Aiful : Announcement of third quarter financial results for the FY ending March 31, 2022

(Translation for reference only)

February 9, 2022

Consolidated Financial Results for the Third Quarter of Fiscal Year 2021

For the Nine Months Ended December 31, 2021

(Under Japanese GAAP)

Scheduled date of submission of Quarterly Securities Report: February 10, 2022

Scheduled date of commencement of dividend payments : －

Supplementary materials for Quarterly Financial results: Yes

Quarterly earnings release conference: None

I. Consolidated Financial Results for the Third Quarter of Fiscal Year 2021

(April 1, 2021 - December 31, 2021)

(Amounts less than one million yen have been rounded down)

1. Consolidated Operating Results

2. Consolidated Financial Position

Note: The Company has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the beginning of the first quarter of the current fiscal year.

1. Quarterly Qualitative Information on Business Results

The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020; hereinafter the "Accounting Standard for Revenue Recognition") and other standards from the beginning of the first quarter of the current fiscal year, which have affected its financial position and results of operations.

For details, please refer to "2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)."

(1) Qualitative Information on Business Results

During the nine months ended December 31, 2021, the Japanese economy is heading toward a gradual recovery due to the popularization of vaccines and progress in immunization, and the low number of new cases of COVID-19.

The consumer finance industry is also steadily improving, as seen in the year-on-year increase in the number of new contracts at major companies.

Going forward, we will continue to closely monitor the situation, such as the re-expansion of COVID-19. Nevertheless, AIFUL Group will strive to expand earnings by utilizing Group resources and to expand highly secure assets through data analytics, while responding to requests for interest repayment, one of the management issues.

In addition, in order to realize the management theme of "achieving growth as an IT finance group through organizational and institutional reforms in response to changes in the environment and the utilization of digital technologies," the Group will focus on "diversification of business portfolio" such as business diversification and strengthening of overseas businesses, and "utilization of digital technologies" such as IT technology analysis and in-house production of systems.

(Overview of the results)

In the first nine months of the current fiscal year, AIFUL group's operating revenues were 98,492 million yen (up 2.7% year- on-year).The principal components were 57,040 million yen in interest on operating loans (up 2.4% year on year), 13,870 million yen in revenue from credit card business (down 1.9% year on year) and 11,743 million yen in revenue from credit guarantee (up 7.2% year on year).

Operating expenses decreased by 371 million yen, or 0.5%, compared with the corresponding period of the previous fiscal year, to 79,889 million yen. This was mainly due to a decrease in provision for allowance for doubtful accounts.

As a result, in the first nine months of the current fiscal year, AIFUL Group posted operating profit of 18,602 million yen (up 19.2% year on year) and ordinary profit of 18,963 million yen (up 11.8% year on year). In addition, profit attributable to owners of the parent was 18,161 million yen (up 12.4% year on year) reflecting a profit attributable to non-controlling interests of 69 million yen.

Due to the adoption of the revenue recognition accounting standards, operating revenue increased by 65 million yen, operating expenses decreased by 80 million yen, operating profit increased by 145 million yen, and ordinary profit increased by 178 million yen.

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(2) Qualitative Information on the Forecasts for the Consolidated Business Results

The earning forecast for the full fiscal year ending March 31, 2022 has not been changed from the forecast announced on November 10, 2021.

The forecast is based on information available as of the date of publication of these materials. There are various risks in the current business environment surrounding us, and the actual results may differ from the forecasts.

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