Corporate Brochure

AIFUL Corporation2023

Corporate Philosophy‘Earn the trust of society through corporate activity based in
integrity’
The AIFUL Group has upheld the corporate philosophy: “Earn the trust of society
through corporate activity based in integrity” as an unalterable underlying
philosophy, and in April 2021, restructured our philosophy system and defined our
VISION, MISSION, and VALUE.

VISION / MISSION / VALUE

For realizing a society where each person can play an active roleLet’s go beyond customers' expectations
Let’s make tomorrow better
We respect each other‘s individuality

Sincerity

EffortTrust

Gratefulness

For realizing a society where each person can play an active role
Your originality in your daily life and work. AIFUL hopes to brighten our society
further with the characteristics of individuals. So that all kinds of people canenvision a future in which they will be able to be themselves, we value individuality.

1Greetings

We aim to grow as an “IT-based financial group” by reforming ourorganization and systems according to the changes in the businessenvironment and utilizing digital technologies.

We

are

committed

tocontributingto

RPA, and are targeting ROA of over 2% andeconomy and society by supporting ourcustomers’
businesssoundactivities

philosophy:
through“Earnconsumption
under

the

corporate

the

trust

ROE of over 15% as indicators.

andIn terms of "growth potential," we arecorporateofactivitytargeting "10% annual growth in operating

societybased

assets"

in

group

by

reforming

aggressively

developing

theguarantee business and overseas business,

integrity,” and aim to “grow as an IT-based
financialbywhich are expected to grow in the future.

ourIn the business environment surroundingorganization and systems according to the

our group, we continue to face several

changes in the business environment andchallenges that require close attention,utilizing digital technologies.

such as the economic slowdown caused by
For this, we are strengthening the hiring

the spread of the COVID-19, soaring energy

and training of personnel with expertise in

prices due to the Ukraine issue, and rising

the three areas of digital promotion, datainterest rates worldwide. However, we will

analysis, and design. By promoting in-house

continue to aim “to improve profitability

production in each field, we aim to "improvecustomer"reduceconveniencecosts,"

andandvisibility,""increaseresponse

and efficiency” and “achieve high growth
rates” by capturing the demand for funds
accompanying the recovery of economic

speed”.

activity, while further enhancing "reliability"

In order to realize our vision, we adopted

by securing stable earnings.

a management strategy that emphasizes abalancebetween"Profitability,"

andWe will continue to do our utmost to meet

"Growth Potential.

the expectations of all stakeholders.
In terms of “profitability,” we are striving
to reduce costs by accumulating excellent
assets,attracting

customers

effectively

and efficiently, and introducing BPR andJune 2023
Mitsuhide Fukuda
President and CEO

2

AIFUL's strengths

1. High degree of flexibility
and speedy
decision-making

2. A wide variety of
products and services

3. Credit and screening
capabilities that have been
nurtured for many years

1. High degree of flexibility and speedy decision-making

The AIFUL Group strives to diversify its business portfolio in Japan and abroad by utilizing its prompt
decision making capabilities unique to a company independent of business groups.

Prompt decision making

financial institutions,

The Group has been making decisions and executing

Asia.

operations in a prompt manner since the introduction of

AG MEDICAL CORPORATION launched a financial

the executive officer system in June 2007. One of theservices specializing in the healthcare industry on Julygreat strengths of AIFUL, an independent non-bank

2021, AG Smile Leaseback Corporation started

company, is being able to make decisions flexibly andleaseback business on April 2022.

promptly in the rapidly changing times.

Furthermore, in January 2023, FPC Co., Ltd., which
engagesinsmall

and overseas operations inamountshort-term

insurance

Diversification of the business portfolio

business, and in March 2023, Seven Seas Co., Ltd.,To provide products and services tailored to the needs

which provides system engineering services, joined theof customers, the AIFUL Group mainly engages in the

our group. We aim to create businesses that meet all

loan business for customers and small businesses, thecustomer needs through business diversification.

credit card business, credit guarantee business for
AIFUL Group’s Business
Loan/Credit Guarantee

Small Business Loan

Credit/Credit Guarantee

BNPL

Social Lending

Venture Capital

Debt Collection

Restructuring

LeasebackWarehousing

Rent Guarantee

Small Amount
Short-Term Insurance

System engineering
service3

Overseas2. A wide variety of products and services
To achieve the aims of its customer first policy, the AIFUL Group creates new products as each
employee of the Group always listens sincerely to feedback from customers and thinks about
products and services they need.
The AIFUL Group develops products with free ideas

customers using cash advances, 24/7 immediate transfer

and creativity, with each and every employee working

services that allow customers to transfer money anytime

seriously with customers. We aim to realize a customer-

and anywhere, and a variety of affiliated credit cards

first principle with a wealth of products and services,and V-preca that meet diverse needs.

including smartphone apps that pursue convenience for3. Credit and screening capabilities that have been nurtured for many years
The credit and screening capabilities of the AIFUL Group are based on its “scoring system,” inwhich credits are judged based on statistical data, and the know-how the Group has developed
over a long period.
Scoring system

account all kinds of information, to ensure that facilities

The scoring system is a system in which credits can be

can be used easily and comfortably. AIFUL Group

provided to customers promptly and uniformly by using

continuously provide ongoing training to our decision

the large amount of credit information that the Groupmakers as credit professionals to ensure that we meethas collected over the past years. The system wasour customers' needs to the fullest extent.

developed over a long period of time, and is used for allof the AIFUL Group’s operations, including credit
screening, the establishment of limit amounts andinterest rates in the loan business, as well as theguarantee business and the credit card business.
Expertise of decision makers
The Group makes the upmost efforts to meet the needsof customers. When extending credit under thecustomer first policy, decisions must be made byaccurately assessing the actual situation, looking into
personal circumstances, characteristics and taking into4

Introduction of Business
Loan Business
The AIFUL Group provides unsecured loans and small business loans tailored to the needs ofcustomers by applying the know-how it has developed over the years
Unsecured loans
In unsecured loans, the AIFUL Group responds toneeds of customers through the “4S” approach, in
addition to developing creative products, which is theGroup’s strength. The four Ss are “Speed (prompt andconvenient),” responding to the urgent needs ofcustomers, “Simple (simple and convenient),” offering
simple application procedures and transactions, “Secret(maintaining confidentiality),” observing the privacy of
customers, and “Safe (safety and reliability),”providing counseling when customers receive or returnloans.

Small business loans
Applying the credit know-how that it has developed
over the years, the AIFUL Group responds to thefunding needs of individuals and business operators
through a diverse range of products, and clear andprompt credit offering. The product lineup includes
AIFUL’s “business support plan,” in which either
secured or unsecured loans can be extended, and AG
MEDICAL ’s “Secured Medical Loan,” a product that
responds to the needs of medical institutions,dispensing pharmacies and nursing business
managers.
The AIFUL Group provides
a variety of channels tailoredto the needs of customers.

Smartphone App

WEB

Unmanned shop

Affiliated ATMs

Transfer

Credit Card Business
Under the “Be Unique” concept of LIFECARD, the AIFUL Group responds to the needs ofcustomers by boldly taking on challenges based on its original creative capabilities without being
contained in the existing frames, and providing independent and unique products and services.
Credit card business
LIFECARD-which is issued under a license agreementwith Mastercard, Visa and JCB-can be used at member
shops not only in Japan, but also overseas. With
LIFECARD, the AIFUL Group provides reliable,
convenient, and unique services.
We are responding to the needs and lifestyles of ourcustomers by actively working on new services andadded value, such as responding to Apple Pay, Google
Pay, forming tie-ups with artists, and forming cardalliances with cloud accounting entities, university
hospitals, and banks.

Prepaid card business
LIFECARD began selling V-preca for the first time inJapan in 2011. V-preca is an online-designated Visa
prepaid card that can be used just like a credit card at
online Visa membership shops. No personal
identification or examination is required for V-preca,
and it can be used for a wide range of purposes. In
addition to private customers who mainly use it for
online shopping and games, V-preca is used bybusiness operators for campaigns and incentives. As ofthe end of March 2023, a total of over 19.4 million Vpreca cards have been sold since the initial release in
2011.

5

Guarantee Business
The AIFUL Group runs a guarantee business with financial institutions in unsecured loans
for individuals and small business loans for companies and small business operators. Its twobrands for this business are the AIFUL and LIFECARD brands.
◇ Guarantee business for individuals and small
business operators
The AIFUL Group has established a business model inpartnership with financial institutions in the guarantee
business. This model helps to integrate the brand power
and the level of familiarity each financial institution
enjoys in its respective region, and combine these withthe credit technologies that the AIFUL Group possesses
in the retail sector. The credit guarantee business has ahigh “Security - reliability” “Profitability” and“Growth” which is one of the field that the Group will
focus. AIFUL Group is striving to expand the credit
guarantee tie - ups mainly in credit
guarantee for small businesses by applying the knowhow that it has developed over the years. As of the endof March 2023 , the AIFUL Group has establishedpartnerships with 149 financial institutions (105 banks

for the individuals and 105 banks for companies andbusiness operators) for the AIFUL brand, and 158 (158banks for the individuals and 39 banks for companies
and business operators) for the LIFECARD brand.

Overseas Business
The AIFUL Group manages its financial business in Thailand and Indonesia by applying theknow-how that it has developed over the years in Japan.
AIRA & AIFUL Public Company Limited(the Kingdom of Thailand)
The AIFUL Group established a joint venture, AIRA &AIFUL Public Company Limited (A&A), with AIRA
Capital, an overseas subsidiary in the Kingdom ofThailand, in December 2014. This company started a
consumer finance business in September 2015, using the
A Money brand. Since the commencement of operation,
the loans outstanding has steadily increased, and as ofDecember 2021, the loans outstanding is 23.4 billion
yen and the number of branches is 46.

REKSA FINANCE(the Republic of Indonesia )REKSA FINANCE manages the used cars loanbusiness in Indonesia. The AIFUL Group obtained
shares of it and participated in the management in
May 2017. REKSA FINANCE is working to expand
its business assets.

6Services Tailored to the Needs of Customers
Network
Branches
AIFUL manages a 817 unmanned branches nationwide(as ofMarch 31, 2023).
From April 2019, we began selling corporate products
within the AIFUL Group as a corporate sales organization.
We aim to achieve further business expansion by promoting
LIFECARD's merchant enrollment, corporate card sales, and
AD MEDICAL's medical fee secured loans, among otherproducts from our group, in a flexible and efficient manner.
As of the end of March 2023, there are 23 sales branches.
AIFUL and partnership ATMs
The AIFUL Group strives to ensure the convenience ofcustomers by making ATMs available to customers. Thereare 249 AIFUL ATMs, and as many as 99,983 partnership
ATMs (as of March 31, 2023). AIFUL ATMs also provide
services to customers of LIFECARD and AG BUSINESSSUPPORT, enabling them to fully enjoy the merits of the
AIFUL Group.

The Shijo Omiya Branch,
Features an interior decoration style reminiscent of a Kyomachiya or a
traditional Kyoto town house.

Temairazu
Unlike the existing automatic
contract machine, customers are
not required to operate machines
when using Temairazu (simple and quick), an unmanned
contract telephone box. They process the necessary
procedures directly with operators through the telephonesthat are installed in the box, shortening the entire contract
process from application to actually entering the contract. In
this sense, the box serves as a contract room that meets theneeds of customers, including those who are busy and haveno time to go through lengthy procedures. The AIFUL Grouphas established these boxes at 856 places nationwide (as ofMarch 31, 2023).

Smartphone Application
AIFUL renewed its smartphone application in May 2018, as
we see it as our important point of contact with customers.
To further increase customer convenience, the application
allows complete on-line operation from application tocontract, logging-in with biometric authentication for safety,
and card less withdrawal and deposit transactions at Seven
Bank and LAWSON Bank ATMs throughout Japan, as well
as real-time checking of current loan status.

7

By using smartphone app
instead of a card, customer
can borrow and repay fromnearby Seven Bank ATM or
Lawson Bank ATM.

24/7 Loan service
In December 2020, we have revamped our loan services
to allow borrowers to borrow via wire transfer, enabling
immediate borrowing 24 hours a day, 365 days a year.
We aim to make it more convenient for customers to use
our service by making it possible to immediately borrowmoney “anytime,” regardless of night, weekend or
holidays, and “anywhere.

Contact Center
The Contact Center in Kusatsu City, Shiga Prefecture has
established a sales system that integrates customer
service and administrative operations, including reception
at Temairazu, accepting web applications, responding tovarious inquiries, providing various product guidance,and providing payment guidance.
In addition, we have introduced communication tools
such as CTI, a telecom system that integrates telephones
and computers, Chatbot, a chatbot messaging service thatallows users to switch from automated chat responses toattended operators, and Robot Call, a service that links
IVR, an automated voice guidance service. We
attentively and efficiently deal with inquiries from ourcustomers throughout the country.
The Contact Center in Kusatsu City, Shiga Prefecture has
established a sales system that integrates customer
service and administrative operations, including reception
at Temairazu, accepting web applications, responding tovarious inquiries, providing various product guidance,and providing payment guidance.

In addition, we have introduced communication tools
such as CTI, a telecom system that integrates
telephones and computers, Chatbot, a chatbot
messaging service that allows users to switch fromautomated chat responses to attended operators, andRobot Call, a service that links IVR, an automatedvoice guidance service. We attentively and efficiently
deal with inquiries from our customers throughout thecountry.

Storing Customer Feedback in the Database
The AIFUL Group collects opinions and requests fromour customers as “customers’ voices” and saves them ina database. This is used to improve our customer service
and to develop highly convenient products that can meetthe financial needs of customers.

TV Commercial
The AIFUL Group broadcasts TV commercial
messages featuring Mao Daichi, a popular actress, witha catch copy “Ai Ga Ichiban (Love(AI=AIFUL) is thebest)” aiming to earn the “integrity” “reliability” and“trust” of customers.

8

AIFUL Group’s ESG
The AIFUL Group promotes ESG (Environment, Social, and Governance) initiatives, and our
mission is to meet the expectations of the society that supports us, our employees, business partners,
and shareholders and to contribute to society through all of our business activities.

Environment
Management of energy consumption
As one of the AIFUL Group's initiatives to address environmental issues, we are striving to
reduce energy consumption and manage the amount of energy used.
Resource saving such as web-based credit card statements
We are promoting paperless and environmentally friendly services by making credit card
statements available on the Internet.
Endorsement of COOL CHOICE
The AIFUL Group endorses COOL CHOICE, a national campaign promoted by the Ministry of
the Environment to prevent global warming.
■Implementation of Cool Biz Warm Biz
Use of LEDs at the entire Kusatsu Center Centralized management of elevator thinning and air
conditioner operating hours

SocialSponsorship of Hackathons
In order to deepen "coexistence with society and local communities" through human resource support andcollaborative activities in various specialized fields, we have begun sponsoring hackathons (aihack) in March 2019.
The “ai ” of “aihack” has two meanings: "show interest = love" for students who will lead the future and humanresources in various specialized fields, and "AI" that reminds of technology.
In addition to students in Japan, AIRA&AIFUL, a company that operates a loan business in Thailand, also holds
hackathons for students at Chulalongkorn University. This effort underscores our commitment to contributing not only
to local communities domestically, but also internationally through our overseas presence.

Social Contribution Through Credit Cards
LIFECARD issues social-contribution cards, and donates part of revenues to affiliated groups and NPOs.
In the point program, we establish a charity course, to enable members to donate by using their points.
Also, in cooperation with the Musashi-koyama shopping street “PALM,” we issue cards with the prepaid feature. By
doing so, we aim to improve the convenience of the shopping street for customers and revitalize local economies.

9

Establishment of Social Finance Framework
Based on our corporate philosophy, the AIFUL Group is committed to developing products based on the concept offinancial inclusion and contributing to the development of domestic industry by supporting companies that dare to
dream and take on new challenges. At the same time, we are working to contribute to society by providing businesssupport for the healthcare and welfare sectors in Japan, which are facing major social issues due to the aging of the
population, and by providing access to financial services in emerging countries with underdeveloped financial
infrastructures.
To enhance these efforts, we have pioneered the industry's first 'Social Finance Framework' in March 2023.

GovernanceRisk Management Committee
Chaired by the President and Representative Director, this committee is composed of all directors. The committee
regularly receives risk status reports to identify risks, constantly reviews the risk management system, and reports todirectors with the purpose of preventing risks and controlling losses in times of crisis through the establishment of an
appropriate risk management system. In principle, these meetings are held on a quarterly basis and extraordinary
meetings are held as necessary.
Whistleblower Hotline
In accordance with the Whistleblower Protection Act and other laws and regulations, we have established internalreporting system regulations and established a whistleblower hotline for persons working at corporations,
corporations, or organizations that maintain a business relationship with the AIFUL Group.

Compliance and Corporate GovernanceFor the AIFUL Group, compliance means to meet the expectations of all stakeholders, not just to comply withlaws and regulations. Our important goal of corporate governance is “to be a company that is trusted bystakeholders and society, and achieves corporate management with transparency, impartiality and efficiency.”

Establishment of a Compliance Scheme
AIFUL established a Compliance Committee with external members, including a lawyer. The Committee holds
regular meetings to formulate and manage compliance programs, review and discuss various measures for
improvement of internal management schemes, collect information, carry out preventive measures, and makedecisions on employee education.

Establishment of a Group Compliance Scheme
The AIFUL Group Compliance Committee was formed with the aim of sharing a unified corporate ethic andestablishing a compliance scheme throughout the Group.

10Corporate Information (AIFUL)
Corporate Overview(as of March 31, 2023)

Company NameAIFUL CORPORATIONHead Office381-1 Takasago-cho, Gojo-Agaru, Karasuma-Dori, Shimogyo-ku, Kyoto, Japan

Date of Establishment

April 1967

Paid-in Capital

94.0 billion yen

President

Mitsuhide Fukuda, President & CEO

Business Outline

Loan Business (unsecured, small business), Guarantee Business

Stock Listing

Listed on October 1998
Prime Market of the Tokyo Stock Exchange (securities code: 8515)

Fiscal Year

April 1 to March 31

Loan Balance(non-consolidated) 502.8 billion yen(consolidated)
648.7 billion yen

Number of Employees(non-consolidated) 1,059(consolidated)
2,180

Organization Chart（ as of April 1, 2023)

General Meeting of Shareholders
Board of Directors
Risk Management Committee

Audit and Supervisory Committee

Audit and Supervisory Committee
OfficeCompliance Committee

ChairmanPresident

Management Planning Division

Finance Division
Group Systems Division

Guarantee Business Division
Loan Business Division

Credit Management Division

11

Management Planning Department
Operation Management Department
Subsidiary Management Department
Overseas Business Department
Accounting Department
Finance Department
Group Finance Department
Systems 1
Systems 2
Group Digital Promotion Department
Corporate Risk Management Department
General Affairs Department
Legal Department
Personnel Department
Credit Governance Department
Guarantee Business Department
Guarantee Business Promotion Department
Loan Business Promotion Department
Advertising Department
Contact Center 1
Contact Center 2
Business Center
Corporate Sales Promotion Department
Eastern Japan Business Department
Credit Assessment Department
Data Analytics Department
Counseling Center
Assistance Center
Credit Management Promotion Department
Internal Auditing Department

Introduction of the AIFUL Group
1967 Apr

Yoshitaka Fukuda, AIFUL CORPORATION’s current chairman, establishes a sole proprietorship as a consumer finance company.

1978 Feb

Marutaka, Inc. (currently AIFUL CORPORATION) is established and commences operations in three shops in Kyushu and one shop in Kyoto City.

1982 May Marutaka, Inc. absorbs three affiliates. At the same time, its corporate name is changed to AIFUL CORPORATION.
1985 Mar

Introduced first Scoring System (automated credit check system).

1994 Nov

Opened Heartful Center (now Contact Center) .

1995 Mar

Ojido-san, an automatic contract machine, is installed at the Kanda Kitaguchi Branch and Ikebukuro Nishiguchi Branch.

2000 Mar

Listed on the First Section of the Tokyo Stock Exchange.

2001 Jan

Established small business finance company BUSINEXT CORPORATION (currently AIFUL BUSINESS FINANCE CORPORATION)

Mar

LIFE Co., Ltd. becomes a wholly owned subsidiary.

Nov

Established servicer company AsTry Loan Services Corporation (currently AG Partners Corporation).

2004 Mar

Converted KOKUSAI Capital Co., Ltd. (currently AG Capital Co.,Ltd) into 100% subsidiary .

2011 JulThe Group is reorganized.

2014 Jan

LIFE GUARANTEE CO.,LTD (AG GUARANTEE CO., LTD.) commences installment guarantee business.

Dec

AIRA & AIFUL Public Company Limited, a joint venture, is established with AIRA Capital, an overseas subsidiary in Thailand.

2017 May Acquired 40% of shares of REKSA FINANCE, which manages the used cars loan business in Indonesia.
2020 Jun

Established AG Miraibarai Co.,Ltd, which manages the Postpay settlement business.

2021 Apr

Restructured the philosophy established in 2007 and designed it to "VISION/MISSION/VALUEJulAG Medical Finance Co., Ltd., commences the medical fee-type secured loan business

Sep

AG Crowdfunding Co.,Ltd. commences social lending (peer-to-peer lending) business

2022 Apr

Established AG Smile Leaseback Corporation, which manages the Leaseback business
Shifted to 'Prime Market' of the Tokyo Stock ExchangeJul
2023 JanFeb

Renewal of Group Visual Identity/ Announcement of New "Art Symbol" and "Corporate Name Logo"
Acquired shares of FPC Co., Ltd., which manages the small amount short-term insurance business, and became member of the AIFUL GroupAIFUL BUSINESS FINANCE CORPORATION changed its corporate name to AG BUSINESS SUPPORT CORPORATION
Renewal of LIFECARD’s Visual Identity/ Announcement of New "Art Symbol" and "Corporate Name Logo"
Started adverting campaign (TV commercials) for the first time in 16 years at LIFECARDMar

Acquired shares of Seven Seas Co., Ltd., which manages the system engineering service, and became member of the AIFUL Group
Balance of consolidated total receivable exceeded one trillion yen for the first time in 12 years

Financial Highlights (consolidated basis)
Total receivable outstanding
Loan outstanding

Receivable Outstanding (JPY)
1200

1,015.9bn

1000

735.2bn

800

521.8bn

600

820.4bn

816.5bn573.0bn553.3bn

887.4bn(as of March 31, 2023)

Credit Card Purchase Result (JPY)
800

740.3bn

750

697.8bn
582.3bn

707.8bn648.7bn 700

688.5bn
650.9bn

650

400

600

200

550

0

500

2019/32020/32021/32022/3127.4bn132.0bn

2023/3

2019/3120.0

115.3bn

127.0bn

144.1bn

2023/3

80.0

15

60.0

10

40.0
20.0

5

0.0

0

2021/322.3bn25

100.0

2020/32022/330

20

2019/32021/3

Net Profit (JPY)

Operating Revenue (JPY)
160.0
140.0

2020/32022/32023/318.4bn12.3bn9.3bn
1.3bn
2019/312

2020/32021/32022/32023/3

ZIP 600-8420
381-1 Takasago-cho, Gojo-Agaru,
Karasuma-Dori, Shimogyo-ku, Kyoto
TEL: 075-201-2000
https://www.aiful.co.jp/
https://www.ir-aiful.com/