(Translation for reference only)

August 10, 2023

Consolidated Financial Results for the First Quarter of Fiscal Year 2023

For the Three Months Ended June 30, 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 submission of Quarterly Securities Report: August 14, 2023

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 First Quarter of Fiscal Year 2023

(April 1, 2023 - June 30, 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

Three months ended

June 30, 2023

38,665

11.5%

3,108

(53.0)%

3,408

(49.2)%

2,968

(50.1)%

June 30, 2022

34,692

7.3%

6,609

15.8%

6,714

17.5%

5,945

18.6%

Note:

Comprehensive income: For the three months ended

June 30,

2023:

3,220 million yen

(49.3)%

June 30, 2022:

6,354 million yen

19.7%

Net Income per Share

Diluted Net Income per

(Yen)

Share (Yen)

Three months ended

June 30, 2023

6.14

-

June 30, 2022

12.29

-

2. Consolidated Financial Position

Total Assets

Net Assets

Shareholders' Equity

Ratio (%)

As of

June 30, 2023

1,115,863

182,329

16.0

March 31, 2023

1,070,485

179,593

16.4

Reference:

Shareholders' equity:

As of June 30, 2023:

178,617 million yen

As of March 31, 2023:

176,072 million yen

II. Dividend Information

Dividend per share (Yen)

End of

End of

End of

Year-end

Annual

1st quarter

2nd quarter

3rd quarter

FY ended March 31, 2023

-

0.00

-

1.00

1.00

FY ending March 31, 2024

-

FY ending March 31, 2024

0.00

-

1.00

1.00

(Forecast)

Note: Revisions to dividend forecasts: None

  1. Earnings Forecast on a Consolidated Basis 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

Note: Revisions to consolidated earnings forecasts: None

IV. Other

(1) Changes in significant subsidiaries during the three months ended June 30, 2023 (Changes in specified subsidiaries resulting changes in scope of consolidation): None

(2) Adoption of special accounting methods for quarterly consolidated financial statements: None

(3) Changes in accounting policies, accounting estimates and restatements

(a) Changes in accompanying amendments to accounting standards: None

(b) Changes other than those in (a): None

(c) Change in accounting estimates: None

(d) Restatements: None

(4) Number of shares issued (Common stock)

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

FY2023 1Q

484,620,136

shares

FY2022

484,620,136 shares

(including treasury stock)

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

FY2023 1Q

917,614

shares

FY2022

917,614 shares

(c) Average number of shares during the period

FY2023 1Q

483,702,522

shares

FY2022 1Q

483,702,666 shares

* Note: Brief Statement of quarterly 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, etc.

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 "Qualitative Information on the Forecasts for the Consolidated Business Results" on page 2.

Contents

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

2

(1)

Qualitative Information on Business Results………….…………………………..…………………...………

2

(2)

Qualitative Information on the Forecasts for the Consolidated Business Results…………………………..…

2

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

3

(1)

Quarterly Consolidated Balance Sheets…………….………………………………………………………….

3

(2)

Quarterly Consolidated Statements of Income and

4

Consolidated Statements of Comprehensive Income…………………………………………………….……

(3)

Quarterly Consolidated Statements of Cash Flows…………..……………………………………………

6

(4)

Notes to Quarterly Consolidated Financial Statements ………………………….………………………

7

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

7

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

7

1

1. Quarterly Qualitative Information on Business Results

(1) Qualitative Information on Business Results

During the three months ended June 30, 2023, there were growing expectations for economic recovery due to signs of normalization of socioeconomic activities, such as the downgrading of COVID-19 to Class 5 and the recovery of inbound demand. However, the outlook remains uncertain due to concerns about the impact on the economy of the ongoing depreciation of the yen and the price hike caused by global monetary tightening.

In the consumer finance industry, the recovery trend continues, with the number of new contracts at major companies continuing to increase 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 strive to improve our earnings structure by strengthening group-wide management, improving productivity by simplifying our organizational structure and operations, and promoting effective and efficient marketing. In addition, we will seek to expand assets by balancing "growth potential" and "profitability" and optimize management resources to maximize consolidated income, while continuing to invest in IT human resources and work on insourcing products and systems.

(Overview of the results)

AIFUL Group's consolidated operating revenue for the first quarter of the fiscal year ending March 31, 2024 rose 11.5% compared with the corresponding period of the previous fiscal year, to 38,665 million yen. The principal components were 22,584 million yen in interest on loans (up 12.8 % year on year), 5,284 million yen in revenue from the credit card business (up 7.6 % year on year) and 4,687 million yen in revenue from the credit guarantee business (up 15.7 % year on year).

Operating expenses increased by 7,474 million yen, or 26.6 %, compared with the corresponding period of the previous fiscal year, to 35,557 million yen. This was mainly due to an increase in provision of allowance for doubtful accounts of 4,980 million yen.

As a result, AIFUL Group posted operating profit of 3,108 million yen (down 53.0 % year on year) and ordinary profit of 3,408 million yen (down 49.2 % year on year). Profit attributable to owners of parent stood at 2,968 million yen (down 50.1 % year on year), reflecting a profit attributable to non-controlling interests of 89 million yen.

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

The Group's earnings forecast for the fiscal year ending March 31, 2024 remains unchanged from the earnings forecast announced on May 11, 2023.

However, these forecasts are 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 final results may differ from the forecasts.

2

2. Quarterly Consolidated Financial Statements and Notes

  1. Quarterly Consolidated Balance Sheets

(Millions of yen)

As of March 31, 2023

As of June 30, 2023

Assets

Current assets

Cash and deposits

43,251

54,946

Operating loans

614,229

635,019

Accounts receivables - installment

136,559

141,848

Operational investment securities

2,540

2,625

Customers' liabilities for acceptances and guarantees

221,659

228,929

Other operating receivables

13,185

13,810

Purchased receivables

6,985

6,840

Other

34,576

34,370

Allowance for doubtful accounts

(63,040)

(64,271)

Total current assets

1,009,948

1,054,119

Non-current assets

Property, plant and equipment

16,238

16,289

Intangible assets

8,392

9,316

Investments and other assets

35,906

36,138

Total non-current assets

60,537

61,744

Total assets

1,070,485

1,115,863

Liabilities

Current liabilities

Notes & accounts payable-trade

43,066

43,074

Acceptances and guarantees

221,659

228,929

Short-term borrowings

69,582

76,370

Short-term loans payable to subsidiaries and associates

1,734

1,179

Commercial papers

12,000

24,200

Current portion of bonds

―

30,000

Current portion of long-term borrowings

183,832

193,176

Income taxes payable

2,006

217

Reserves

1,651

888

Other

37,379

36,950

Total current liabilities

572,912

634,987

Non-current liabilities

Bonds payable

45,000

30,000

Long-term borrowings

249,087

246,393

Provision for loss on interest repayment

17,383

15,597

Other

6,509

6,554

Total non-current liabilities

317,979

298,546

Total liabilities

890,892

933,533

Net Assets

Shareholders' equity

Capital stock

94,028

94,028

Capital surplus

14,017

14,017

Retained earnings

69,419

71,904

Treasury shares

(3,110)

(3,110)

Total shareholders' equity

174,354

176,839

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

1,123

1,082

Foreign currency translation adjustment

595

696

Total accumulated other comprehensive income

1,718

1,778

Non-controlling interests

3,520

3,712

Total net assets

179,593

182,329

Total liabilities and net assets

1,070,485

1,115,863

3

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aiful Corporation published this content on 10 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2023 08:25:05 UTC.