Consolidated Business Scale and Results
 Steady expansion on a consolidated basis to 37.22 million cardholders and ¥3,887.9 billion in finance receivables.
 Ordinary income increased 9% YoY to ¥359.6 billion, with double-digit YoY growth in ordinary profit and net income.

FY 2015
FY 2014 Results
Number of cardholders,consolidated

35.67 million

Domestic

1H Change

2H Change+1.04 million+0.51 million

FY 2015 Results

37.22 million+1.55 million

YoY

24.64 million+0.61 million+0.63 million

25.88 million+1.24 million

AEON Bank accounts

4.32 million+0.30 million+0.31 million

4.93 million+0.61 million

Finance receivables[including securitizedreceivables]¥3,242.4 billion+¥259.7 billion+¥385.8 billion¥3,887.9 billion+¥644.5 billion

FY 2015
1H Results

YoY

2H Results

YoY

FY 2015 Results

YoY

Difference fromforecast

Ordinary income¥173.8 billion+15%¥185.8 billion+5%¥359.6 billion+9%-¥20.3 billion

Ordinary
expenses¥147.9 billion+12%¥152.3 billion+6%¥300.2 billion+9%-¥18.7 billion

Ordinary profit¥25.9 billion+33%¥33.4 billion-1%¥59.3 billion+12%-¥1.6 billion

Net income
attributable to ownersof the parent¥14.1 billion+28%¥21.6 billion+11%¥35.7 billion+18%+¥2.7 billion

¥28

+¥3

¥38 (Scheduled)+¥3¥66 (Scheduled)+¥6－

Results for Fiscal Year 2015

2

Dividends

AEON Financial Service Co., Ltd.

Results for Fiscal Year 2015

1

Results by Area

AEON Financial Service Co., Ltd.

Results by Segment

 In Japan, growth in card transactions was weak due to low gasoline prices and refund of interest received was ¥800 million
higher than planned.

Credit Overseas, ordinary profit improved because we controlled bad debt allowance, which offset a sudden devaluation of local
currencies in the second half.

Ordinary income

FY 2015
1H
YoY

Ordinary
incomeYoY

2H

Full Year
YoY

Ordinary expenses

YoY

Domestic¥111.9 billion+13%¥127.9 billion+6%¥239.8 billion

+9%

Share

64%

-1%

67%

+1%

66%

±0%

Overseas¥62.3 billion+18%¥60.7 billion+6%¥123.0 billion

+9%

Share

36%

+1%

33%

-1%

34%

±0%

Domestic¥14.5 billion+70%¥23.3 billion-6%¥37.9 billion

+14%

Share

56%

+12%

62%

-4%

60%

±0%

Overseas¥11.3 billion+4%¥12.6 billion+13%¥24.0 billion

+9%

Share

44%

-12%

38%

+4%

40%

±0%

Bad debt allowance
YoY

Results for Fiscal Year 2015

¥161.3 billion¥46.8 billion¥123.0 billion

+10%

+12%

+9%

¥124.4 billion¥45.6 billion¥99.0 billion

+9%

+10%

+10%

+5%

－

+9%

¥12.6 billion¥0.2 billion¥31.2 billion¥1.4 billion－¥45.6 billion

+5%

+20%

－

+15%

+43%

3

－

Fee

Adjustment¥49.6 billion -¥21.2 billion+9%¥45.5 billion -¥14.4 billion¥1.1 billion¥24.0 billion¥4.0 billion-¥6.8 billion+15%+¥1.2 billion

+9%

+118%

－

Loans and bills discounted¥415.8 billion ¥1,046.1 billion¥243.2 billion

Loan yield(YoY)

14.7% (+0.2)

Interest rate

(YoY)

0.5%(0.0)

Interest rate spread (YoY)

14.2% (+0.2)

AEON Financial Service Co., Ltd.

Total
¥359.6 billion－¥36.9 billion

YoY*Results before inter-segment eliminations

AEON Financial Service Co., Ltd.

Overseas

YoY

Ordinary profit

Ordinary
profitBanking+9%¥300.2 billion¥59.3 billion+12%¥24.4 billion -¥55.7 billion ¥1,673.9 billion

1.4% (-0.1) 25.3% (+0.5)

1.6% (-0.2)－

8.7% (-0.3)

0.1%(-0.1)

4.0% (0.0)

0.9% (0.0)－

0.7% (-0.1)

1.3% (0.0) 21.4% (+0.6)

0.7% (-0.2)－

7.9% (-0.3)

Results for Fiscal Year 20154

Consolidated Balance Sheets(Billions of yen)

Consolidated

Results

Change from startof fiscal year

444.8

-22.8

1,673.9+199.71,430.7

Consolidated

Results

Change from startof fiscal year

2,152.9+189.9Interest-bearing debt

760.6

-46.2

+208.8Domestic

383.8

-52.0

467.4

+50.9

Overseas

376.8

+5.8

243.2

-9.1

Allowance for loss on refund ofinterest received

4.2

-0.6

Accounts receivable installment

122.3

-15.8

Accounts payable – trade andother liabilities

313.4

+7.2

Customers’ liabilities for
acceptances and guarantees

173.4

-10.1

Acceptances and guarantees

173.4

-10.1

Allowance for doubtful
accounts

-49.4

-0.1

Total liabilities

3,404.6+140.1

Securities and other assets

480.3

+5.3

Net assets

340.8

+15.9

3,745.5+156.0Total liabilities and net assets

3,745.5+156.07.9%-0.3%*

Shareholders’ equity ratio[domestic standard]

7.4%

-0.7%

Cash and deposits

Loans and bills discounted

Domestic
Cash advances andconsumer loans

Overseas

Total assets

Interest rate spread

Deposits

FY 2015 in Review
1. Progress of Digitalization
2. Strengthening theBusiness Foundation*Change from previous fiscal year

AEON Financial Service Co., Ltd.

Results for Fiscal Year 2015

5

AEON Financial Service Co., Ltd.

Results for Fiscal Year 2015

6

1.1: In-store Branch Reforms

1.1: In-store Branch Reforms

 We opened digitalized branches in Japan and also in Malaysia and Cambodia.

 We opened digitalized branches in Japan and also in Malaysia and Cambodia

 The introduction of digital signage supported paperless operations and other benefits that improved operating
efficiency.

 The introduction of digital signage supported paperless operations and other benefits that improved operating
efficiency

Japan

Malaysia

Former branch

AEON Financial Service Co., Ltd.

Before renovation

New branch

Results for Fiscal Year 2015

7

AEON Financial Service Co., Ltd.

After renovation

Results for Fiscal Year 20158

1.1: In-store Branch Reforms

1.2: More Efficient Cardholder Sign-Up

 We opened digitalized branches in Japan and also in Malaysia and Cambodia.

 Cardholder sign-up using tablets has grown to 90% of in-store cardholder sign-ups.

 The introduction of digital signage supported paperless operations and other benefits that improved operating
efficiency.

 Improved functions have reduced card issuance time and the immediate issuance of cards has increased theactivity rate

Cambodia

Effect of Cardholder Sign-Up Using Tablets

Faster Credit Screening•

Shorter card issuance time•

Increased immediate issuance of cards

Higher activity rate andtotal transaction amount•

Immediate issuance cardholders
Average monthly card use has increased
by 20%

Before renovation

After renovation

AEON Financial Service Co., Ltd.

Results for Fiscal Year 2015

Lower Sign-Up and Issuance Costs

Cardholder sign-up using a tablet terminal•

9

AEON Financial Service Co., Ltd.

Lower personnel, promotion and mailingexpenses

Results for Fiscal Year 2015

1.3: Web-Based Initiatives (Credit Cards)

1.4: Web-Based Initiatives (Installment Sales Finance) 350,000 cards issued via website(18% of total), with 80% registered for Web-based statements.

 Web-based credit screening has simplified applications, reduced incomplete applications, and increased
credit screening speed.

 3.23 million cardholders use Web-based statements, up by 610,000 YoY, which has reduced annual
statement mailing costs by about ¥1 billion.

Promoting Registration for Web-Based Statements

Cards Issued Via Website
18%(Thousand)20%

 Addressing sales needs has resulted in strong transaction volume at existing stores and development of new
affiliated merchants.

14%

14%

Effect of Introducing Web-Based
Applications

Installment Sales Finance Transaction Volume(Billions of yen)

400

2,000
200

15%

■ Auto loans

200¥201.2 billion+27% YoY■ Others

Faster Credit screening•

Less time to obtain credit screening results•

Accommodates affiliated merchant sales
needs

•

Transaction volume up 34% YoY at affiliatedmerchants using Web-based credit
screening

+33%

1,500
150

10%

Increased Transaction Volume

YoY

1,000
100

*Comparison of 2H results after full-scale
introduction

5%

0

0%
2013

2014

2015

50500

Cardholders using Web-based statements
3.23 million x Monthly usage rate of 50% x
Statement mailing cost
 Reduced annual statement mailing costs byabout ¥1 billion.

Increase in Affiliated Merchants•

0FY 2014
2014年度(Fiscal years)

AEON Financial Service Co., Ltd.

10

Results for Fiscal Year 201511

AEON Financial Service Co., Ltd.

New auto loan affiliated merchants up 52%
YoY

FY 20152015年度Results for Fiscal Year 201512

1.5: Increased Transaction Volume in Japan

2.1: A More Efficient Balance Sheet Total transaction volume for card shopping, unsecured loans, installment sales finance and housing
loans exceeded ¥5 trillion.

 Increase balance sheet efficiency by reducing long-term debt in Japan and securitizing long-term receivables.
 Increase the proportion of ordinary deposits to reduce domestic funding costs.

 Increase in cardholders, promotion of free ATM tie-ups, enhancement of new affiliated merchantdevelopment and other initiatives increased transaction volume.

Card shopping

Unsecuredloans

FY 2015 Transaction Volume by Product and Finance Receivables(Billions of yen unless otherwise indicated)

Unsecured Loans(cash advances +small consumer
loans

Credit Card
Shopping

Installment sales
finance andcustomers’
liabilities for
acceptances andguarantees

Housing Loans andStudioCondominium
Loans

Total

4,104.7

406.9

High

Yield

Low

Duration

Short

DurationLong

3,428.9
Finance receivables

201.2

385.1

845.0

+7%

+5%

+27%

467.4

466.0 399.5

1,251.9

5,098.1

1,009.6
Amount securitized

YoY

Housing loans and studiocondominium loans

Leasesand others

Yield[Before securitization]

Transaction
volumeInstallment
sales
finance+42%

Funding for long-term receivables

2,419.3+10%
Finance receivables[After securitization]

Financereceivables[excluding
securitizedreceivables]

845.0

YoY

+71.1

467.4

466.0

+50.9

1,251.9+87.8

3,030.4+300.7+510.7For short-term
receivables

Deposits
Borrowings, etc.

Ordinary,etc. 716.6
Short-term

For long-term receivables
Fixed-term 1,437.0
Long-term

Bonds, etc.
(Billions of yen)

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201513

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201514

2.2: Initiatives to Reduce Bad Debt (Overseas) We continue to tighten credit and strengthen collection of debt, and quarterly bad debt allowance has decreased.
 We need to shift from loan receivables with high debt risk to product sales receivables

Overseas Bad Debt Allowance – Yen Basis
1Q
Bad debt allowance

2Q

3Q

4Q

Full Year¥8.1 billion¥8.1 billion¥7.9 billion¥6.9 billion¥31.2 billion

+35%

+5%

-1%

-12%

+9%

YoY

FY 2016 Initiatives

Product Comparison for Three Companies in Overseas Markets
Credit Cards

Hire Purchase

YoY
Hong
Kong

Thailand

Malaysia

Personal Loans

YoY

Total

YoY

YoY

Yield

22.2%

-0.7%

－

－

19.9%

+0.2%

21.5%

-0.4%

Bad debt
allowance ratio

4.2%

-0.8%

－

－

8.1%

-1.4%

5.4%

-1.0%

Margin

18.0%

+0.7%

－

－

11.8%

+1.6%

19.0%

+0.6%

Yield

23.6%

-1.3%

23.3%

-1.5%

26.7%

0.0%

24.7%

-0.8%

Bad debt
allowance ratio

6.3%

-0.6%

7.9%

-2.3%

9.2%

0.0%

7.7%

-0.8%

Margin

17.3%

-0.7%

15.4%

+0.8%

17.5%

0.0%

17.0%

0.0%

Yield

14.6%

-2.9%

16.8%

-0.6%

16.8%

-2.0%

16.5%

-1.2%

Bad debt
allowance ratio

4.0%

+0.8%

4.9%

-0.1%

8.8%

+1.6%

5.7%

+0.2%

Margin

10.6%

-3.7%

11.9%

-0.5%

8.0%

-3.6%

10.8%

-1.4%

（１） Promote Digitalization Worldwide（２） Improve Product and Service Convenience（３） Improve Profitability of Assets*Bad debt allowance ratio = Provision of allowance for doubtful accounts / Finance receivables

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201515

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201516

1.1: Digitalization

1.2: Introduce Smartphone Apps to Improve Convenience Promote digitalization in Japan and overseas to further increase customer convenience and raise operating
efficiency.
 Introduce AI, use table tablets, and initiate fingerprint authorization testing for ATMs.

 Develop AEON Wallet, an app that feels like using a wallet.
 We plan to include efficient sales promotions for customers visiting stores, point administration, and settlement
functions.

Functions (Planned)
1. Informationinquiry

Inquiry various AEON Card information bysmartphone

2. Various
registrations &changes

Various registration and change
procedures via smartphone

AI in use
3. Coupondelivery

Cardless fingerprint authorization

Product explanation using table tablets

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201517

Various coupons delivered to customers’smartphones

4. Informationdelivery

Deliver optimized information tocustomers

5.Credit cardsigh-up

Issue AEON Cards via customer smart
phonesAEON Financial Service Co., Ltd.

Results for Fiscal Year 2015

1.3: Employ Underutilized AEON Group Business Platform

2.1: Promote Cross-Selling Enhance use of tablets to sign up cardholders at strategic small stores.

 Expand Flat 35 housing loan origination channels nationwide.

 Also deploy in greater Tokyo, and strengthen initiatives at new AEON Group shopping malls and drugstores.

 Use AEON SELECT CLUB benefits to promote cross-selling with credit cards.

18

Housing Loans

Share of Households
Tokyo

Simplifies the application process
AEON Financial Service Co., Ltd.

Variable interest rate

18%

Greater Tokyo

32%

Fixed interest rate
(3, 5 and 10 years)

National average

46%

Flat 35

Promotecross-selling

Increase AEON CARDSELECT members■ Sell at in-store branches nationwide

Use the AEON Group’s platform■ AEON SELECT CLUB benefits
Results for Fiscal Year 201519

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201520

2.2: Introduce Mobile ATMs

3: Review Receivables Portfolio

 Introduce mobile ATMs. With electricity and wireless communications powered by a generator, they can be deployed nationwide.

 Improve safety and efficiency of receivables with screening that emphasizes returns.

 They are able to meet a wide range of cash dispensing needs to support customers in areas affected by disasters and at events.

 Analyze issues including product, area, and credit duration.

AEON MALL Kumamoto

Japan (¥3,343.5 billion)

Overseas (¥452.5 billion)*Before securitization of receivables

17%*Before securitization of receivables

17%

25%
37%
8%

Makuhari Messe Flea Market

Installment sales finance

36%
14%

Other

Shift to high-return receivables

Results for Fiscal Year 2015

21

AEON Financial Service Co., Ltd.

Card shopping
Cash advances

Unsecured loans
Housing loans total

AEON Financial Service Co., Ltd.

17%

Card shopping

28%

Iinstallment sales financeUnsecured loans

Shift to highly safe receivables

Results for Fiscal Year 201522

Forecast of Results for FY 2016
 We plan to increase cash dividends per share by a ¥2.00 commemorative dividend, with an increase of ¥1.00
in both 1H and 2H.

Forecast of Results
Results
YoY
Ordinary income¥380 billion+6%

Ordinary profit¥63 billion+6%

Net income attributableto owners of the parent¥37 billion+3%

Net income per share¥186.19+3%

Year EndInterim
Forecast
Dividend forecast¥29

AEON Financial Service Co., Ltd.

YoY

+¥1

Forecast¥39

Full Year

YoY

+¥1

Forecast¥68

Initiatives in Malaysia

Payout Ratio

YoY

Forecast+¥2

36.5% -0.1%

YoY

Results for Fiscal Year 201523

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201524

External Environment in Malaysia

Earnings Structure in Malaysia

 The export environment is challenging because of the worsening economic outlook for the United States andChina, and a financial austerity program is in place. The real GDP growth rate for 2016 is forecast to be +4.0%
to +4.5%, compared with +5.0% for 2015.

 High dependency on installment products, which still account for over 60% of operating income.

 Lower commodity and oil prices, ongoing currency depreciation, and the impact of the GST on retail sales areconcerns.

 Promoting AEON BIG co-branded cards to increase cardholders and expand transaction volume.
 Expanding the insurance agency business and entering the e-money business to increase fee income.

Composition of Transactions(MYR million)

Composition of Operating Income■Credit card ■Hire purchase ■Motorcycle HP■Auto HP ■Personal loans ■Other(MYR million)

4,000

(%)

December 31,
2014

GDP Growth and 2016 Forecast

10
6
4
2
0
-2
-42000

2005

2010

2015

3.4%

3.0%

WTI
crude oilprice

USD 59.1/bbl

Palm oilprice

USD 624.5/t

USD 520.1/t

USD 1＝
MYR 3.6

USD 1＝
MYR 4.2

USD 37.2/bbl

3,616

3,242

3,406

27.7%)

26.9%

16.2%

15.5%

2,500
2,000
1,500

26.3%

712

600

13.7%
19.5%

400

19.4%

500

16.3%

11.4%

2013

2014

0

928

800

20.3%
12.8%

USD :
MYR

26.2%

24.2%

27.1%

1,050

1,000

10.2%

1,000

2016

-6

3,500
3,000

Retailsales
growth8

December 31,
2015■Credit card ■Hire purchase ■Motorcycle HP■Auto HP ■Personal loans ■Other

1,200

200

18.7%
0

2015

8.7%
13.0%

13.2%
16.5%

31.5%
32.2%
17.8%

31.5%

12.7%

7.5%
22.2%
5.5%
2013

19.8%

18.5%
6.9%

9.2%

2014

2015

The growing share of credit card and fee income is transforming our earnings structure.

AEON Financial Service Co., Ltd.

Results for Fiscal Year 2015

25

AEON Financial Service Co., Ltd.

Results for Fiscal Year 2015

Doubtful Accounts in Malaysia

Doubtful Accounts in Malaysia

 Collections in service businesses, agriculture and retailing have deteriorated since the GST was
introduced.

 More stringent screening, mainly for auto and motorcycle installment loans.

26

 Delinquent rate has been trending downward recently.

 We are increasing the provision of allowance for doubtful accounts in regions where the abovebusinesses account for a substantial share of operating income.
 The head office has structured a support system for regions to focus on debt collection.

Customers by Business

Geographic Distribution of Provision of
Allowance for Doubtful Accounts(MYR million)
300

Metro
Kuala
Lumpur

North

South

East
Coast

East Malaysia

Metropolitan

250
Sabah

26%

15%

18%

27%

27%

17%

Retail

11%

11%

11%

10%

12%

16%

200

Mfg.

21%

3%
32%

5%
31%

11%
10%

12%
7%

7%
11%

225

6,000

Monthly receivable balance

10.5%

5,000

Delinquency rate

10.0%
9.5%

59%

173

11.0%

Delinquent loans

4,000
9.0%

52%
150

1%

首都圏支社
Kuala Lumpur

Sarawak

Service

Agro

7,000

284

Other Regions
地域支社

Finance Receivables and Delinquency Rate
(MYR million)

3,000

40%

8.5%
2,000

100

8.0%

1,000
Public

16%

22%

14%

24%

22%

22%

Other

25%

17%

21%

17%

20%

27%

50

60%

48%

0

7.0%
Aug.

0

FY 2013
AEON Financial Service Co., Ltd.

7.5%

41%

FY 20142012

FY2015Results for Fiscal Year 2015

Feb.

27

AEON Financial Service Co., Ltd.

Aug.

2013

Feb.

Aug.

2014

Feb.

Aug.

2015

Feb.

2016

Results for Fiscal Year 201528

Initiatives to Digitalize Branches

Initiatives to Digitalize Branches We have been opening digital branches since FY 2015, and now have three in operation.
 We are promoting cashless, paperless operations by introducing self-service terminal payment at ATMs andapplications via tablet.

Menara Olympia Branch Before
Renovation

ATM Corner before Renovation

Having More ATMs Reduces
Operating Costs

Pre-Digitalization Application

Tablet Applications Increase
Operating Efficiency

Menara Olympia Branch Exterior After
Renovation

We will renovate and digitalize 30 existing branches in FY 2016.

AEON Financial Service Co., Ltd.

Results for Fiscal Year 2015

29

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201530

Initiatives to Digitalize Branches – Operating Efficiency Gains Less time managing cash has reduced working hours and overtime.
 Cashless operation has reduced costs associated with cash collection.
 Shorter customer wait times, and tablet terminals simplify application.

Operating Efficiency Gains at Menara Olympia BranchOct.-Dec.

Jan.-Mar.

Change from
Pre-Renovation

Total working time (hours)

5,068

4,082

-19%

Cash collection costs (MYR)

13,547

6,750

-50%

Branch floor space (sq. ft.)

2,760

1,260

-54%

Rent (MYR)

96,67857,078-41%

7 min 46 sec

7 min 10 sec-36 sec

18,392

24,761+35%(ATM cash collection + counter cash collection)

Average wait time for application
ATM use (times)

Initiatives in Cambodia

Achieved better customer service, higher employee productivity and lower branch operating costs.
AEON Financial Service Co., Ltd.

Results for Fiscal Year 201531

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201532

Cambodia Business Overview

Initiatives to Date

■Cambodia Business Overview■ History

Company
nameEstablished
Capital(As of Dec. 31, 2015)

AEON SPECIALIZED BANK (CAMBODIA) PLC.
*Name changed from AEON MICROFINANCE (CAMBODIA)CO., LTD. in February 2016

 Changed to a specialized bank in February 2016.
 As a specialized bank, received authorization to
become Cambodia’s first credit card issuer andbegan issuing cards in February 2016.

Employees

Dec.

Began offering installment loans for consumer
durables (purpose loans)

October 2011

Branches

8

Businesses• Installment loans for consumer durables• Personal loans• Credit cards (new)Transaction
volumeUSD 33.4 million (+35% YoY)

OperatingincomeUSD 7.6 million (+43% YoY)

Apr.
Jun.

Opened Siem Reap Branch

Sep.

Began issuing member cards

35,000(Affiliated merchants)

Transaction volume

30,000Purpose loan
affiliated merchants
25,0001,260

24,716Jan.
Mar.

Began offering personal loans

2015

Oct.

Acquired specialized bank license

15,0002016

Feb.

Completed transition to specialized bank
Began issuing credit cards

10,00020,000900
14,676

7,634
5,327
5,000

USD 1.4 million (+35% YoY)

3,060
256

USD 27.9 million (+34% YoY)

2,368

2012

Results for Fiscal Year 2015

■Cambodia’s Credit Card Market

33

11(only commercial banks
could issue until now)
1. ACLEDA Bank

10,486 cards

2. Union Commercial
Bank7,378 cards

3. Canadia Bank

6,040 cards(Source: National Bank of Cambodia Annual Report 2015)

Reasons Card Issuance Growth Has Been Slow
• Until now, only commercial banks could issue credit
cards.
• Issuing banks have been conservative, only issuing
cards to people with a monthly income above USD
1,000, which is only 4% of the working population.
• A cash security deposit was a requirement at
application.
• Another constraint has been the limited number oflarge retail facilities where cards could be used.

Personal loan application

2013

2014

2015

(5,000)AEON Financial Service Co., Ltd.

(100)

Results for Fiscal Year 2015

■Cambodia’s First Modern Shopping Mall

■Credit Cards Issued
39,836

Installment loan application

34

AEON MALL Phnom Phen

(Cards)AEON Financial Service Co., Ltd.

1,056

874

1

(467)

Credit Card Business Launched
Cards issued
in Cambodia

400

-0

*Ranks 10th among 53 companies in the microfinanceindustry

AEON Financial Service Co., Ltd.

Issuerranking

1,400

861

Newspaper ad announcing AEON SPECIALIZED BANK

Issuers

1,616

Net income

403

Receivables

33,420Operating income

Eliminated accumulated deficit

2014

Ordinary
income(USD thousand)Became profitable on a monthly basis

USD 10 million
430

・ Applications now average about 6,000 per month

Oct.
2011

2013

■ Performance
Established AEON MICROFINANCE(CAMBODIA) CO., LTD.

■ AEON MALL’s 5-km Radius Service Area

39,83640,00031,261
30,00024,4125-km radius

21,35318,19820,00014,003
10,000

-0
2010
2011
2012
2013
2014
2015
(Source: National Bank of Cambodia Annual Report 2015)

Factors Differentiating AEON
• Creating a group of cardholders centered on thelargest shopping center in Cambodia, AEON MALL,
which serves 280,000 visitors a week.
• Using expertise in unsecured loan business to issue
true credit cards.

5-Kilometer Radius Service Area

Overview of AEON MALL Phnom Phen
Date opened

June 2014

Population

770,000

Floor space

68,000 m2

Households

200,000

Household income

78% of households above
USD 400 per month

Specialty stores

190

Issuing AEON cards will generate synergies as we sign up
customers in the vicinity of our mall as cardholders.

Results for Fiscal Year 201535

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201536

Signing Up Cardholders at AEON MALL

Signing Up Cardholders at AEON MALL

 Initial Sign-Up of AEON Gold Card Cardholders(From April 8, 2016)•

Began taking Aeon Gold Card applications frompeople who already have credit cards (annual
monthly income above USD 1,000).

•

726 applications from the start on April 8 throughApril 31.

•

We will focus on our 50,000 loan customers to addclassic card cardholders in stages.

High-class credit card application desk

Digital signage provides instructions
AEON Financial Service Co., Ltd.

Results for Fiscal Year 201537

Digitalization Initiatives: Digital Branches 1.1

AEON Financial Service Co., Ltd.

Credit card visual display
Results for Fiscal Year 201538

Digitalization Initiatives: Digital Branches 1.2■ Introducing cutting-edge branch concepts in Japan, Thailand and neighboring countries.
■ Promoting digitalization encompassing digital signage, and paperless operations.
New Branch Concept

Former Branch

Can send short mobile phone messages to summon waiting
customers

Card activation via tablet

AEON Financial Service Co., Ltd.

Results for Fiscal Year 2015

39

AEON Financial Service Co., Ltd.

Purpose loan application using a tablet

Advertising on large screens

Results for Fiscal Year 201540

Digitalization Initiatives: Net Use 2.1(Reference) Allowance for Doubtful Accounts and Allowance for Loss on
Refund of Interest Received by Segment■Situation in Cambodia■AEON Financial Service on Facebook■ Allowance for Doubtful Accounts (by Segment)•

The average age is young in Cambodia
at 24

30,000 views in three days after posting our credit card TV commercial•

The post civil war generation welcomes
digitalization and Internet use isspreading rapidly•

78% of Internet users, or about 3 million
people, use Facebook

CreditFee(Billions of yen)

Banking Overseas

Total

Allowance for doubtful accounts,
beginning of period

26.1

3.1

3.2

16.8

49.2

Provision of allowance for doubtful
accounts

12.6

1.4

0.0

31.2

45.6

Write-off of doubtful accounts(including transferred debt)

11.2

0.3

0.0

33.0

45.4

Allowance for doubtful accounts,
end of period

27.5

4.2

3.2

15.0

49.4

(Domestic subsidiaries) AEON Bank: ¥3.2 billion, AEON Product Finance: ¥4.7 billion, AEON Housing Loan Service: ¥1.2 billion■ Allowance for Loss on Refund of Interest Received(Billions of yen)

FY 2014

Café visitors enjoying the Internet

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201541

FY 2014
Results

18.1
4.8
3.9

Ordinary income
Ordinary profit
Net income

YoY

122%
138%
139%

FY 2014

57.6
10.1
8.0

Ordinary income
Ordinary profit
Net income

Results

19.5
4.7
3.8

YoY

118%
101%
101%

FY 2014
Ordinary income
Ordinary profit
Net income

AEON Financial Service Co., Ltd.

28.3
9.4
7.0

Provision for loss on refund of interest received

5.8

3.3

Interest refunded(Sums refunded and appropriation of interest to principal)

4.0

3.9

Allowance for loss on refund of interest received, end of
period4.8

4.2

AEON Financial Service Co., Ltd.

Results for Fiscal Year 2015

42

(Billions of yen)

YoY

108%
98%
98%

Exchange rates
・2014: HKD 1 = JPY 14.04
・2015: HKD 1 = JPY 15.54

FY 2015
Results
Number of cardholders

Results

62.0
11.3
9.0

YoY

108%
113%
113%

Exchange rates･2014: THB 1 = JPY 3.33
･2015: THB 1 = JPY 3.48

(Billions of yen)

FY 2015
YoY

128%
129%
128%

Results

32.0
9.1
6.9

106%
97%
99%

Plan

YoY

27.40 million+1.52 million

Card shopping transaction volume¥4,104.7 billion¥4,430.0 billion

108%

E-money transaction volume¥2,130.7 billion¥2,250.0 billion

106%

Balance of cash advances¥405.5 billion¥433.0 billion +¥27.5 billion

Balance of small consumer
loans¥61.8 billion¥85.0 billion +¥23.2 billion¥467.4 billion¥518.0 billion +¥50.6 billion

Balance of unsecured loans
YoY

FY 201625.88 million

FY 2015■ Results of AEON Credit Service (M) Berhad

Results

4.8

FY 2015■ Consolidated Results of AEON THANA SINSAP (THAILAND) PLC. (Billions of yen)

Results

3.0(Reference) FY 2015 Business Plan (Domestic)(Reference) FY 2014 Results (Hong Kong, Thailand and Malaysia)■ Consolidated Results of AEON Credit Service (Asia) Co., Ltd.

FY 2015

Allowance for loss on refund of interest received,
beginning of period

Exchange rates
・2014: MYR 1 = JPY 32.58
・2015: MYR 1 = JPY 30.34

Results for Fiscal Year 201543

AEON Financial Service Co., Ltd.

Results for Fiscal Year 201544