AEON Financial Service : Fiscal 2023 For the Six Months ended August 31, 2023

Contents

• Financial Results Highlights

• Priority Measures

3 Earnings and Dividend Forecasts Appendix

1 Financial Results Highlights

Summary of Financial Results

(１) First Half Performance

• Although revenues increased due to an increase in transaction volume, consolidated operating profit was ¥20.2 bn (YoY 64%) due to an increase in expenses

(2) Stock stacking

• Outstanding operating receivables steadily increased in Domestic and Global

(３) Increased expenses

• Domestic : Costs are ahead of investment in expanding customer base, including AEON Pay.
• Global : Bad debt related expenses increased over the previous year due to the impact of inflation on households.

(４) Dividend

• The interim dividend will be ¥25 per share as originally forecasted

The Highlights of the Consolidated Results

[Domestic] : Operating profit decreased due to an increase in bad debt related expenses due to an increase in the balance of loans and sales promotion expenses to expand the customer base

[Global] : Although bad debt related expenses increased, top line sales grew steadily

※As a result of the domestic business integration, the results of AEON Financial Service Co., Ltd., which had been included in the adjustment amount, are included in the domestic segment.

YoY is calculated by reorganizing the previous year's results into the changed segments.

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