets.
9.

INVESTMENTS IN EQUITY SECURITIES DESIGNATED AT FAIR VALUE THROUGHPROFIT OR LOSS

Investments in equity securities designated at fair value through profit or loss as at
May 31, 2023 and February 28, 2023 consist of the following:
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Ownership
Fair Value%
Baht ’000
AEON (Thailand) Co., Ltd.(1)PT. AEON Credit Service Indonesia (2)ACS Trading Vietnam Company Limited
Total
(1)
(2)

3.82
2.59
1.59

5,062
-

As at February 28, 2023
Ownership
Fair Value%
Baht ’000
3.82
2.59
1.59

5,062

5,062
5,062

340,000 shares of Baht 100 each, Baht 25 called up
173 shares of IDR 30 million each, par value of IDR 30 million, fully paid

The fair values of investments in equity securities designated at fair value through profit orloss are categorized into level 3.
10.

INVESTMENT IN EQUITY SECURITIES DESIGNATED AT FAIR VALUE THROUGH OTHERCOMPREHENSIVE INCOME

Investment in equity securities designated at fair value through other comprehensive
income as at May 31, 2023 and February 28, 2023 consist of the following:
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Ownership
Fair Value%
Baht ’000
Rabbit Cash Co., Ltd. (1)
Total
(1)

18.00

144,000
144,000

As at February 28, 2023
Ownership
Fair Value%
Baht ’000
18.00

144,000
144,000

1,440,000 shares of Baht 100 each, fully paid

On March 29, 2021, the Company has entered into a Joint Venture Agreement with BSS
Holdings Company Limited (“BSS Holdings”) and Humanica Public Company Limited(“HUMAN”) to incorporate a Joint Venture Company under the name of “Rabbit CashCompany Limited”, whereas BSS Holdings, the Company and HUMAN holds 77%, 18%
and 5%, respectively, of the shares. The initial registered capital is Baht 800 million.
The fair values of investment in equity securities designated at fair value through othercomprehensive income are categorized into level 3.

- 16 -

11.

SELLER LOAN IN SPECIAL PURPOSE VEHICLE FOR SECURITIZATION

Seller loan in Special Purpose Vehicle for securitization as at May 31, 2023 and February 28,
2023 are as follows:
SEPARATE
FINANCIAL STATEMENTS“Unaudited”
As at
May 31,
2023
Baht ’000

As at
February 28,
2023
Baht ’000

283,563283,563

287,621287,621

Seller loan in Special Purpose Vehicle for securitization (see Note 25.2.1)
ATS Rabbit Special Purpose Vehicle Company Limited (ATS Rabbit)
Total Seller loan in Special Purpose Vehicle for securitization

Subsequent to the sale of the rights in initial loans receivable under securitization project, theCompany received partial payments from ATS Rabbit with Seller Loan Account under
securitization project for sales of the rights in loans receivable to ATS Rabbit during the sales
period of the rights in additional receivables or repurchase period of the rights in loans
receivable. Such Seller Loan Account will decrease from cash repayment when the outstanding
amount reaches or exceeds determined level or the duration after the closing date reaches orexceed the determined level, or every 3-month period after the payment date as agreed in theagreement, whichever is earlier.
12.

SUBORDINATED LENDINGS AND SUBORDINATED BORROWINGS

12.1 Subordinated lendings to Special Purpose Vehicle as at May 31, 2023 and February 28,
2023 are as follows:
SEPARATE
FINANCIAL STATEMENTS

Subordinated lendings (see Note 25.2.1)
ATS Rabbit Special Purpose Vehicle Company Limited(ATS Rabbit)
Total subordinated lendings“Unaudited”
As at
May 31,
2023
Baht ’000

As at
February 28,
2023
Baht ’000

84,074
84,074

84,074
84,074On October 22, 2015, the Company entered into the subordinated term loan
agreement with ATS Rabbit amounting to 5% of transferred rights in initialreceivables (see Note 5.5) and originated transaction cost, and of Future Receivables
and Additional Receivables, which are settled by Seller Loan Account and backed
for each issuance of debentures of ATS Rabbit, for the purposes of partial payment
from ATS Rabbit for the sales of rights in loans receivable.
The term loan is due within the year 2025 and the interest is payable on a monthly
basis at the rate of 12% per annum.

- 17 -

12.2 Subordinated borrowings of Special Purpose Vehicle as at May 31, 2023 and February 28,
2023 are as follows:
CONSOLIDATEDFINANCIAL STATEMENTS“Unaudited”
As at
May 31,
2023
Baht ’000
Subordinated borrowings
ATS Rabbit Special Purpose Vehicle Company Limited(ATS Rabbit)
Total subordinated borrowings

As atFebruary 28,
2023
Baht ’000

84,074
84,074

84,074
84,074On October 22, 2015, ATS Rabbit, a subsidiary, entered into the subordinated term
borrowings agreement with BSS Holdings Co., Ltd. amounting to 5% of transferred
rights in initial receivables (see Note 5.5) and originated transaction cost, and of
Future Receivables and Additional Receivables, which are settled by Seller Loan
Account and backed for each issuance of debentures of ATS Rabbit, for the purposesof partial payment for the purchase of rights in loans receivable.
The term borrowings are due within the year 2025 and the interest is payable ona monthly basis at the rate of 12% per annum.
13.

DEFERRED TAX ASSETS

Deferred tax assets as at May 31, 2023 and February 28, 2023 are as follows:

Deferred tax assets
Allowance for expected credit losses
Cumulative loss from fair value measurement ofinvestments in equity securities
Allowance for impairment of investment and assets
Provisions for employee benefit
Deferred revenue from customer loyalty programs
Lease agreements
Derivatives
OthersDeferred tax liabilities
Lease agreements
OthersDeferred tax assets

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS“Unaudited”
As at
May 31,
2023
Baht ’000

As at
February 28,
2023
Baht ’000“Unaudited”
As at
May 31,
2023
Baht ’000

As at
February 28,
2023
Baht ’000

1,981,530

1,956,008

1,932,277

1,906,108

4,502
22,16890,16270,97418,965
310,852
42,641

4,502
21,30088,052
72,67818,016
147,856
42,075

7,866
19,96783,88770,974
17,344
310,852
17,3807,866
19,09981,866
72,67816,482
147,856
16,8932,541,794

2,350,487

2,460,547

2,268,848

569
8,928

518
9,047

-

-

9,497

9,565

2,532,297

2,340,922--

2,460,547

2,268,848

- 18 -The movements of deferred tax assets and liabilities during the period/year are as follows:
CONSOLIDATED FINANCIAL STATEMENTS“Unaudited”
Items as
Items asrecognized inrecognizedprofit or loss
in othercomprehensive
incomeBaht ’000
Baht ’000

Beginningbalance
as atMarch 1,
2023
Baht ’000
Deferred tax assets
Allowance for expected credit losses
Cumulative loss from fair value measurement ofinvestments in equity securities
Allowance for impairment of investment and assets
Provisions for employee benefit
Deferred revenue from customer loyalty programs
Lease agreements
Derivatives
OthersDeferred tax liabilities
Lease agreements
OthersDeferred tax assets

1,956,008

25,522-Endingbalance
as at
May 31,
2023
Baht ’000-

1,981,530-

4,502
22,16890,16270,97418,965
310,852
42,641

4,502
21,30088,052
72,67818,016
147,856
42,075868
2,110(1,704)949
141,075566

2,350,487

169,386

518
9,047

51
(119)

-

9,565

(68)

-

2,340,922

169,454

21,921
21,921

2,541,794
569
8,928
9,497

21,921

2,532,297

CONSOLIDATED FINANCIAL STATEMENTS

Deferred tax assets
Allowance for expected credit losses
Cumulative loss from fair value measurement ofinvestments in equity securities
Allowance for impairment of investment and assets
Provisions for employee benefit
Deferred revenue from customer loyalty programs
Lease agreements
Derivatives
OthersDeferred tax liabilities
Lease agreements
OthersDeferred tax assets

Beginningbalance
as atMarch 1,
2022
Baht ’000

Items asrecognized in
profit or loss

Items asrecognizedin othercomprehensive
incomeBaht ’000

Endingbalance
as atFebruary 28,
2023
Baht ’000

2,076,888(120,880)-

1,956,008

12,721
12,357(25,220)
2,761(72,500)
18,876(14,553)(84,447)-

4,502
21,30088,052
72,67818,016
147,856
42,0752,621,372(171,885)(99,000)

2,350,487

310(3,420)208
12,467-(3,110)12,675-2,624,482(184,560)

4,502
8,579
90,24897,89815,255
304,80323,199Baht ’000(99,000)

518
9,047
9,565
2,340,922

- 19 -SEPARATE FINANCIAL STATEMENTS

Beginningbalance
as atMarch 1,
2023
Baht ’000
Deferred tax assets
Allowance for expected credit losses
Cumulative loss from fair value measurement ofinvestments in equity securities
Allowance for impairment of assets
Provisions for employee benefit
Deferred revenue from customer loyalty programs
Lease agreements
Derivatives
OthersDeferred tax assets“Unaudited”
Items as
Items asrecognized inrecognizedprofit or loss
in othercomprehensive
incomeBaht ’000
Baht ’000

1,906,108

26,169-Endingbalance
as at
May 31,
2023
Baht ’000-

1,932,277-

7,866
19,96783,88770,974
17,344
310,852
17,3807,866
19,09981,866
72,67816,482
147,856
16,893868
2,021(1,704)862
141,075487

2,268,848

169,778

21,9212,460,547

2,268,848

169,778

21,9212,460,547

21,921-

SEPARATE FINANCIAL STATEMENTS

Beginningbalance
as atMarch 1,
2022
Baht ’000
Deferred tax assets
Allowance for expected credit loss
Cumulative loss from fair value measurement ofinvestments in equity securities
Allowance for impairment of investment and assets
Provisions for employee benefit
Deferred revenue from customer loyalty programs
Lease agreements
Derivatives
OthersDeferred tax assets

1,994,594

Items asrecognized in
profit or loss

Baht ’000

Items asrecognizedin othercomprehensive
incomeBaht ’000

Endingbalance
as atFebruary 28,
2023
Baht ’000(88,486)-

12,29911,354(25,220)
2,602(72,500)
1,587(13,314)(84,447)-

7,866
19,09981,866
72,67816,482
147,856
16,8932,524,973(158,364)(97,761)2,268,848

2,524,973(158,364)(97,761)2,268,848

7,866
6,800
83,82697,89813,880304,803
15,306

1,906,108

- 20 -

14.

SHORT-TERM BORROWINGS FROM FINANCIAL INSTITUTIONS

Short-term borrowings from financial institutions as at May 31, 2023 and February 28, 2023
consist of the following:
CONSOLIDATED FINANCIAL STATEMENTS

Short-term borrowings in THB currency
Short-term borrowings in USD currency
Short-term borrowings in LAK currency
Short-term borrowings in MMK currency
Total“Unaudited”
As at May 31, 2023
Interest rate
p.a. (%)
Baht ’000

As at February 28, 2023
Interest rate
p.a. (%)
Baht ’000

1.94 - 2.00
5.65 - 8.00
6.50 - 6.62
10.00 - 13.00

1.69 - 1.76
5.49 - 6.70
6.62
10.00 - 13.00

3,280,000
660,826
311,182
134,4384,386,446

3,440,000
627,261
282,076
136,087
4,485,424

SEPARATE FINANCIAL STATEMENTS

Short-term borrowings in THB currency
Total“Unaudited”
As at May 31, 2023
Interest rate
p.a. (%)
Baht ’000

As at February 28, 2023
Interest rate
p.a. (%)
Baht ’000

1.94 - 2.00

1.69 - 1.76

3,280,000
3,280,000

3,440,000
3,440,000

Short-term borrowings in THB and foreign currencies from financial institutions areborrowings from various financial institutions in the form of promissory notes and are
unsecured.
15.

LONG-TERM BORROWINGSAs at May 31, 2023 and February 28, 2023, the Company entered into various long-termborrowings agreements in THB and foreign currencies as follows:

Due within
the year
Borrowings in JPY currency
Borrowings in USD currency
Borrowings in THB currency
Less Borrowings issuance cost

2023 - 2027
2023 - 2027
2023 - 2026

Less Current portion of long-term borrowings
Total long-term borrowings

CONSOLIDATED FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Interest rate
Foreign currency
p.a. (%)
Million1.90 - 3.33
1.85 - 8.50
2.01 - 3.69

22,345.24
692.3020,500.00

Baht equivalent
Baht ’000
5,636,787
24,106,682
20,500,000(54,120)
50,189,349(13,041,716)
37,147,633

- 21 -

Due within
the year
Borrowings in JPY currency
Borrowings in USD currency
Borrowings in THB currency
Less Borrowings issuance cost

2023 - 2027
2023 - 2027
2023 - 2026

CONSOLIDATED FINANCIAL STATEMENTS
As at February 28, 2023
Interest rate
Foreign currency
p.a. (%)
Million1.90 - 3.33
1.85 - 8.50
2.01 - 3.69

23,145.24
723.1020,500.00

Less Current portion of long-term borrowings
Total long-term borrowings

Due within
the year
Borrowings in JPY currency
Borrowings in USD currency
Borrowings in THB currency
Less Borrowings issuance cost

2023 - 2027
2023 - 2027
2023 - 2026

SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Interest rate
Foreign currency
p.a. (%)
Million1.90 - 3.33
1.85 - 3.49
2.01 - 3.69

22,345.24
611.1020,500.00

Less Current portion of long-term borrowings
Total long-term borrowings

Due within
the year
Borrowings in JPY currency
Borrowings in USD currency
Borrowings in THB currency
Less Borrowings issuance cost

2023 - 2027
2023 - 2027
2023 - 2026

SEPARATE FINANCIAL STATEMENTS
As at February 28, 2023
Interest rate
Foreign currency
p.a. (%)
Million1.90 - 3.33
1.85 - 3.49
2.01 - 3.69

Less Current portion of long-term borrowings
Total long-term borrowings

23,145.24
641.1020,500.00

Baht equivalent
Baht ’000
6,053,822
25,488,914
20,500,000(53,251)
51,989,485(12,836,551)
39,152,934

Baht equivalent
Baht ’000
5,636,787
21,324,518
20,500,000(54,120)
47,407,185(11,499,876)
35,907,309

Baht equivalent
Baht ’000
6,053,822
22,640,767
20,500,000(53,251)
49,141,338(11,273,543)
37,867,795

As at May 31, 2023 and February 28, 2023, the Company can maintain financial ratios andother requirements according to the conditions as specified in the agreement.
16.

LONG-TERM BORROWINGS UNDER SECURITIZATION PROJECT

As at May 31, 2023 and February 28, 2023, the Company recognized the cash received andthe settlement by the Seller Loan Account of ATS Rabbit for the transferred rights in loans
receivable under securitization project (see Note 5.5) as long-term borrowings under
securitization project in the separate financial statements in the amount of Baht 1,224.14
million and Baht 1,260.99 million, respectively.

- 22 -

17.

LONG-TERM DEBENTURES

Long-term debentures represent unsubordinated and unsecured debentures as at May 31, 2023
and February 28, 2023, as follows:“Unaudited”
Issue date

Maturity

No of

Currency Par value

date

units

per unit

AmountInterest rate

Term of

As at

As at

p.a. (%)

interest

May 31,February 28,

payment

2023

2023

Baht ’000

Baht ’000

Company
15/11/2019

15/11/2024 1,000,000

THB

1,000

1,000,000,000

2.57

Semi-annual

1,000,000

1,000,000

29/12/2021

29/12/2026

70

JPY

100,000,000

7,000,000,000

0.65

Semi-annual

1,765,813

1,830,906

29/11/2022

28/11/2025

100

JPY

100,000,000

10,000,000,000

0.69

Semi-annual

2,522,590

2,615,580

24/02/2023

24/02/2025 1,000,000

THB

1,000

1,000,000,000

2.99

Semi-annual

1,000,000

1,000,000

24/02/2023

24/02/2026 1,700,000

THB

1,000

1,700,000,000

3.18

Semi-annual

1,700,000

1,700,000

7,988,403

8,146,486

Less Debentures issuance cost
Total long-term debentures in the separate financial statements(39,659)(39,426)

7,948,744

8,107,060

1,473,082

1,473,082

9,421,826

9,580,142

ATS Rabbit Special Purpose Vehicle Company Limited
29/09/2018

28/10/2025 1,473,082

THB

1,000

1,473,082,000

3.29Monthly

Total long-term debentures in the consolidated financial statements

As at May 31, 2023 and February 28, 2023, the Company can maintain financial ratios andother requirements according to the conditions as specified in the agreement.
18.

DERIVATIVE FINANCIAL INSTRUMENTS

The fair values and notional amounts of derivative instruments as at May 31, 2023 andFebruary 28, 2023 are as follows:
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Fair value
Notional
AssetsLiabilities
amount
Baht ’000
Baht ’000
Baht ’000
Derivatives designated as
cash flow hedges
Cross currency andinterest rate swaps
Interest rate swaps
Less Current portion ofderivative assets /liabilities
Total derivative assets /liabilities

As at February 28, 2023
Fair value
Notional
AssetsLiabilities
amount
Baht ’000
Baht ’000
Baht ’000

1,247,617
11,103
1,258,720

1,733,598
46,9191,780,517

31,249,708
5,000,000
36,249,708

1,701,619
30,466
1,732,085

1,380,412
58,491
1,438,903

33,141,075
5,000,000
38,141,075(844,449)(688,207)(11,500,112)(1,047,431)(562,743)(10,473,815)

414,271

1,092,310

24,749,596

684,654876,160

27,667,260

- 23 -

19.

PROVISIONS FOR EMPLOYEE BENEFITThe Company operates post-employment benefit plans under the Labor Protection Act, which
are considered as unfunded defined benefit plans.
For the three-month periods ended May 31, 2023 and 2022, amounts recognized in thestatements of profit or loss in respect of the post-employment benefit plans are as follows:
CONSOLIDATED FINANCIAL
STATEMENTS

2023
Baht ’000
Past service cost (reversal)- For employees transferred fromsubsidiaries
Current service cost
Interest cost
(Gain) loss on settlement
Total

2022
Baht ’000(1,653)
14,8593,145(188)
16,163

26,2772,968
6,249
35,494

SEPARATE FINANCIAL
STATEMENTS

2023
Baht ’000

2022
Baht ’000(1,653)
13,1602,881(188)
14,20024,232
2,724
26,956

Movements in the present value of the provisions for post-employment benefit for
the three-month periods ended May 31, 2023 and 2022 are as follows:

Beginning balance
Past service cost (reversal)- For employees transferred fromsubsidiaries
Current service cost
Interest cost
(Gain) loss on settlement
Benefits paid
Ending balance

CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE
FINANCIAL STATEMENTS

2023
Baht ’000

2023
Baht ’000

2022
Baht ’000

2022
Baht ’000

444,377

463,335

405,630

419,132(1,653)
14,859
3,145
(188)
(560)
459,980

26,277
2,968
6,249(20,907)477,922(1,653)
13,160
2,881
(188)
(397)
419,433

24,232
2,724(11,841)434,247

The significant actuarial assumptions used to calculate the provisions under the defined
benefit plans as at May 31, 2023 and February 28, 2023 are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

Financial assumptions
Discount rate
Expected rate of salary increase
Demographic assumptions
Turnover rate
Monthly staff
Daily & Temporary staff“Unaudited”
As at May 31, 2023
% per annum

As at February 28, 2023
% per annum

0.84 - 3.15
5.0

0.84 - 3.15
5.0

0.0 - 27.0
Subject to range of age of employees
0.0 - 54.0
Subject to range of age of employees

0.0 - 27.0
Subject to range of age of employees
0.0 - 54.0
Subject to range of age of employees

- 24 -SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
% per annum

As at February 28, 2023
% per annum

2.85
5.0

2.85
5.0

0.0 - 21.0
Subject to range of age of employees
0.0 - 54.0
Subject to range of age of employees

0.0 - 21.0
Subject to range of age of employees
0.0 - 54.0
Subject to range of age of employees

Financial assumptions
Discount rate
Expected rate of salary increase
Demographic assumptions
Turnover rate
Monthly staff
Daily staff

20.

EMPLOYEE JOINT INVESTMENT PROGRAM

On August 9, 2022, the Company’s Board of Directors’ meeting had the resolution toapprove the Employee Joint Investment Program (“EJIP”), which has started on September 1,
2022. The details of the program are as follows:
EJIP Period

Program period: 5 years (September 1, 2022 to August 31, 2027)
Program contribution period: 3 years (September 1, 2022 to August 31, 2025)

Eligible employees under EJIP

Permanent employees of the Company at Assistant Manager level or higher
and Executive Director level or higher with at least 3 years of service, on a
voluntary basis

EJIP Arrangement

Money paid by employees to participate in the project:
3 - 5 percent of salary
Money paid by executives to participate in the project:
3 - 9 percent of salaryContributions made by the Company to join the program: Equivalent amount
paid by employees or executives into the program, with 3% additional
contribution of the base salary for Talent Employee according to the terms andconditions set by the Company

EJIP Buying Schedule

Monthly

Conditions for holding the securities Sell of shares during year 1 - 3 is not allowed.
All accumulated shares in the first year of the Program are allowed to be soldafter the end of the third year of the Program
All accumulated shares in the second year of the Program are allowed to be
sold after the end of the fourth year of the Program
All accumulated shares in the third year of the Program are allowed to be soldafter the end of the fifth year of the Program
EJIP Manager

Phillip Securities (Thailand) Public Company Limited

- 25 -

Movement of the employee joint investment program for the three-month period ended
May 31, 2023 is as follows:
CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE FINANCIAL
STATEMENTS“Unaudited”
As at May 31, 2023
Surplus on share-based
payment transactions
Baht ’000“Unaudited”
As at May 31, 2023
Surplus on share-based
payment transactions
Baht ’000

9,265

9,265

6,846
(3,143)
12,9685,603(2,763)
12,105

Beginning balance
Change during the period- Employee joint investment program expense- Cash paid for employee joint investment program
Ending balance

The statements of comprehensive income for the three-month period ended May 31, 2023
is as follows:

Operating and administrative expenses
Directors and managements’ remuneration

21.

CONSOLIDATEDFINANCIAL STATEMENTS

SEPARATE FINANCIAL
STATEMENTS

2023
Baht ’000

2023
Baht ’000
3,664
3,182
6,846

3,021
2,582
5,603

SHAREHOLDERS’ EQUITY

Under the Securitization project, the subsidiary has to pay dividend to its shareholders
from all remaining amounts after deducting the required accumulated reserves andpayment of all fees and expenses. The subsidiary appropriates interim dividends after theapproval of Board of Directors’ meeting on a monthly basis at each Monthly Purchase
Date as an appropriation of net profit after corporate income tax of each month.
ATS Rabbit Special Purpose Vehicle Company Limited’s registered share capitalcomprises 2 groups of ordinary shares and 2 groups of preferred shares. Dividends fromthe profits of the subsidiary shall be allocated to the holders of preferred shares which are
non-controlling interests at the rate of 1% of the par value of each preferred share. The
remaining dividends shall be distributed to the holders of ordinary shares and anothergroup of preferred shares.

- 26 -

22.

REVENUES RELATING TO SECURITIZATION TRANSACTION

For the three-month periods ended May 31, 2023 and 2022, revenues relating tosecuritization transaction incurred from sales of rights in loans receivable to ATS RabbitSpecial Purpose Vehicle Company Limited are included in the presentation of Loan income
as follows:
SEPARATE FINANCIAL STATEMENTS

2023
Baht ’000
Loan income (see Note 25.2.2)
Interest income from subordinated lendings
Revenue from seller loan in Special Purpose Vehicle
Dividend from investment in Special Purpose Vehicle
Collection servicing income
Total

23.

2022
Baht ’000

2,543
8,590
1,359
17,00029,492

2,543
8,665
1,664
19,21632,088

DIRECTORS AND MANAGEMENTS’ REMUNERATION

Directors’ remuneration represents the benefits paid to the Company’s directors in accordancewith Section 90 of the Public Limited Companies Act. Managements’ remuneration representsmonetary remuneration as salaries and bonus paid to the Company’s management.
For the three-month periods ended May 31, 2023 and 2022, directors and managements’
remuneration are as follows:
CONSOLIDATED FINANCIAL
STATEMENTS

Short-term employee benefits
Directors’ remuneration
Managements’ remuneration
Post-employment benefits
Total

SEPARATE FINANCIAL
STATEMENTS

2023
Baht ’000

2022
Baht ’000

2023
Baht ’000

2022
Baht ’000

5,700
31,1681,438
38,306

11,28430,503
1,447
43,2344,000
22,783
1,210
27,9938,750
19,042
1,025
28,817For the three-month periods ended May 31, 2023 and 2022, directors’ remunerations
which were included in short-term employee benefits were approved by the Annual
General Meeting of shareholders of the Company held on June 20, 2023 and June 24, 2022,
respectively.
24.

CORPORATE INCOME TAXThe Company and its local subsidiaries used tax rate of 20% for corporate income tax
and deferred tax calculations for the three-month periods ended May 31, 2023 and 2022.
The foreign subsidiaries used tax rate of 20% - 25% for corporate income tax and deferred
tax calculations for the three-month period ended May 31, 2022. For the three-month period
ended May 31, 2023, the foreign subsidiaries used tax rate of 20% - 22% for corporate
income tax and deferred tax calculations.
Income tax expenses of the Company and its subsidiaries is calculated from profit before
tax, added back transactions which are non-deductible expenses and deducted exempted
income under the Revenue Code.

- 27 -For the three-month periods ended May 31, 2023 and 2022, income tax expenses consists of:
CONSOLIDATEDFINANCIAL STATEMENTS

2023
Baht ’000
Current tax expenses for the period
Deferred income tax expenses
Income tax expenses per statements of profit or loss

330,287(169,454)
160,833

SEPARATE FINANCIAL
STATEMENTS

2022
Baht ’000

2023
Baht ’000

2022
Baht ’000

174,340
116,549
290,889

301,862(169,778)
132,084

137,009
122,489
259,498

Reconciliations of effective tax rates for the three-month periods ended May 31, 2023 and2022 are as follows:
SEPARATE
FINANCIAL STATEMENTS

2023

2022

2023

2022

Baht ’000

Baht ’000

Baht ’000

Baht ’000

1,449,645

801,861

Accounting profit before income tax

804,849

Permanent differences(144,375)(7,740)

518

4,058

Temporary differences

836,357(624,771)

848,888(612,448)

Income that is exempt from tax
Taxable profit
Normal income tax rate (%)

25.

CONSOLIDATEDFINANCIAL STATEMENTS-

1,453,698-(141,959)(160,264)

1,496,831

817,134

1,509,308

685,044

20.00 - 22.00

20.00 - 25.00

Income tax for the period currently payable

330,287

174,340

20.00
301,86220.00
137,009

Deferred tax from temporary differences(169,454)

116,549(169,778)

122,489

Income tax expenses per statements of profit or loss

160,833

290,889

132,084

259,498

Effective tax rate (%)

19.98

20.07

16.47

17.85

TRANSACTIONS WITH RELATED PARTIESThe consolidated and separate financial statements include certain transactions withthe subsidiaries and the related parties. The relationship may be by shareholding or thecompanies may have the same group of shareholders or directors. The consolidated andseparate financial statements reflect the effects of these transactions on the basis determinedby the Company, the subsidiaries and the related parties which are as follows:- 28 -

25.1

Investments in subsidiaries (see Note 8) as at May 31, 2023 and February 28, 2023
are as follows:
SEPARATE FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Related parties

Relationship Ownership

As at February 28, 2023

Paid-up

Cost

Ownership

capitalPaid-up

Cost

capital%Baht ’000

Baht ’000%

Baht ’000

Baht ’000

ACS Servicing (Thailand) Company Limited

Subsidiary

100.00175,349.1

175,349.1

100.00175,349.1

175,349.1

ACSI (Thailand) Co., Ltd.

Subsidiary

100.00149,224.3

149,224.3

100.00149,224.3

149,224.3

AEON Specialized Bank (Cambodia) Plc.

Subsidiary

50.00

643,720.4

323,580.0

50.00

643,720.4

323,580.0

AEON Microfinance (Myanmar) Company Limited

Subsidiary

100.00455,403.3

455,403.3

100.00455,403.3

455,403.3

AEON Leasing Service (Lao) Company Limited

Subsidiary

96.29

111,402.9

107,333.1

96.29

111,402.9

107,333.1

ATS Rabbit Special Purpose Vehicle Company Limited

Subsidiary

48.75

40.0

19.5

48.75

40.0

19.5

AEON Asset Management (Thailand) Company Limited

Subsidiary

98.00

24,499.7

24,499.7

98.00

24,499.7

Total

25.2

1,235,409.0

24,499.7
1,235,409.0

Business transactions with related parties
25.2.1

Balances with related parties as at May 31, 2023 and February 28, 2023
are as follows:

Related parties

Relationship

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS“Unaudited”“Unaudited”

As at

As at

As at

As at

May 31,February 28,

May 31,February 28,

2023

2023

2023

2023

Baht ’000

Baht ’000

Baht ’000

Baht ’000

-

-

-

-

-

Other receivables
ACSI (Thailand) Co., Ltd.

SubsidiaryACS Servicing (Thailand) Company

Subsidiary

LimitedAEON Asset Management (Thailand)Company Limited

Major shareholder

AEON Credit Service Company

Common ultimate

ACS Capital Corporation Limited

holding company

4,412

2,224

3,072

534

540

534

421

3,398

805

2,042

2,971

-

-

Shareholder andone common director

ATS Rabbit Special Purpose Vehicle

8,943

Subsidiary

AEON Financial Service Co., Ltd.

Limited

28

113

156

Subsidiary--

48,601

51,621

AEON Specialized Bank (Cambodia) Plc.

Company Limited
Subsidiary

-

-

4,574

1,812

AEON Leasing Service (Lao) Co., Ltd.

Subsidiary

-

-

2,803

2,820

AEON Microfinance (Myanmar)

Subsidiary
-

-

7,846

7,807

Company Limited
ACS Trading Vietnam Co., Ltd.

Common ultimate
holding company

334

334

334

334

3,626

4,367

78,654

72,766

- 29 -

Related parties

Relationship

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS“Unaudited”“Unaudited”

As at

As at

As at

As at

May 31,February 28,

May 31,February 28,

2023

2023

2023

2023

Baht ’000

Baht ’000

Baht ’000

Baht ’000--

110,619

111,960--

283,563

287,621--84,074

84,074--

72,84675,134Long-term loan to a subsidiary(see Note 6)
AEON Specialized Bank (Cambodia) Plc.

Subsidiary

Seller loan in Special Purpose Vehicle
for securitization (see Note 11)
ATS Rabbit Special Purpose Vehicle

Subsidiary

Company Limited

Subordinated lendings (see Note 12.1)
ATS Rabbit Special Purpose Vehicle

Subsidiary

Company Limited

Other payables
ACS Servicing (Thailand) Company

Subsidiary

LimitedAEON (Thailand) Co., Ltd.

Common ultimate
holding company

890

960

890

960

AEON Financial Service Co., Ltd.

Major shareholder

31,91860,797

23,23848,871

AEON Credit Service Company

Common ultimate
2,685

2,560

227

866

711

936

589

884

-

-

33,92733,99936,20465,253

131,717

160,714--1,224,144

1,260,991--

80,41081,131

5,197

5,058

5,197

1,863

-

5,197

87,331

86,328Limitedholding company

AEON Bank Ltd.

Common ultimate
holding company

ATS Rabbit Special Purpose Vehicle

Subsidiary

Company Limited

Long-term borrowings under
securitization project (see Note 16)
ATS Rabbit Special Purpose Vehicle

Subsidiary

Company Limited
Deferred revenue
ACS Servicing (Thailand) Company

Subsidiary

LimitedACS Capital Corporation Limited

Shareholder andone common director

AEON Asset Management (Thailand)Company Limited

5,058

Subsidiary
-

5,058

- 30 -

25.2.2

Transactions with related parties for the three-month periods ended May 31,
2023 and 2022 are as follows:

Related parties

Relationship

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

2023

2022

2023

2022

Baht ’000

Baht ’000

Baht ’000

Baht ’000--

29,49232,088---55,000--140,600

103,600--

140,600

158,600---

Revenue relating to securitizationtransaction (included in loan income)(see Note 22)
ATS Rabbit Special Purpose Vehicle

Subsidiary

Company Limited

Dividend income
ACSI (Thailand) Company Limited

SubsidiaryACS Servicing (Thailand) Company

Subsidiary

LimitedCollection service income
ACS Capital Corporation Limited

Shareholder andone common director

234

Other income
ACS Capital Corporation Limited

Shareholder andone common director

ACSI (Thailand) Company Limited

SubsidiaryACS Servicing (Thailand) Company

Subsidiary

LimitedAEON Asset Management (Thailand)

446

5,400

-

742

-

6,007

6

157

-

-

8,518

6,300

Subsidiary
-

-

526

AEON Specialized Bank (Cambodia) Plc.

Company Limited
Subsidiary

-

-

2,753

AEON Leasing Service (Lao) Co., Ltd.

Subsidiary

-

-

30

-

AEON Microfinance Myanmar Company

Subsidiary
-

-

39

-

LimitedACS Trading Vietnam Co., Ltd.

2,935

Common ultimate
holding company

501

-

501

-

1,243

6,007

12,81914,792--

133,444

118,836

-

-

779

862

-

-

134,223

119,698

Operating and administrative expenses
Collection service fee
ACS Servicing (Thailand) Company

Subsidiary

LimitedATS Rabbit Special Purpose Vehicle
Company Limited

Subsidiary- 31 -

Related parties

Relationship

CONSOLIDATEDSEPARATE

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

2023

2022

2023

2022

Baht ’000

Baht ’000

Baht ’000

Baht ’000

38,01747,53425,45031,277

6,037

5,888

952

1,451

2,590

803

2,590

802

997

4,048

997

1,527

OthersAEON Financial Service Co., Ltd.

Major shareholder

AEON Credit Service Company

Common ultimate

Limitedholding company

AEON (Thailand) Company Limited

Common ultimate

AEON Bank Ltd.

Common ultimate

holding company
holding company
ATS Rabbit Special Purpose Vehicle

Subsidiary

Company Limited
ACS Servicing (Thailand) Company
LimitedACS Credit Management Co., Ltd.

--

10,676

9,646

-

-

-

691

Subsidiary
Common ultimate
holding company

-

-

-

47,882

241

58,273

40,66545,394--70,992

77,297

Finance costs
ATS Rabbit Special Purpose Vehicle

Subsidiary

Company Limited
AEON Bank Ltd.

Common ultimate
holding company

2,760

1,304

-

-

AEON Financial Service Co., Ltd.

Major shareholder

2,827

4,097

-

-

5,587

5,401

70,992

77,297-

Other income for the three-month periods ended May 31, 2023 and 2022
includes computer fee and Finance and Accounting operation services fee
charged to ACS Capital Corporation Limited, ACSI (Thailand) Co., Ltd.,ACS Servicing (Thailand) Company Limited and AEON Asset Management(Thailand) Company Limited as stated in the agreement which the service
fees are based on a cost plus basis.

-

Revenues relating to securitization transactions are determined by theCompany and subsidiaries in accordance with securitization projects (seeNote 5.5).

-

Collection service fee paid to ACS Servicing (Thailand) Co., Ltd. is basedon general market price and in the normal course of business.

-

Management assistant fee is paid to AEON Financial Service Co., Ltd.
as stated in the agreement.

-

Pricing policy for other operating and administrative expenses are
determined by the Company and related parties based on the cost-plus basis.

- 32 -

26.

SEGMENT INFORMATIONThe Group presents segment information in respect of the business segments based on
the management and internal reporting structure. The business segments of the Groupconsist of:
Retail finance services
Other business

Consist of credit card, hire-purchase and personal loans and others
Consist of debt collection service and insurance brokerage services

The Group does not have revenues from transactions with a single external customer
at 10% or more of total revenues.
Transactions between segments are recorded on the same basis as the transaction conductedwith the third-party. Transactions between segments are eliminated on consolidation.
The segment information of the Group was classified by business segment as follows:
26.1

Operating results, classified by business for the three-month periods ended
May 31, 2023 and 2022, are as follows:
CONSOLIDATED FINANCIAL STATEMENTS

2023
Retail finance services

Other businesses

Domestic

Foreign

Domestic

Baht ’000

Baht ’000

Baht ’000

Elimination

Total

Baht ’000

Baht ’000

Revenues
Revenue from external customers
Inter - segment revenues

4,896,618

321,334

241,239-

152,396(1,341)

141,453(292,508)

5,459,191

5,049,014

319,993382,692(292,508)

5,459,191(150,949)

1,990,467-

Expenses
Operating and administrative expenses

1,821,325

174,015

146,076

Directors and managements’ remuneration

27,993

5,787

4,526

Loss on impairment of assets

4,341

-

-

-

38,306-

4,341

Loss (gain) on sale and write-off ofleasehold improvements and equipment
and intangible assets other than goodwill
Total expenses
Finance costs

509

(137)

(16)

1,854,168

179,665

150,586-356(150,949)(2,300)2,033,470

484,01344,751

508

Expected credit losses

2,076,591

17,236

73

Profit before income tax

634,242

78,341

231,525(139,259)

804,849

Income tax expenses

132,763

15,223

12,847-

160,833

Profit for the period

501,479

63,118

218,678(139,259)

644,016-

526,972
2,093,900

- 33 -CONSOLIDATED FINANCIAL STATEMENTS

2022
Retail finance services

Other businesses

Domestic

Foreign

Domestic

Baht ’000

Baht ’000

Baht ’000

Elimination

Total

Baht ’000

Baht ’000

Revenues
Revenue from external customers
Inter - segment revenues

4,917,878

316,551

250,220-

167,924

11,952

124,683(304,559)

5,484,649

5,085,802

328,503374,903(304,559)

5,484,649(137,325)

1,990,104-

Expenses
Operating and administrative expenses

1,818,971

161,765

146,693

Directors and managements’ remuneration

28,817

7,862

6,555

Loss on impairment of assets

1,426

-

-

-

43,234-

1,426

Loss (gain) on sale and write-off ofleasehold improvements and equipment
and intangible assets other than goodwill
Total expenses
Finance costs

26.2

106

19

(66)

1,849,320

169,646

153,182

391,564

47,758193

Expected credit losses (reversal)

1,568,076(4,208)(391)

Profit before income tax

1,276,842

115,307

221,919

Income tax expenses

260,330

21,484

9,075

Profit for the period

1,016,512

93,823

212,844-59(137,325)(2,811)2,034,823
436,704-

1,563,477(164,423)

1,449,645(164,423)

290,889
1,158,756

Financial positions classified by business are as follows:
CONSOLIDATED FINANCIAL STATEMENTS“Unaudited”
As at May 31, 2023
Retail finance services

Trade and other receivables

Other businesses

Domestic

Foreign

Domestic

Baht ’000

Baht ’000

Baht ’000

79,318,831

4,700,156

1,176,992

161,132

8,937,874

579,933

Total assets

89,433,697

5,441,221

Total liabilities

66,226,591

4,280,164

310,272

Elimination

Total

Baht ’000

Baht ’000(181,665)

84,147,594

62,866(6,942)

1,394,048

603,582(1,346,173)

8,775,216

976,720(1,534,780)

94,316,858

188,282(270,436)

70,424,601

Leasehold improvements and equipment andintangible assets other than goodwill
Other assets

CONSOLIDATED FINANCIAL STATEMENTS

As at February 28, 2023
Retail finance services

Trade and other receivables

Other businesses

Domestic

Foreign

Domestic

Baht ’000

Baht ’000

Baht ’000

79,698,518

4,577,732

1,230,470

153,6039,348,397

694,129

Total assets

90,277,385

5,425,464

Total liabilities

67,655,525

4,313,027

299,428

Elimination

Total

Baht ’000

Baht ’000(171,512)

84,404,166

69,420(6,942)

1,446,551

664,385(1,350,942)

9,355,969

1,033,233(1,529,396)

95,206,686

153,765(263,711)

71,858,606

Leasehold improvements and equipment andintangible assets other than goodwill
Other assets

- 34 -

27. CREDIT FACILITIES AND LETTER OF GUARANTEE

28.

27.1

As at May 31, 2023 and February 28, 2023, the Company has unused committed andunsecured revolving credit facility agreements with various financial institutions
totaling Baht 3,000 million.

27.2

As at May 31, 2023 and February 28, 2023, the Company has unused overdraft
facilities with various banks totaling Baht 3,090 million. Such overdraft facilities are
unsecured.

27.3

As at May 31, 2023 and February 28, 2023, the Company has a bank’s letter ofguarantee issued to suppliers for guarantee payment of Baht 0.50 million. Such letterof guarantee is unsecured.

27.4

As at May 31, 2023 and February 28, 2023, a subsidiary has letters of guarantee
issued by banks in the amounts of Baht 2.13 million and Baht 1.78 million,
respectively.

SALE OF WRITTEN-OFF RECEIVABLES

28.1

On June 28, 2018, the Company sold written-off receivables under loan agreements andcredit card agreements to ACS Servicing (Thailand) Company Limited (the “buyer”),
a subsidiary, with the purchase price of Baht 31.52 million. On the same date,
the Company entered into the “Asset Sale and Purchase Agreement” with the buyer.
The agreement sets out the conditions and terms in respect of the sales, assignment andconveyance of the Company’s rights, title, claim, obligation, liability and interest in thewritten-off receivables under loan agreements and credit card agreements. On June 28,
2018, which is the closing date as specified in the agreement, the Company received thepayment in full from the buyer. However, the Group has retained substantially all of therisks and rewards of the assets transferred to the buyer which is the subsidiary.
Consequently, the Company recorded cash received from the buyer as deferred revenue
which will be recognized as revenue when the buyer can collect from debtors. The
Company has already recognized revenue of Baht 0.13 million and Baht 0.12 million as
bad debt recovery in the consolidated and separate statements of profit or loss for thethree-month periods ended May 31, 2023 and 2022, respectively, and recorded
outstanding deferred revenue of Baht 21.19 million as other current liabilities in theseparate statements of financial position as at May 31, 2023 (as at February 28, 2023:
Baht 21.32 million).
Under the Asset Sale and Purchase Agreement, if the buyer wished to sell ortransfer loans receivable that were intended to be a portfolio sale to a third-party,
the Company was entitled to a right to first negotiate with the buyer with regard toa purchase of the portfolio before any third-party. If the negotiation was notconcluded within three months or the Company decided not to make a purchase,the buyer might sell such loans receivable to a third-party.

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28.2

On October 28, 2019, the Company sold written-off receivables under loan
agreements and credit card agreements by a bidding process to ACS Servicing(Thailand) Company Limited (the “buyer”), a subsidiary, with the purchase price of
Baht 59.11 million. On the same date, the Company entered into the “Asset Sale andPurchase Agreement” with the buyer. The agreement sets out the conditions and terms
in respect of the sales, assignment and conveyance of the Company’s rights, title,
claim, obligation, liability and interest in the written-off receivables under loan
agreements and credit card agreements. On October 28, 2019, which is the closing
date as specified in the agreement, the Company received the payment in full fromthe buyer. However, the Group has retained substantially all of the risks and rewardsof the assets transferred to the buyer which is the subsidiary. Consequently, theCompany recorded cash received from the buyer as deferred revenue which will berecognized as revenue when the buyer can collect from debtors. The Company has
already recognized revenue of Baht 0.27 million and Baht 0.18 million as bad debt
recovery in the consolidated and separate statements of profit or loss for the three-month
periods ended May 31, 2023 and 2022, respectively, and recorded outstanding deferred
revenue of Baht 53.61 million as other current liabilities in the separate statements offinancial position as at May 31, 2023 (as at February 28, 2023 : Baht 53.88 million).
Under the Asset Sale and Purchase Agreement, if the buyer wished to sell ortransfer loans receivable that were intended to be a portfolio sale to a third-party,
the Company was entitled to a right to first negotiate with the buyer with regard toa purchase of the portfolio before any third-party. If the negotiation was notconcluded within three months or the Company decided not to make a purchase,the buyer might sell such loans receivable to a third-party.

28.3

On March 4, 2022, the Company sold written-off receivables under loan
agreements and credit card agreements by a bidding process to an unrelated
local company (the “buyer”) with the purchase price of Baht 104.98 million.
On the same date, the Company entered into the “Asset Sale and Purchase Agreement”
with the buyer. The agreement set out the conditions and terms in respect of thesales, assignment and conveyance of the Company’s rights, title, claim, obligation,
liability and interest in the written-off receivables under loan agreements andcredit card agreements. On March 4, 2022, which is the closing date as specified in
the agreement, the Company received the payment in full from the buyer.
The Company has already recognized gain on sale of written-off receivables
totaling Baht 104.98 million in the consolidated and separate statements of profit
or loss for the year ended February 28, 2023.
Under the Asset Sale and Purchase Agreement, the buyer was entitled to claim
damages from the Company from sales of loans receivable within a specific periodin events the buyer did not have lawful title over loans receivable or loan
agreements are not legal as specified in the agreement. However, the Company
believed that such damage was not significant, therefore, the Company had notrecorded such claim in the financial statements for the year ended February 28,2023.
In addition, under the Asset Sale and Purchase Agreement, if the buyer wishedto sell or transfer loan to a third-party, the buyer shall get written approval fromthe Company. In addition, a third-party shall comply all terms and conditions of
the agreement, by entering into the Accession Agreement in form determined by
the Company.

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28.4

On October 31, 2022, the Company sold written-off receivables under loan
agreements and credit card agreements by a bidding process to an unrelated
local company (the “buyer”) with the purchase price of Baht 110.40 million.
On the same date, the Company entered into the “Asset Sale and Purchase Agreement”
with the buyer. The agreement set out the conditions and terms in respect of thesales, assignment and conveyance of the Company’s rights, title, claim, obligation,
liability and interest in the written-off receivables under loan agreements and credit
card agreements. On November 29, 2022, which is the closing date as specified in
the agreement, the Company received the initial payment of Baht 11.04 million.
The buyer has agreed to pay the remaining amount of purchase price amounting to
Baht 99.36 million in 8 installments of Baht 12.42 million per each and last
installment will be on November 29, 2024. The Company has already recognizedgain on sale of written-off receivables totaling Baht 110.40 million in the
consolidated and separate statements of profit or loss for the year ended February 28,
2023, and recorded outstanding receivables of Baht 74.51 million as otherreceivables in the consolidated and separate statements of financial positions as at
May 31, 2023 (as at February 28, 2023 : Baht 86.93 million).
Under the Asset Sale and Purchase Agreement, the buyer was entitled to claim
damages from the Company from sales of loans receivable within a specific periodin events the buyer did not have lawful title over loans receivable or loan
agreements are not legal as specified in the agreement. However, the Company
believed that such damage was not significant, therefore, the Company had notrecorded such claim in the financial statements for the three-month period ended
May 31, 2023.
In addition, under the Asset Sale and Purchase Agreement, if the buyer wishedto sell or transfer loan to a third-party, the buyer shall get written approval fromthe Company. In addition, a third-party shall comply all terms and conditions of
the agreement, by entering into the Accession Agreement in form determined by
the Company.

28.5

On November 29, 2022, the Company sold written-off receivables under loan
agreements and credit card agreements by a bidding process to an unrelated
local company (the “buyer”) with the purchase price of Baht 108.98 million.
On the same date, the Company entered into the “Asset Sale and Purchase Agreement”
with the buyer. The agreement set out the conditions and terms in respect of thesales, assignment and conveyance of the Company’s rights, title, claim, obligation,
liability and interest in the written-off receivables under loan agreements andcredit card agreements. On November 29, 2022, which is the closing date as
specified in the agreement, the Company received the initial payment of Baht
10.90 million. The buyer has agreed to pay the remaining amount of purchaseprice amounting to Baht 98.08 million in 8 installments of Baht 12.26 million pereach and last installment will be on November 29, 2024. The Company has alreadyrecognized gain on sale of written-off receivables totaling Baht 108.98 million in
the consolidated and separate statements of profit or loss for the year ended
February 28, 2023, and recorded outstanding receivables of Baht 73.57 million asother receivables in the consolidated and separate statements of financial positionsas at May 31, 2023 (as at February 28, 2023 : Baht 85.83 million).

- 37 -

Under the Asset Sale and Purchase Agreement, the buyer was entitled to claim
damages from the Company from sales of loans receivable within a specific periodin events the buyer did not have lawful title over loans receivable or loan
agreements are not legal as specified in the agreement. However, the Company
believed that such damage was not significant, therefore, the Company had notrecorded such claim in the financial statements for the three-month period ended
May 31, 2023.
In addition, under the Asset Sale and Purchase Agreement, if the buyer wishedto sell or transfer loan to a third-party, the buyer shall get written approval fromthe Company. In addition, a third-party shall comply all terms and conditions of
the agreement, by entering into the Accession Agreement in form determined by
the Company.
29.

EVENT AFTER THE REPORTING PERIODOn June 20, 2023, the Annual General Meeting of Shareholders had the resolutions toapprove the declaration of final dividends for the year ended February 28, 2023 at the rate of
Baht 2.95 per share, totaling Baht 737.50 million, which will be paid to all shareholders on
July 17, 2023 in addition to the interim dividends which had been paid to all shareholders at
the rate of Baht 2.55 per share, totaling Baht 637.50 million, on November 2, 2022.
30.

APPROVAL OF THE INTERIM FINANCIAL STATEMENTS

These interim financial statements were approved for issue by the Company’s authorized
director on July 5, 2023.