(Translation for reference only)

August 9, 2024

Consolidated Financial Results for the First Quarter of Fiscal Year 2024
For the Three Months Ended June 30, 2024
(Under Japanese GAAP)
Company name:
AIFUL Corporation
Stock Listing:Tokyo Stock Exchange
Stock Code:
8515
URL:
https://www.aiful.co.jp
Representative:
Mitsuhide Fukuda, President and Chief Executive Officer
For inquiry:
Kimihiko Yanagi, General Manager of Operation Management Department
Scheduled date of commencement of dividend payments: －Supplementary materials for financial results: Yes
Earnings release conference: NoneTEL (03) 4503 – 6050

I. Consolidated Financial Results for the First Quarter of Fiscal Year 2024
(April 1, 2024 – June 30, 2024)(Amounts less than one million yen have been rounded down)

1.

Consolidated Operating Results(Millions of yen, Percentages indicate year-on-year changes)
Operating Revenue

Operating Profit

Ordinary Profit

Profit Attributable to
Owners of Parent

Three months ended

June 30, 2024
44,629
15.4%
3,771
21.3%
3,901
14.5%
June 30, 2023
38,66511.5%
3,108(53.0)%
3,408(49.2)%
Note:
Comprehensive income: For the three months ended
5.1%
June 30, 2024:
3,384 million yen(49.3)%
June 30, 2023:
3,220 million yen
Net Income per Share(Yen)

Diluted Net Income per
Share (Yen)

7.70
6.14

–
–

Total Assets

Net Assets

Three months ended

June 30, 2024
June 30, 2023

2.

Consolidated Financial Position
Shareholders’ Equity
Ratio (%)

As ofJune 30, 2024
1,329,930
202,997
March 31, 2024
1,266,374
201,412Reference:
Shareholders’ equity:
As of June 30, 2024:
199,712 million yen
As of March 31, 2024:
197,909 million yen

15.0
15.6

3,722
2,968

25.4%
(50.1)%

II. Dividend Information
Dividend per share (Yen)End of
1st quarterEnd of
2nd quarterEnd of
3rd quarter

Year-end

Annual

–
–

0.00

－

1.00

1.00

0.00

–

1.00

1.00

FY ended March 31, 2024
FY ended March 31, 2025
FY ending March 31, 2025 (Forecast)
Note: Revisions to dividend forecasts: NoneIII. Consolidated Earnings Forecast for the Fiscal Year ending March 31, 2025
(April 1, 2024 – March 31, 2025)

Six months ending
September 30, 2024
Fiscal year ending
March 31, 2025

(Millions of yen, Percentages indicate year-on-year changes)
Profit Attributable toProfit per
Ordinary Profit
Share (Yen)
Owners of Parent

Operating Revenue

Operating Profit

87,900

11.1%

8,900

35.0%

8,800

22.1%

7,900

19.5%

16.33

180,200

10.5%

23,80013.0%

24,0008.8%

21,600(1.0)%

44.64

Note: Revisions to consolidated earnings forecasts: None

*Notes(1) Significant changes in the scope of consolidation during the three months ended June 30, 2024: Yes
Included: 2 companies (FPC Co., Ltd. and BitCash Inc.)
Excluded: –Note: The above two companies are included in the scope of consolidation due to an increase in the number ofsubsidiaries as a result of M&A. For more details, please refer to “3. Consolidated Financial Statements, (4) Notes toConsolidated Financial Statements (Significant Changes in Scope of Consolidation)” on page 12.
(2) Adoption of special accounting methods for quarterly consolidated financial statements: None
(3) Changes in accounting principles, procedures and methods of presentation(a) Changes accompanying amendments to accounting standards: Yes(b) Changes other than those in (a): None(c) Change in accounting estimates: None(d) Restatement: None
Note: The change in accounting principles is due to application of “Accounting Standard for Current Income Taxes” (ASBJ
Statement No. 27, October 28, 2022), etc. For more details, please refer to “3. Consolidated Financial Statements, (4) Notes
to Consolidated Financial Statements (Changes in Accounting Standards)” on page 12.
(4) Number of shares issued (Common stock)(a) Number of shares issued at the end of the period

FY2024 1Q

484,620,136 shares

FY2023484,620,136 shares(b) Number of treasury stock at the end of the period

FY2024 1Q

4,158,228 shares

FY2023

783,316 shares(c) Average number of shares during the period

FY2024 1Q

483,147,588 shares(including treasury stock)

FY2023 1Q

483,702,522 shares* A review for quarterly consolidated financial statements that is conducted by a certified public accountant or an audit corporation: None
* Note: Disclaimer concerning the proper use of business results forecasts
The forecasts and other forward-looking statements contained in this Report are based on information currently available to the Company aswell as certain assumptions that the AIFUL Group has judged to be reasonable. Accordingly, actual results may differ from the forecasts due
to various factors. For matters related to earnings forecast above, please refer to “1. Quarterly Qualitative Information on Business Results, (3)Qualitative Information on the Forecasts for the Consolidated Business Results” on page 5.

Contents
1. Quarterly Qualitative Information on Business Results……………………………………………………..

02(1) Qualitative Information on Business Results ……………………………………...…………………….

02(2) Overview of Cash Flows for the first quarter of fiscal year 2024……………………………………….

04(3) Qualitative Information on the Forecasts for the Consolidated Business Results………………………

05

2. Critical Contracts for Operation……………………………………………………………………………..

05

3. Quarterly Consolidated Financial Statements and Notes……………………………………………………

06(1) Quarterly Consolidated Balance Sheets…………………………………………………………………

06(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

08

Quarterly Consolidated Statements of Income………………………………………………………….

08

Three months ended June 30……………………………………………………………………………

08

Quarterly Consolidated Statements of Comprehensive Income…………………………………………

09

Three months ended June 30……………………………………………………………………………

09(3) Quarterly Consolidated Statements of Cash Flows………………………………………………………

10(4) Notes to Quarterly Consolidated Financial Statements………………………………………………….

12(Notes on Premise of Going Concern) …………………………………………………………………..

12(Significant Changes in Scope of Consolidation) ……………………………………………………….

12(Changes in Accounting Standards) …………………………………………………………………….

12(Additional Information) ……………………………………………………………………. …………

12

(Notes in Case of any Significant Changes in the Amount Shareholders’ Equity) ………….…………

12(Notes to Business Combinations) ………………………………………………………………………

13(Notes to Segment Information) ………………………………………………………………………...

14

1

1. Quarterly Qualitative Information on Business Results(1) Qualitative Information on Business Results
In the non-bank industry surrounding the Group, the number of new contracts and the balance of operating loans outstanding
in the consumer finance business have continued to increase against a backdrop of brisk capital needs. Although the status ofinterest repayment claims is susceptible to changes in the external environment and certain considerations are necessary, thenumber of claims is steadily decreasing.
Under these circumstances, AIFUL Group has formulated a 3-year Medium-term Management Plan with the fiscal year
ending March 2027 as the final year, based on our 10-year long-term vision "Transformation Towards an IT COMPANY:
Aiming to Become a Company that Lasts 100 Years." Under the theme of the Medium-term Management Plan "Try Harder:
Toward a New Stage of Growth," the Group will strive to raise the group’s profit level by pursuing growth of the balances incore businesses such as the loan business, the credit guarantee business and the credit business, and reforming its cost structure.
In addition, we will invest in high-growth businesses and М&A to achieve increased corporate value as we move toward a newstage of growth.
FPC Co., Ltd., a non-consolidated subsidiary to which the equity method was applied until the previous fiscal year, became aconsolidated subsidiary from the first quarter of the current fiscal year due to an increase in its materiality. In addition, in the firstquarter of the current fiscal year, the Company acquired shares of BitCash Inc. on June 28, 2024, making it a consolidated
subsidiary. For BitCash Inc., only the balance sheet is consolidated in the first quarter of the current fiscal year because thedeemed acquisition date was June 30, 2024.

(Overview of the Results)
During the three months ended June 30, 2024, AIFUL Group’s operating revenue amounted to 44,629 million yen (up 15.4 %year on year). The principal components were 25,699 million yen in interest on loans receivable (up 13.8 % year on year), 5,416
million yen in revenue from the credit card business (up 2.5 % year on year) and 5,095 million yen in revenue from the credit
guarantee business (up 8.7 % year on year). Operating expenses increased 5,300 million yen, or 14.9 % year on year, to 40,857
million yen. This was mainly due to an increase of 2,513 million yen year on year in provision for doubtful accounts.
In addition, as a result of the consolidation of FPC Co., Ltd., which operates an insurance business, insurance premiums
increased 1,114 million yen and insurance claims and others increased 896 million yen.

As a result, AIFUL Group’s operating profit for the first quarter of fiscal year 2024 was 3,771 million yen (up 21.3% year onyear), and ordinary profit was 3,901 million yen (up 14.5% year on year). Profit attributable to owners of the parent was 3,722
million yen (up 25.4% year on year) as a result of posting loss attributable to non-controlling interests of 243 million yen.

The results by business segment are as follows.
(AIFUL Corporation)
Loan businessIn the loan business, the Company has worked to increase the number of new contracts and the operating loan balance byimplementing initiatives to improve UI/UX and customer satisfaction through in-house production in the digital field, such as
2

upgrading official sites and smartphone apps, in addition to an advertising strategy that emphasizes efficiency.
As a result, the number of new contracts for unsecured loans was 89,000 (up 0.7 % year on year) and the contract rate was36.2 % (up 5.1pt year on year) in the first quarter of the current fiscal year.
At the end of the first quarter of the current fiscal year, unsecured loans outstanding were 561,051 million yen (up 2.3% fromthe end of the previous fiscal year), secured loans outstanding were 1,720 million yen (down 6.3% from the end of the previous
fiscal year), small business loans outstanding were 13,111 million yen (up 4.7% from the end of the previous fiscal year), andthe total balance of operating loans in the loan segment was 575,882 million yen (up 2.3% from the end of the previous fiscal
year) (1,021 million yen off-balance sheet operating loans from the securitization have been included).

Credit guarantee businessIn the credit guarantee business, AIFUL has leveraged its credit screening know-how for individuals and small- and mediumsized enterprises as well as its unique strengths as an independent entity to increase the credit guarantee balance by promoting
the diversification of credit guarantee products and increasing the number of guarantee partners.
As a result, loans outstanding for personal loan guarantee at the end of the first quarter of the current fiscal year was 165,953
million yen (up 2.3% from the end of the previous fiscal year), and loans outstanding for business loan guarantee was 58,835
million yen (up 4.7 % from the end of the previous fiscal year).
Of the credit guarantee for the business loans, 1,276 million yen comes from guarantees provided to AG BUSINESSSUPPORT CORPORATION.

As a result of the above, in the first quarter of the current fiscal year, AIFUL posted operating revenue of 26,474 million yen(up 5.8% year on year), operating profit of 3,156 million yen (down 7.5% year on year), ordinary profit of 4,335 million yen(up 2.1% year on year), and profit of 4,036 million yen (up 1.1% year on year).
(LIFECARD Co., Ltd.)
Credit card businessIn the credit card business, LIFECARD has worked to acquire new members and increase active cardholders by expanding
the design of Gold Cards, adding app functions to meet customer needs and developing new acquisition sales channels.
As a result, the transaction volume for the first quarter of the current fiscal year was 188,954 million yen (up 4.0% year onyear), and the balance of installment receivables for credit card business at the end of the first quarter of the current fiscal year
was 109,940 million yen (down 1.6 % from the end of the previous fiscal year) (5,978 million yen off-balance sheet operatingloans from the securitization have been included).
Card Cashing
The total amount of loans outstanding at the end of the first quarter of the current fiscal year in LIFECARD’s loan business
was 22,431 million yen (down 1.2% from the end of the previous fiscal year) (1,734 million yen off-balance sheet operatingloans from the securitization have been included).

Credit guarantee businessIn the credit guarantee business, LIFECARD leveraged its credit screening know-how for individuals and small- and3

medium-sized enterprises as well as its unique strengths as an independent entity to increase the credit guarantee balance bypromoting the diversification of credit guarantee products and increasing the number of guarantee partners.
As a result, loans outstanding for personal loan guarantee at the end of the first quarter of the current fiscal year was 27,964
million yen (down 0.2 % from the end of the previous fiscal year), and loans outstanding for business loan guarantee was 1,590
million yen (up 3.7 % from the end of the previous fiscal year).

As a result of the above, LIFECARD Co., Ltd. recorded operating revenue of 9,510 million yen (up 2.0% year on year),
operating profit of 179 million yen (down 50.2% year on year), ordinary profit of 199 million yen (down 48.1% year on year),and profit of 429 million yen (up 60.7% year on year).

(Other)Eight consolidated subsidiaries (AIRA & AIFUL Public Company Limited, AG BUSINESS SUPPORT CORPORATION,
AG Loan Services Corporation, AG Capital Co., Ltd., AG Payment Service CO.,LTD, AG Medical Corporation, FPC Co., Ltd.
and BitCash Inc.) which are not included in reportable segments for the first quarter of the current fiscal year, posted operating
revenue of 8,761 million yen (up 50.5% year on year), operating loss of 322 million yen (compared with operating profit of 201
million yen in the previous fiscal year), ordinary loss of 312 million yen (compared with ordinary profit of 206 million yen in
the previous fiscal year), and net loss of 334 million yen (compared with net loss of 152 million yen in the previous fiscal year).
In addition, as a result of the consolidation of FPC Co., Ltd., which operates an insurance business, insurance premiums
increased 1,114 million yen and insurance claims and others increased 896 million yen.

(Financial Position)
Assets at the end of the first quarter of the current fiscal year increased by 63,556 million yen from the end of the previous
fiscal year to 1,329,930 million yen (up 5.0% from the end of the previous fiscal year). This was primarily due to an increase of
22,572 million yen in operating loans and an increase of 5,931 million yen in installment receivables.
Liabilities increased by 61,971 million yen to 1,126,933 million yen (up 5.8% from the end of the previous fiscal year). Thiswas primarily due to an increase in funding through borrowings from financial institutions, etc.
Net assets increased by 1,585 million yen to 202,997 million yen (up 0.8% from the end of the previous fiscal year). The
increase was mainly attributable to an increase in financing-related transactions due to borrowings from financial institutions.

(2) Overview of Cash Flows for the first quarter of fiscal year 2024
Cash and cash equivalents (hereinafter referred to as "funds") at the end of the first quarter of the current fiscal year
increased by 3,992 million yen from the end of the previous fiscal year to 55,927 million yen (up 7.7 % from the end of theprevious fiscal year). The situation of each category of cash flow for the first quarter of the current fiscal year and thecontributing factors are as follows.

(Cash flows from operating activities)
Net cash used for operating activities amounted to 37,965 million yen, an increase of 51.8 % year on year. This was mainly
due to a decline in funds reflecting an increase in operating loans and installment receivables.

4

(Cash flows from investing activities)
Net cash used for investing activities amounted to 10,620 million yen, an increase of 367.2% year on year. This was mainly
due to purchase of shares of subsidiaries resulting in a change in scope of consolidation.
(Cash flow from financing activities)
Net cash provided by financing activities amounted to 50,467 million yen, an increase of 29.6% year on year. This was
mainly due to proceeds from borrowings exceeding repayments.

(3) Qualitative Information on the Forecasts for the Consolidated Business Results
The Group’s earnings forecast for the fiscal year ending March 31, 2025 remains unchanged from the earnings forecast
announced on May 10, 2024. However, these forecasts are based on information available as of the date of publication of thesematerials. There are various risks in the current business environment surrounding us, and the final results may differ from theforecasts.

2. Critical Contracts for Operation
Critical contracts for operation during the first quarter of the current fiscal year under review are as follows.
The Company entered into an agreement to acquire 100% of shares of BitCash Inc. on June 11, 2024 and acquired the shareson June 28, 2024. The details are described in "3. Quarterly Consolidated Financial Statements and Notes (4) Notes to Quarterly
Consolidated Financial Statements (Notes to Business Combinations)."5

3. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Operating loans
Accounts receivables - installment
Operational investment securities
Customers’ liabilities for acceptances and guarantees
Other operating receivables
Purchased receivables
Accrued receivables
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investment and other assets
Total non-current assets
Total assets

6

As of June 30, 2024

56,917709,137
167,753
2,989
256,096
16,573
8,380
23,57028,181(79,021)
1,190,579

60,613
731,709
173,685
3,105
262,407
17,316
8,567
36,20327,933(80,656)
1,240,885

17,092

16,982―
14,34914,34944,35375,794
1,266,374

12,141
16,31528,45743,60589,044
1,329,930

(Millions of yen)
As of March 31, 2024
Liabilities
Current liabilities
Notes & accounts payable-trade
Acceptances and guarantees
Short-term borrowings
Short-term loans payable to subsidiaries and associates
Commercial papers
Current portion of bonds
Current portion of long-term borrowings
Income taxes payable
Reserves
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Provision for loss on interest repayment
Policy reserves and others
Other
Total non-current liabilities
Total liabilities
Net Assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

As of June 30, 2024

68,069256,096
101,627959―
30,000233,660
3,871
1,730
51,581
747,598

69,908262,407
103,118
974
31,200―237,975
810
949
55,687763,03150,000248,657
11,760―6,946
317,364
1,064,962

80,000264,156
10,784
2,100
6,861
363,902
1,126,933

94,02814,017
90,345(2,655)
195,735

94,02814,017
93,583(3,971)
197,658

1,283
890
2,174
3,502
201,412
1,266,374

1,137
916
2,054
3,284
202,997
1,329,930

(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
i. Quarterly Consolidated Statements of Income
Three months ended June 30(Millions of yen)Three months ended Jun 30, 2023 Three months ended Jun 30, 2024
(Apr 1, 2023 to Jun 30, 2023)(Apr 1, 2024 to Jun 30, 2024)
Operating revenue
Interest on loans receivable

22,58425,699

Revenue from credit card business

5,284

5,416

Revenue from installment sales

920

1,636

Revenue from credit guarantee

4,687

5,095

Other financial revenue

1

6

―

1,114

Other operating revenue

5,187

5,661

Total operating revenue

38,66544,629

1,761

2,259

20

128

Insurance premiums

Operating expenses
Financial expenses
Cost of sales―

896

Other operating expenses

33,77537,573

Total operating expenses

35,55740,857

3,108

3,771

20

5

Insurance claims and others

Operating profit
Non-operating income
Dividend income
Share of profit of entities accounted for using equity method―0Foreign exchange gains

326

72

Other

47

56

Total non-operating income

394

135

Provision for doubtful accounts

10

1

Share of loss of entities accounted for using equity method

75

―

Other

7

4

Total non-operating expenses

93

5

Ordinary profit

3,408

3,901

Profit before income taxes

3,408

3,901

Income taxes – current

57

410

Income taxes – deferred

292

12

Non-operating expenses

Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

8

350

422

3,058

3,478

89

(243)

2,968

3,722

ii. Quarterly Consolidated Statements of Comprehensive Income
Three months ended June 30(Millions of yen)Three months ended Jun 30, 2023 Three months ended Jun 30, 2024
(Apr 1, 2023 to Jun 30, 2023)(Apr 1, 2024 to Jun 30, 2024)
ProfitOther Comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests

9

3,058

3,478

(40)
202

(145)
51

0

0

161
3,220

(93)
3,384

3,028
191

3,602
(217)

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Three months ended Jun 30, 2023 Three months ended Jun 30, 2024
(Apr 1, 2023 to Jun 30, 2023)(Apr 1, 2024 to Jun 30, 2024)
Cash flows from operating activities
Profit before income taxes

3,408

3,901

Depreciation

888

995

Amortization of goodwill―

55

Increase (decrease) in policy reserves and others―

46

Increase (decrease) in allowance for doubtful accounts

(263)

1,122

Increase (decrease) in provision for bonuses

(727)

(823)

Increase (decrease) in provision for share-based remuneration

8

17

Increase (decrease) in allowance for loss on interest repayment(1,785)(976)Interest and dividend income

(26)

(17)

Decrease (increase) in foreign exchange gains

(323)

59

75

(0)

Decrease (increase) in operating loans receivable(19,940)(22,314)

Decrease (increase) in accounts receivable – installment(5,289)(5,931)

Share of loss (profit) of entities accounted for using equity method

Decrease (increase) in other operating receivable

(624)

(743)

Decrease (increase) in accrued receivables(528)(8,546)

Decrease (increase) in purchased receivable

145

(187)

Decrease (increase) in claims provable in bankruptcy

1,372

461

Decrease (increase) in business guarantee deposits, etc.

(41)

―

Decrease (increase) in other current assets

705

344

Increase (decrease) in other current liabilities(859)(2,042)

Other

305

(317)

(23,502)(34,896)

Subtotal

46

37

Income taxes paid

(1,560)(3,106)

Cash flow from operating activities(25,015)(37,965)

Payments into time deposits(4,920)(4,652)

Proceeds from withdrawal of time deposits

4,910

4,949

Purchase of property, plant and equipment

(266)

(139)

(1,385)(2,854)

―

(469)

―

(6,759)

(610)

(695)

(2,273)(10,620)

Interest and dividend income

Cash flows from investing activities

Purchase of intangible assets
Purchase of investment securities
Purchase of shares of subsidiaries resulting in a change in scope of
consolidation
Other
Cash flows from investing activities

10

(Millions of yen)Three months ended Jun 30, 2023 Three months ended Jun 30, 2024
(Apr 1, 2023 to Jun 30, 2023)(Apr 1, 2024 to Jun 30, 2024)
Cash flows from financing activities
Proceeds from short-term borrowings

341,692

604,249

Repayments of short-term borrowings(335,706)(602,830)

Proceeds from issuance of commercial papers

57,60061,600

Redemption of commercial papers(45,400)(30,400)

Proceeds from long-term loans payable

59,42988,700

Repayments of long-term loans payable(52,893)(68,918)

Proceeds from issuance of bonds

15,00030,000

Redemption of bonds―(30,000)

Cash dividends paid

(483)

(483)

―

(1,315)

Other

(287)

(133)

Cash flows from financing activities

38,95150,46722

26

Net increase (decrease) in cash and cash equivalents

11,684

1,906

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiaries

37,88551,934―

2,086

Cash and cash equivalents at end of period

49,57055,927Purchase of treasury stock

Effect of exchange rate changes on cash and cash equivalents11(4) Notes to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Significant Changes in Scope of Consolidation)
FPC Co., Ltd., a non-consolidated subsidiary to which the equity method was applied until the previous fiscal year, became
a consolidated subsidiary from the first quarter of the current fiscal year due to an increase in its materiality. In addition, in
the first quarter of the current fiscal year, the Company acquired shares of BitCash Inc. on June 28, 2024, made it aconsolidated subsidiary. For BitCash Inc., only the balance sheet is consolidated in the first quarter of the current fiscal
year because the deemed acquisition date was June 30, 2024.
(Changes in Accounting Standards)(Application of Accounting Standard for Current Income Taxes)
Effective from the beginning of the first quarter of the current fiscal year, the Company has applied "Accounting Standard
for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022; hereinafter referred to as the "Revised AccountingStandard 2022").
As a result, the Company has changed the classification of income taxes to be charged on other comprehensive income
and the treatment of tax effects related to the sale of shares of subsidiaries when the corporate group tax system is applied.
In addition, with regard to revisions related to the classification of income taxes (taxation on other comprehensive
income), the Company follows the transitional treatment in the proviso of Paragraph 20-3 of the Revised AccountingStandard 2022 and the transitional treatment in Paragraph 65-2 (2) of the "Guidance on Accounting Standard for Tax EffectAccounting" (ASBJ Guidance No. 28, October 28, 2022).
There are no impacts on the consolidated financial statements for the first quarter of the fiscal year under review.
(Additional Information)(Significant Accounting Policies for Preparation of Consolidated Financial Statements)
Accounting Policies
i) Goodwill amortization method and amortization period
The straight-line method is applied over a certain number of years within 20 years. However, if the amount of goodwill
is immaterial, it is treated as an expense in the consolidated fiscal year in which the goodwill arises.
ii) Policy reserve accumulation method
Policy reserves, which account for the majority of policy reserves and others, are reserves based on Article 116 of the
Insurance Business Act and are calculated in accordance with Article 211-46, paragraph 1 of the Regulation for
Enforcement of the Insurance Business Act.
(Notes in Case of any Significant Changes in the Amount Shareholders’ Equity)
Three months ended June 30, 2023 (Apr 1, 2023 to Jun 30, 2023)
1. Dividends paid
Total dividends
Resolution

Dividend perClass of shares

Source ofRecord date(Millions of yen)

share

483

1.00

Effective datedividends

Board ofDirectors

Retained
Common stock

meeting held on

March 31, 2023

June 8, 2023
earnings

April 24, 2023

12

2. Dividends whose record date is in the three months ended June 30, 2023 but whose effective date is after June 30,
2023
Not applicableThree months ended June 30, 2024 (Apr 1, 2024 to Jun 30, 2024)
1. Dividends paid
Total dividends
Resolution

Dividend perClass of shares

Source ofRecord date(Millions of yen)

share

483

1.00

Effective datedividends

Board ofDirectors

Retained
Common stock

March 31, 2024

June 6, 2024

meeting held on

earnings

May 10, 2024

2. Dividends whose record date is in the three months ended June 30, 2024 but whose effective date is after June 30,
2024
Not applicable

3. Significant Changes in the Amount of Shareholders' Equity(Repurchase of own shares)
The Company repurchased 3,373,900 shares during the three months ended June 30, 2024, in accordance with a resolution of
the Board of Directors meeting held on May 27, 2024. As a result, treasury stock increased by 1,315 million yen.
(Notes to Business Combinations)
Business combination through acquisition of shares
1. Outline of business combinationi) Name and business of the acquired company
Name of acquired company: BitCash Inc.
Business: Issuance of prepaid electronic money, electronic payment service using electronic moneyii) Main reasons for business combination
BitCash Inc. is a fee-based business that does not require funds and the Company aims to increase revenue by
expanding its share in the payments market, which has high profit margin.
iii) Date of business combination
June 28, 2024 (Share acquisition date)June 30, 2024 (Deemed acquisition date)iv) Legal form of business combination
Acquisition of sharesv) Corporate name following combination
No change.
vi) Percentage of voting rights acquired
100.0%
vii) Main rationale for determining the company to acquireThis is due to the Company acquiring shares in exchange for cash.

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2. Period of the acquired company’s results included in the quarterly consolidated statements of income for the
consolidated cumulative quarter
As the deemed acquisition date is June 30, 2024, only the balance sheet is consolidated, and the results of the acquiredcompany are not included in the quarterly consolidated statements of income for the first quarter of the current fiscal
year.
3. Acquisition cost of the acquired company and breakdown by type of consideration
Consideration for acquisitionCash¥9,200 million

Acquisition cost

¥9,200 million

4. Amount of goodwill incurred, reason for incurrence, amortization method and amortization periodi) Amount of goodwill incurred: ¥9,101 million
As the allocation of the acquisition cost has not been completed, the amount of goodwill is provisional.
ii) Reason for incurrenceThis is mainly the excess earnings power expected from future business development.
iii) Goodwill amortization method and amortization period
Goodwill is amortized on a straight-line basis over the period in which it is effective. The amortization period isunder calculation.
(Notes to Segment Information)
Segment Information
Three months ended June 30, 2023 (Apr 1, 2023 to Jun 30, 2023)
1. Information related to operating revenue and profit or loss of each reporting segment(Millions of yen)
Reporting segment
AIFUL

LIFECARD

Subtotal

Other*1

Total

Operating revenue
Operating revenue from third parties

23,606

9,253

32,8595,806

38,665Inter-segment sales and transfers

1,418

69

1,487

16

1,504

25,025

9,322

34,347

5,822

40,170

3,991

267

4,259

(152)

4,106

Total
Segment profit (loss)*1. The “other” classification comprises business segments not included in reporting segments and encompasses the activities of AG
BUSINESS SUPPORT CORPORATION and AG Loan Services Corporation, etc.

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2. Difference between the total amount of profit of reportable segments and the amount recorded in the consolidated
financial statements and the main details of such difference (matters concerning difference adjustment)(Millions of yen)
ProfitAmountReporting segment total

4,259

Profit categorized as “other”(152)

Inter-segment eliminations

15

Other adjustments(1,154)

Profit attributable to owners of parent posted inconsolidated financial statements

2,968

Three months ended June 30, 2024 (Apr 1, 2024 to Jun 30, 2024)
1. Information related to operating revenue and profit or loss of each reporting segment(Millions of yen)
Reporting segment
AIFUL

LIFECARD

Subtotal

Other*1

Total

Operating revenue
Operating revenue from third parties

26,461

9,421

35,882

8,746

44,629

13

88

101

15

117

26,4749,510

35,984

8,761

44,746

4,036

429

4,466

(334)

4,131

Inter-segment sales and transfers
Total
Segment profit (loss)*1. The “other” classification comprises business segments not included in reporting segments and encompasses the activities of AG
BUSINESS SUPPORT CORPORATION and AG Loan Services Corporation, etc.

2. Difference between the total amount of profit of reportable segments and the amount recorded in the consolidated
financial statements and the main details of such difference (matters concerning difference adjustment)(Millions of yen)
ProfitAmountReporting segment total

4,466

Profit categorized as “other”(334)

Inter-segment eliminations(368)

Other adjustments(40)

Profit attributable to owners of parent posted inconsolidated financial statements

3,722

3. Information related to impairment loss on non-current assets or goodwill of each reporting segment(Significant changes in the amount of goodwill)
Goodwill increased by 12,141 million yen due to inclusion of FPC Co., Ltd. and BitCash Inc. in the scope of
consolidation in the first quarter under review.
The amount of goodwill for which the allocation of acquisition cost has not been completed is calculated on aprovisional basis.

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