Interim report
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Consolidated Financial Results for the Six Months Ended August 31, 2026 (Under Japanese GAAP) October 9, 2026 Company name AEON Financial Services Co., Ltd Stock exchange listings: Tokyo Prime Securities code 8570 URL https://www.aeonfinancial.co.jp/ Representative (Title) President and CEO (Name) Tomoharu Fukayama Inquiries (Title) Managing Executive Officer (Name) Shinichiro Nishimura Tel 03-5281-2027 Semi-annual statement filing date (as planned) October 14, 2026 Dividend payable date (as planned) November 16, 2026 Supplemental material of results： Yes Convening briefing of results ：Yes (For institutional investors and analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the six months ended August 31, 2026 (from March 1, 2026 to August 31, 2026) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Operating revenues Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % August 31, 2026 311,202 11.9 25,209 (11.0) 25,972 (11.0) 10,052 14.9 August 31, 2025 278,160 8.7 28,322 4.3 29,192 7.7 8,745 (14.4) Note: Comprehensive income For the six months ended August 31, 2026 (8,316) Millions of yen (－%) For the six months ended August 31, 2025 9,464 Millions of yen ((52.0)%) Basic earnings per share Diluted earnings per share Six months ended Yen Yen August 31, 2026 46.56 46.56 August 31, 2025 40.51 40.51 (2) Consolidated financial position Total assets Net assets Capital adequacy ratio Net assets per share As of Millions of yen Millions of yen % Yen August 31, 2026 8,314,118 606,692 5.5 2,115.33 February 28, 2026 8,313,956 625,209 5.7 2,208.77 Reference: Owner's equity As of August 31, 2026 456,676 Millions of yen As of February 28, 2026 476,838 Millions of yen 2. Cash dividends Annual dividend First quarter Second quarter Third quarter Year end Annual Yen Yen Yen Yen Yen Fiscal year ended February 28, 2026 － 25.00 － 28.00 53.00 Fiscal year ending February 28, 2027 － 25.00 Fiscal year ending February 28, 2027 (Forecast) － 28.00 53.00 Note: Revisions to the forecast of cash dividends most recently announced：None 3. Consolidated financial forecast for the fiscal year ending February 28, 2027 (from March 1, 2026 to February 28, 2027) (Percentages indicate year-on-year changes.) Operating revenues Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Fiscal year ending Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen February 28, 2027 600,000 5.4 45,000 (25.8) 45,000 (25.9) 15,000 (28.9) 69.48 Note: Revisions to the earnings forecasts most recently announced：None
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* Notes (1) Significant changes in the scope of consolidation during the period：Yes Newly included: － companies (Company name)、Excluded: 1 company (Company name) AFS Corporation Co., Ltd. Note: For details, see " (3) Notes on the Consolidated Financial Statements (Significant Changes in the Scope of Consolidation During the Interim Period)" on page 6 of the attached documents. (2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements：None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations ：None (ii) Changes in accounting policies due to other reasons ：None (iii) Changes in accounting estimates ：None (iv) Restatement ：None (4) Number of issued shares (common shares) ① Number of issued and outstanding shares at the period end (including treasury stock) As of August 31, 2026 216,010,128 shares As of February 28, 2026 216,010,128 shares ② Number of treasury stock at the period end As of August 31, 2026 120,917 shares As of February 28, 2026 125,955 shares ③ Average number of shares Six months ended August 31, 2026 215,885,752 shares Six months ended August 31, 2025 215,881,825 shares * Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. * Proper use of earnings forecasts, and other special matters (Caution Regarding Forward-Looking Statements, etc.) The earnings and dividend forecasts are based on assumptions and projections that are the basis for future outlooks and plans as of the date of this document's release, and are not intended to guarantee that they will be achieved. Actual results may differ from the forecasts due to various factors. (How to Obtain Supplementary Financial Statements) The Company provides supplementary financial statements regarding our business and earnings on our website.
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-1- Attachments Contents 1. Consolidated Financial Statements and Main Notes 2 (1) Consolidated Balance Sheet 2 (2) Consolidated Statement of Income and Comprehensive Income 4 Consolidated Statement of Income 4 Consolidated Statement of Comprehensive Income 5 (3) Notes on the Consolidated Financial Statements 6 (Notes Regarding the Going-concern Assumption) 6 (Notes Regarding Significant Changes in Shareholders’ Equity) 6 (Significant Changes in the Scope of Consolidation During the Interim Period) 6 (Segment Information) 6 (Significant Subsequent Events) 8
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-2- 1．Consolidated Financial Statements and Main Notes （１）Consolidated Balance Sheet (Millions of yen) As of February 28, 2026 As of August 31, 2026 Assets Current assets Cash and deposits 676,814 413,013 Call loans 1,396 1,230 Accounts receivable - installment 1,730,410 1,840,245 Lease receivables and investments in leases 17,712 15,459 Operating loans 1,059,226 1,043,765 Loans and bills discounted for banking business 2,840,788 3,018,857 Securities for banking business 1,097,389 1,059,969 Monetary claims bought 188,214 244,998 Money held in trust 75,228 42,087 Other 403,508 426,484 Allowance for doubtful accounts (136,658) (139,068) Total current assets 7,954,031 7,967,041 Non-current assets Property, plant and equipment 40,867 38,259 Intangible assets Goodwill 36,156 35,106 Software 153,642 144,827 Other 2,740 2,539 Total intangible assets 192,539 182,474 Investments and other assets 126,013 125,830 Total non-current assets 359,420 346,564 Deferred assets 504 513 Total assets 8,313,956 8,314,118 Liabilities Current liabilities Accounts payable - trade 392,830 411,961 Deposits for banking business 5,482,096 5,435,898 Short-term borrowings 160,808 157,419 Current portion of long-term borrowings 259,536 251,121 Current portion of bonds payable 84,124 64,030 Commercial papers 5,932 7,921 Provision for bonuses 6,262 5,693 Provision for point card certificates 1,497 978 Other provisions 124 29 Other 336,074 370,106 Total current liabilities 6,729,287 6,705,161 Non-current liabilities Reserve for insurance policy liabilities 97 116 Bonds payable 275,069 328,888 Long-term borrowings 619,634 609,133 Retirement benefit liability 1,371 1,213 Provision for loss on interest repayment 484 357 Other provisions 3,147 4,521 Deferred tax liabilities 16,190 22,135 Other 43,464 35,897 Total non-current liabilities 959,459 1,002,264 Total liabilities 7,688,746 7,707,426
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-3- (Millions of yen) As of February 28, 2026 As of August 31, 2026 Net assets Shareholders' equity Share capital 45,698 45,698 Capital surplus 118,588 118,519 Retained earnings 299,951 303,951 Treasury shares (321) (308) Total shareholders' equity 463,916 467,860 Accumulated other comprehensive income Valuation difference on available-for-sale securities (69,484) (112,214) Deferred gains or losses on hedges 21,702 41,540 Foreign currency translation adjustment 60,207 58,995 Remeasurements of defined benefit plans 497 494 Total accumulated other comprehensive income 12,922 (11,183) Share acquisition rights 4 7 Non-controlling interests 148,365 150,007 Total net assets 625,209 606,692 Total liabilities and net assets 8,313,956 8,314,118
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-4- （２）Consolidated Statement of Income and Consolidated Income （Consolidated Statement of Income for the Six Months Ended August 31, 2026） (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Operating revenue Revenue from credit card business 69,651 78,499 Revenue from installment sales finance business 26,530 31,357 Financing revenue 86,625 92,071 Recoveries of written off receivables 9,890 12,210 Financial revenue 34,981 46,789 Insurance revenue 4,102 553 Fees and commissions 41,949 43,771 Other 4,429 5,949 Total operating revenue 278,160 311,202 Operating expenses Financial expenses 27,664 40,308 Insurance expenses 3,677 341 Fees and commissions payments 5,332 6,626 Selling, general and administrative expenses 210,888 236,534 Other 2,276 2,181 Total operating expenses 249,838 285,992 Operating profit 28,322 25,209 Non-operating income Dividend income 160 335 Gain on investments in investment partnerships 1,958 40 Foreign exchange gains － 346 Other 34 53 Total non-operating income 2,153 776 Non-operating expenses Share of loss of entities accounted for using equity method 157 － Foreign exchange losses 1,123 － Miscellaneous losses 2 13 Total non-operating expenses 1,282 13 Ordinary profit 29,192 25,972 Extraordinary income Gain on sale of non-current assets 10 7 Gain on sale of investment securities 1,013 1,731 Total extraordinary income 1,023 1,738 Extraordinary losses Loss on disposal of non-current assets 207 346 Impairment losses 2,794 474 Loss on sale of investment securities － 39 Loss on valuation of investment securities － 277 Loss on sale of shares of subsidiaries 9,539 － Other － 13 Total extraordinary losses 12,542 1,151 Profit before income taxes 17,674 26,559 Income taxes - current 9,407 8,764 Income taxes - deferred (7,843) 115 Total income taxes 1,564 8,879 Profit 16,109 17,680 Profit attributable to non-controlling interests 7,364 7,627 Profit attributable to owners of parent 8,745 10,052
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-5- （Consolidated Statement of Comprehensive Income for the Six Months Ended August 31, 2026） (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Profit 16,109 17,680 Other comprehensive income Valuation difference on available-for-sale securities (24,895) (42,764) Deferred gains or losses on hedges 13,170 20,421 Foreign currency translation adjustment 4,982 (3,651) Remeasurements of defined benefit plans, net of tax 97 (2) Total other comprehensive income (6,645) (25,996) Comprehensive income 9,464 (8,316) Comprehensive income attributable to Comprehensive income attributable to owners of parent (1,479) (14,053) Comprehensive income attributable to non-controlling interests 10,943 5,737
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-6- （３）Notes on the Consolidated Financial Statements （Notes Regarding the Going Concern Assumption） Not applicable. （Notes Regarding Significant Changes in Shareholders’ Equity） Not applicable. （Significant Changes in the Scope of Consolidation During the Interim Period） During the current interim consolidated accounting period, the Company absorbed its consolidated subsidiary, AFS Corporation, through a merger, and consequently excluded the subsidiary from the scope of consolidation. （Segment Information） Interim period of previous fiscal year（March 1, 2025 to August 31, 2025） １．Information on the amount of operating revenue and profit or loss by reportable segment, and information on the breakdown of revenue (Millions of yen) Reportable segments Total Reconciling items (Notes) 2 Per semi- annual consolidated financial statements (Notes) 3 Domestic Overseas Retail Solutions China Area Mekong Area Malay Area Sales Revenues from external customers 118,777 44,667 17,165 49,273 48,266 278,150 10 278,160 Transactions with other segments 3,727 50,691 0 8 － 54,427 (54,427) － Operating revenue 122,505 95,358 17,166 49,281 48,266 332,578 (54,417) 278,160 Operating profit (loss) 4,759 6,443 5,295 7,901 5,560 29,959 (1,637) 28,322 （Notes）１. Operating revenue is shown instead of general corporate sales. ２. The adjustment amounts are as follows: The adjustment of ¥10 million for operating revenue from external customers is operating revenue from holding companies that do not belong to any business segment. The adjustment of △¥1,637 million for segment profit is mainly comprised of operating profit from holding companies, etc. that do not belong to any business segment and elimination of inter-segment transactions. ３. Segment profit or loss (△) has been adjusted with operating profit on the consolidated statements of income for the interim period of the previous fiscal year. ４. Revenues from contracts with customers subject to the revenue recognition accounting standard included in operating revenues from external customers for the interim period of the previous fiscal year, by reportable segment, were Domestic Retail: ¥35,428 million, Domestic Solutions: ¥22,285 million, China Area: ¥3,259 million, Mekong Area: ¥4,728 million, and Malay Area: ¥4,650 million, while the adjustment amount was ¥0 million. ２．Information regarding impairment losses on fixed assets or goodwill, etc. by reportable segment In the retail segment, as a result of reviewing the business plan following the conclusion of the share transfer agreement for AEON Allianz Life Insurance Co., Ltd. (hereinafter, AEON Allianz Life), an impairment loss of ¥2,733 million was recorded on the fixed assets of AEON Allianz Life.
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-7- Interim period of current fiscal year（March 1, 2026 to August 31, 2026） １．Information on the amount of operating revenue and profit or loss by reportable segment, and information on the breakdown of revenue (Millions of yen) Reportable segments Total Reconciling items (Notes) 2 Per semi- annual consolidated financial statements (Notes) 3 Domestic Overseas Retail Solutions China Area Mekong Area Malay Area Sales Revenues from external customers 130,751 49,428 19,980 51,651 59,376 311,188 13 311,202 Transactions with other segments 3,921 53,279 6 4 － 57,212 (57,212) － Operating revenue 134,673 102,707 19,987 51,656 59,376 368,400 (57,198) 311,202 Operating profit (loss) 3,082 3,327 6,368 6,458 6,340 25,577 (368) 25,209 （Notes）１. Operating revenue is shown instead of general corporate sales. ２. The adjustment amounts are as follows: The adjustment of ¥13 million for operating revenue from external customers is operating revenue from holding companies that do not belong to any business segment. The adjustment of △¥368 million for segment profit is mainly comprised of operating profit from holding companies, etc. that do not belong to any business segment and elimination of inter-segment transactions. ３. Segment profit or loss (△) has been adjusted with operating profit on the consolidated statements of income for the interim period. ４. Revenues from contracts with customers subject to the revenue recognition accounting standard included in operating revenues from external customers for the interim period of the current fiscal year, by reportable segment, were Domestic Retail: ¥35,887 million, Domestic Solutions: ¥23,726 million, China Area: ¥3,676 million, Mekong Area: ¥5,370 million, and Malay Area: ¥5,694 million. ２．Matters regarding change to reportable segments During the previous fiscal year, with the objective of making it easier for stakeholders to understand, the reportable segment title which was previously reported as "Global" has been changed to "Overseas." This change is only a change in title name and has no impact on segment information. The segment information for the first half of the previous consolidated fiscal year is also described using the changed title. ３．Information regarding impairment losses on fixed assets or goodwill, etc. by reportable segment In the Solutions segment, regarding fixed assets, an impairment loss of ¥349 million was recorded as a result of reducing the book value of the development costs to a recoverable amount following the discontinuation of the introduction of a new service.
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-8- （Significant Subsequent Events） （Issuance of Unsecured Bonds） Based on a resolution of the Board of Directors held on February 26, 2026, the Company issued unsecured straight bonds on October 7, 2026. The details are as follows: １．(1）Name of the bonds ：32nd series Unsecured Bonds (with pari passu clause) (2）Total issue amount ：14 billion yen (3）Interest rate ：2.639％ (4）Issue price ：100 yen per 100 yen of face value (5）Issue date ：October 7, 2026 (6）Maturity date ：October 5, 2029 (7）Redemption method ：Lump-sum redemption at maturity Purchase and cancellation may be performed at any time after the day of the payment date. (8）Payment date ：October 7, 2026 (9）Use of proceeds ：Funds will be used toward the repayment of short-term borrowings by November 30, 2026. ２．(1）Name of the bonds ：33rd series Unsecured Bonds (with pari passu clause) (2）Total issue amount ：8 billion yen (3）Interest rate ：3.073％ (4）Issue price ：100 yen per 100 yen of face value (5）Issue date ：October 7, 2026 (6）Maturity date ：October 5, 2031 (7）Redemption method ：Lump-sum redemption at maturity Purchase and cancellation may be performed at any time after the day of the payment date. (8）Payment date ：October 7, 2026 (9）Use of proceed ：Funds will be used toward the repayment of short-term borrowings by November 30, 2026.