(Translation for reference only)

May 11, 2023

Consolidated Financial Results

For the Fiscal Year ended in March 31, 2023 (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:

Toshiaki Ando, Assistant Senior General Manager of Finance Division TEL (03) 4503 - 6050

Scheduled date of annual general meeting of shareholders: June 27, 2023

Scheduled date of submission of Securities report: June 28, 2023

Scheduled date of commencement of dividend payments : June 8, 2023

Supplementary materials for financial results: Yes

Earnings release conference: Yes (For financial analysts and institutional investors)

I. Consolidated Financial Results for the Fiscal Year ended in March 31, 2023

(April 1, 2022 - March 31, 2023)

(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

Fiscal year ended

March 31, 2023

144,152

9.1%

23,724

111.0%

24,428

99.2%

22,343

81.1%

March 31, 2022

132,097

3.6%

11,242

(35.9)%

12,265

(36.5)%

12,334

(33.1)%

Note:

Comprehensive income: For the Fiscal year ended

March 31, 2023:

23,550 million yen

90.5%

March 31, 2022:

12,363 million yen

(34.1)%

Net Income per

Diluted Net

Profit to

Ordinary Profit to

Operating Profit to

Income per Share

Shareholders'

Total Assets Ratio

Operating Revenue

Share (Yen)

(Yen)

Equity Ratio (%)

(%)

Ratio (%)

Fiscal year ended

March 31, 2023

46.19

-

13.5

2.4

16.5

March 31, 2022

25.50

-

8.2

1.4

8.5

Reference: Equity in earnings of affiliated companies: For the Fiscal year ended

March 31, 2023:

184 million yen

March 31, 2022:

150 million yen

2. Consolidated Financial Position

Total Assets

Net Assets

Shareholders' Equity

Net Assets per Share

Ratio (%)

(Yen)

As of

March 31, 2023

1,070,485

179,593

16.4

364.01

March 31, 2022

935,642

156,526

16.4

318.17

Reference:

Shareholders' equity:

As of March 31, 2023:

176,072 million yen

As of March 31, 2022:

153,900 million yen

3. Consolidated Cash Flows

(Millions of yen)

Cash Flow from

Cash Flow from

Cash Flow from

Cash and Cash

Equivalents at the End

Operating Activities

Investing Activities

Financing Activities

of Period

Fiscal year ended

March 31, 2023

(70,589)

(8,947)

78,195

37,885

March 31, 2022

(15,628)

(2,218)

21,028

39,147

II. Dividend Information

Dividend per share (Yen)

Total dividend

Payout

Dividend to

End of

End of

End of

Year-end

Annual

payment

Ratio %

equity ratio %

1st quarter

2nd quarter

3rd quarter

(full year)

(Consolidated)

(Consolidated)

FY ended March 31, 2022

-

0.00

－

1.00

1.00

483

3.9

0.3

FY ended March 31, 2023

-

0.00

－

1.00

1.00

483

2.2

0.3

FY ending March 31, 2024

-

0.00

-

1.00

1.00

2.1

(Forecast)

  1. Consolidated Earnings Forecast for the Fiscal Year ending March 31, 2024
    (April 1, 2023 - March 31, 2024)

(Millions of yen, Percentages indicate year-on-year changes)

Operating Revenue

Operating Profit

Ordinary Profit

Profit Attributable to

Profit per

Owners of Parent

Share (Yen)

Six months ending

77,700

10.4%

7,600

(37.5)%

7,600

(39.9)%

7,100

(39.7)%

14.68

September 30, 2023

Fiscal year ending

161,200

11.8%

25,200

6.2%

25,500

4.4%

22,600

1.1%

46.72

March 31, 2024

*Notes

(1) Changes in significant subsidiaries during the period

(Changes in specified subsidiaries resulting changes in scope of consolidation): None

  1. Changes in accounting principles, procedures and methods of presentation
    1. Changes accompanying amendments to accounting standards: Yes
    2. Changes other than those in (a): None
    3. Change in accounting estimates: Yes
    4. Restatement: None

Note: For details, please refer to "Notes to Consolidated Financial Statements (Changes in Accounting Standards)" on page 16 of [Appendix]

(3) Number of shares issued (Common stock)

(a) Number of shares issued at the end of the period

FY2022

484,620,136 shares

FY2021

484,620,136 shares

(including treasury stock)

(b) Number of treasury stock at the end of the period

FY2022

917,614 shares

FY2021

917,470 shares

(c) Average number of shares during the period

FY2022

483,702,593 shares

FY2021

483,702,666 shares

(Reference) Highlights of Non-Consolidated Business Results

  1. Non-ConsolidatedBusiness Results for the Fiscal Year ended in March 31, 2023 (April 1, 2022 - March 31, 2023)

1. Non-Consolidated Operating Results

(In millions of yen, except where noted; percentage figures show year-on-year changes)

Operating Revenue

Operating Profit

Ordinary Profit

Profit

Fiscal year ended

March 31, 2023

88,449

6.4%

19,127

302.1%

32,213

377.4%

31,028

292.2 %

March 31, 2022

83,117

5.4%

4,757

(54.6)%

6,748

(43.6)%

7,912

(17.4) %

Profit per Share (Yen)

Diluted Profit per

Share (Yen)

Fiscal year ended

March 31, 2023

64.15

－

March 31, 2022

16.36

－

2. Non-Consolidated Financial Position

(In millions of yen, except where noted)

Total Assets

Net Assets

Shareholders' Equity

Net Assets per Share

Ratio (%)

(Yen)

As of

March 31, 2023

834,868

140,660

16.8

290.80

March 31, 2022

711,185

110,096

15.5

227.61

Reference: Shareholders' equity:

As of March 31, 2023

140,660 million yen

As of March 31, 2022

110,096 million yen

  1. Non-ConsolidatedEarnings Forecast for the Fiscal Year ending March 31, 2024 (April 1, 2023 - March 31, 2024):

(In millions of yen, except where noted; percentage figures show year-on-year change.)

Operating Revenue

Operating Profit

Ordinary Profit

Profit

Profit per

Share (Yen)

Six months ending

48,800

11.7%

7,100

(25.8)%

8,100

(62.2)%

7,800

(62.1)%

16.13

September 30, 2023

Fiscal year ending

99,100

12.0%

21,500

12.4%

23,800

(26.1)%

22,200

(28.5)%

45.90

March 31, 2024

  • Note: Brief Statement of financial results is not subject to audit procedures that are conducted by a certified public accountant or an audit corporation.
  • 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 as well 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. Business Results and Other, (4) Outlook for the fiscal year ending March 2024" on page 5.

Contents

1. Business Results and Others…………………………………………………………………………………

02

(1)

Overview of Business Results for the Current Fiscal Year ……………………………………...………

02

(2)

Overview of Financial Position for the Current Fiscal Year………………………………………..……

04

(3)

Overview of Cash Flows for the Current Fiscal Year…………..……………………………………..…

05

(4)

Outlook for the fiscal year ending March 2023……………………………………………………….…

05

  1. Basic Policies on Profit Distribution and Dividend for the Current Fiscal Year and Next Fiscal
    Year……………………………………………………………………………………………………… 05

2. Basic Stance on Selection of Accounting Standards………………………………………………………...

06

3. Consolidated Financial Statements………………………………………………………………………….. 07

(1) Consolidated Balance Sheets……………………………………………………………………………. 07

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…………

09

(3) Consolidated Statements of Change in Shareholders' Equity……………………………………………

12

(4) Consolidated Statements of Cash Flows……………………………………………………………

14

(5) Notes to Consolidated Financial Statements……………………………………………………………..

16

Notes on Premise of Going Concern……………………………………………………………………...

16

Change in scope of consolidation…………..…………………………………………………………...

16

Changes in Accounting Standards………………………………………………………………………...

16

Changes in Accounting Estimates ………………………………..……………………………………….

16

Notes to Consolidated Balance Sheets…………………………………………………………………….

17

Notes to Segment Information……………………………………………………………………………. 21

Per Share Information…………………………………………………………………………………….. 24

Important Subsequent Events…………………………………………………………………………….. 24

4. Non-Consolidated Financial Statements…………………………………………………..…………………

25

(1)

Non-Consolidated Balance Sheets…………………………..…….…………………..…………………

25

(2)

Non-Consolidated Statements of Income…………………………………………...…………………… 28

(3)

Non-Consolidated Statements of Change in Shareholders' Equity………………………………………

29

1

1. Business Results and Others

(1) Overview of Business Results for the Current Fiscal Year

During the consolidated fiscal year under review, there were signs of a recovery in socioeconomic activities due to the relaxation of activity restrictions for countermeasures against COVID-19. However, the outlook remains uncertain, due to concerns about rising interest rates after the decision to raise long-term interest rates at the Bank of Japan's Monetary Policy Meeting, price increases against the backdrop of soaring energy and raw material prices caused by the situation in Ukrainian, and the economic slowdown associated with them.

The consumer finance industry's recovery trend continued as the number of new contracts at major companies increased year-on-year. In addition, although interest repayment claims have been steadily decreasing, it still requires close monitoring as it is easily affected by changes in the external environment.

Under these circumstances, AIFUL Group will work to increase the number of new contracts and improve costs by simplifying its organization and products to streamline operations and pursue UI/UX from customer's perspective, as well as by effectively and efficiently investing in advertising.

In addition, in order to grow as an IT financial group, we will strengthen our investment in IT human resources and work on data analysis and in-house production of systems using digital technology, while striving to expand assets by balancing "growth potential" and "profitability" and to make appropriate use of management resources to maximize consolidated profits.

For more than 50 years since its founding, AIFUL Group has used a heart mark, which symbolizes the sense of security and integrity as a corporate symbol. However, in order to upgrade the image to suit a corporate stance that provides new value in the future for the next 50 or 100 years, the Group has revamped its visual identity (VI) and began using a new art symbol and corporate logo on July 7, 2022.

The results by business segment are as follows.

Sumishin Life Card Co., Ltd., previously included in "Other," was extinguished on April 1, 2022, as a result of an absorption-type merger with LIFECARD CO., LTD., a reportable segment, as the surviving company. The following comparisons with the previous fiscal year have been made by reclassifying the previous fiscal year's figures into the revised segment classification.

(AIFUL Corporation)

Loan business

In the loan business, in addition to effective advertising strategies mainly on TV commercials and web, the Company is working to increase the number of new contracts and the operating loan balance by implementing initiatives to improve UI/UX, such as upgrading official sites, smartphone apps, and application forms.

As a result, the number of new contracts for unsecured loans was 301,000 (up 43.4% year on year) and the contract rate was 31.9% (down 1.0pt year on year) in the fiscal year under review.

At the end of the fiscal year under review, unsecured loans outstanding were 490,096 million yen (up 9.0% year on year), secured loans outstanding were 2,502 million yen (down 28.5% year on year), small business loans outstanding were 10,275 million yen (up 19.0% year on year), and the total balance of operating loans in the loan segment was 502,874 million yen (up 8.9% year on year) (7,427 million yen off-balance sheet operating loans from the securitization have been included).

2

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aiful Corporation published this content on 11 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2023 02:43:08 UTC.