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Operating Revenues Operating Income Yoy Yoy Statements contained in this report with respect to the Company’s management strategies, business policies and results forecasts are forward-looking statements about the future performance of the Company , which are based on the assumptions and beliefs in light of the information currently available. These forward-looking statements involve various uncertain factors including known and unknown risks such as economic trends, industry competition, market demand, exchange rates , tax and other systems that may cause the Company’s actual results, performance or achievements to differ materially from the expectations expressed herein. YoY for FY2012 compares the term from February 21 , 2012 to March 31 , 2013 with the term from February 21, 2011 to February 20, 2012. 1 AEON Financial Service Co.,Ltd. Results for Fiscal Year 2012 company Overseas business companies ecompany the Results for Fiscal Year 2012 Results for Fiscal Year 2012 of TOSHIBA FINANCE CORPORATION structure AEON HOUSING LOAN SERVICE CO., LTD. Service Service AEON S.S. Insurance CO., LTD. organizational the with ACS CREDIT MANAGEMENT CO., LTD. 1, Financial Financial April on AEON Bank, Ltd. AEON made AEON INSURANCE was SERVICE CO., LTD. split AEON CREDIT SERVICE CO., LTD. company A company split was made on April 1, with the organizational structure of th AEON Financial Service Co.,Ltd. Organizational Structure of AEON Financial Service changed to that a of bank holding company. ■ 2 Operating Data ■ Consolidated transaction volume was ¥4.2488 trillion (+ ¥885 billion) thanks to attracting new cardholders and implementing affiliation plans with cooperative businesses . ■ Consolidated ordinary income was ¥33.4 billion (YoY 137%, ¥900 million above forecast). (Billions of yen) Year-on-Year Difference from Consolidated Results Forecast Change Forecast Transaction volume 4,248.8 126% 3,700.0 +548.8 Operating revenues 206.0 121% 196.0 +10.0 Operating income 33.1 136% 32.5 + 0.6 Ordinary income 33.4 137% 32.5 + 0.9 Net income 13.6 151% 13.8 - 0.2 Year-on-Year Difference from Non-Consolidated Results Forecast Change FtForecast Transaction volume 3,858.8 126% 3,400.0 +458.8 Operating revenues 130.0 111% 123.0 +7.0 Operating income 17.0 127% 15.5 +1.5 Ordinary income 19.5 129% 17.7 +1.8 Net income 11.1 145% 11.0 + 0.1 (Figures are rounded to the nearest 100 million yen.) 3 AEON Financial Service Co.,Ltd. Results for Fiscal Year 2012 Effects of Changed Settlement Date and AEON Bank Consolidation ■ Consolidated results of the former AEON Credit Service were operating revenues of ¥186. 3 billion and operating income of ¥31.2 billion. (Billions of yen) FY 2012 ( aft er eli mi nati on of Former AEON Credit Service Change of AEON Bank intersegment transactions) settlement date Consolidated (end of Q4) YoY (3/1-3/31) Results YoY results Operating revenues 186.3 110% 10.6 11.1 206.0 121% Operating income 31.2 129% 1.0 3.6 33.1 136% Ordinary income 31.4 130% 1.0 3.6 33.4 137% Net income 13.0 145% 0.4 3.3 13.6 151% (Figures are rounded to the nearest 100 million yen.) 4 AEON Financial Service Co.,Ltd. Results for Fiscal Year 2012 Results by Segment ■ In the credit business, card shopping became favorable, with operating revenues of ¥111.7 billion (YoY 110%). ■ There was an increase in profit and income in overseas business thanks to development in new regions and expansion of business areas. ■ In the bank business, there was expansion of sales networks and an increase in numbers of bank accounts, with core business doing well. (Billions of yen) Operating revenues Operating income YoY YoY Credit business 111.7 110% 20.6 125% Fee bu siness 26. 9 158% 181.8 +191.9 Overseas business 62.0 118% 13.5 122% - - Bank business* 9.5 1.3 (38.0) (131%)(5.9)(2.4) Elimination of intersegment transactions - 4.3 - - 4.1 - Consolidated results 206. 0 121% 33. 1 136% (Figures are rounded to the nearest 100 million yen.) *Bank business numbers inside ( ) show AEON Bank’s standalone operating revenues and ordinary income. 5 AEON Financial Service Co.,Ltd. Results for Fiscal Year 2012 Quarterly Results by Segment ■ Fee business was brought into the black thanks to expansion of e-money business and the business operations of AEON HOUSING LOAN SERVICE CO., LTD. ■ Bank business reflects the results from AEON Bank in Q4. (Billions of yen) 1Q 2Q 3Q 4Q Full year Operating revenues Results YoY Results YoY Results YoY Results YoY Results YoY Credit business 23.8 101% 24.3 98% 24.5 86% 39.1 155% 111.7 110% Fee business 5.4 136% 6.4 149% 5.7 136% 9.4 206% 26.9 158% Overseas business 14. 4 113% 14. 5 112% 15. 0 118% 18. 1 130% 62. 0 118% Bank business 9.0 150% 9.0 94% 10.9 152% 9.1 149% 38.0 131% Elimination of intersegment -0.3 - -0.3 - -0.3 - -3.4 - -4.3 - transactions Consolidated results 43.3 109% 45.0 108% 45.0 99% 72.7 169% 206.0 121% 1Q 2Q 3Q 4Q Full year Operating revenues Results YoY Results YoY Results YoY Results YoY Results YoY Credit business 3.5 118% 3.7 98% 4.7 103% 8.7 170% 20.6 125% Fee business 0.4 + 0.6 0.7 + 0.7 0.3 +0.3 0.4 +0.3 1.8 +1.9 Overseas business 3.1 124% 2.8 105% 3.4 123% 4.2 133% 13.5 122% Bank business 1.1 487% 0.7 -2.8 1.1 167% 3.0 +3.9 5.9 168% Elimination of intersegment -0.8 - -0.4 - -0.8 - -2.1 - -4.1 - transactions Consolidated results 6.2 138% 6.8 118% 7.6 118% 12.5 165% 33.1 136% (Figures are rounded to the nearest 100 million yen.) *Bank business numbers show AEON Bank’s standalone operating revenues and ordinary income. 6 AEON Financial Service Co.,Ltd. Results for Fiscal Year 2012 Financial Data ■ Account balance of ¥1,220.1 billion was appropriated through consolidation of AEON Bank, with total assets of ¥2,534.2 billion. ■ There was an increase in interest-bearinggppy debt of approximately ¥100 billion because of the effects of foreigggn exchange and an increase in month-end accounting at participating stores. ■ As of the end of April, consolidated interest-bearing debt was at approximately ¥640 billion, which is down ¥154 billion from February 21, 2012. (Billions of yen) Consolidated AEON Credit Service (standalone) Change from February Change from Results Results 21, 2012 February 21, 2012 TtlT o t a l asset s 2, 534. 2 +1, 626. 5 961. 3 +302. 4 Total finance receivables (incl. securitized 1,258.9 +217.6 866.6 +124.5 receivables) Bank business receivables 706.8 --- AtA ccount blb a l ance 1, 220. 1 +103. 4 -- Interest-bearing debt 793.2 +275.9 541.6 +214.4 Net assets 258.9 +77.0 202.3 +63.3 Equity ratio 9.1 % -8.4 % 21.0 %-0.1 % (BIS standard) 10.6 % --- *Account balance shows figures for AEON Bank alone 7 AEON Financial Service Co.,Ltd. Results for Fiscal Year 2012 Review of FY 2012 ① Domestic business 2012 Jan ・AEON HOUSING LOAN SERVICE CO., LTD. (formerly Toshiba Housing Loan Service) became a consolidated subsidiary 2012年 Mar ・Convertible bonds issued for acquisition of own stock and to further accelerate Asia business 2012年 Aprp ・Share repp(urchase (12.66 million shares ) 2013 May ・Toshiba Finance became a consolidated subsidiary・ ② Overseas business 2012 Jun ・Supervised Chinese company (Hong Kong) established , speeding up growth of business in Chinese-speaking territories 2012年 Aug ・Thailand business reorganized with insurance agency/debt collection business set as a consolidated subsidiary of AEON THANA SINSAP 2012年 Sept ・Start of credit business in Tianjin, China 2013 Feb ・Start of installment payment business in India (Mumbai) 2013年 Mar ・Start of finance business in Philippines (in addition to system development business) 2013年 Apr ・Start of installment payment business in Shenzhen ③ Merger with AEON Bank 20120 Sept ・Business merger announced 000000 Nov ・Agreement on stock swap reached at extraordinary general meeting of shareholders 2013 0Jan ・AEON Bank becomes a wholly-owned subsidiary 2013年 Feb ・Agreement on details of company split reached at extraordinary general meeting of shareholders 00000 Mar ・¥5 dividend issued to commemorate business merger 0 Apr ・AEON Financial Service Co., Ltd. established 8 AEON Financial Service Co.,Ltd. Results for Fiscal Year 2012 Number of Cardholders and Active Cardholders ■ There are 31.85 million consolidated cardholders (+2.09 million), 22.24 million of whom are in Japan (+1.23 million). ■ There are 17.84 million active consolidated cardholders (+1.37 million), 13.72 million of whom are in Japan (+1.04 million). ■ There are 3.06 million accounts (+470,000), including 1.95 million AEON Card Select members (+420,000). FY 2011 FY 2012 YoY change Number of cardholders, 29.76million holders 31.85million holders +2.09million holders consolidated Domestic 21.01million holders 22.24million holders +1.23million holders Number of active 16.47million holders 17.84million holders +1.37million holders cardholders, consolidated DtiDomestic 12. 68million hldholders 13. 72million hldholders +1041.04million hold ers Number of accounts 2.59 million 3.06 million +470,000 AEON Card Select 1.53 million holders 1.95 million holders +420,000 holders Number of bank branches 81 105 +24 Number of ATMs 1,943 2,680 +737 9 AEON Financial Service Co.,Ltd. Results for Fiscal Year 2012 Growth in Credit Card Shopping (Consolidated) and WAON Transaction Volume ■ Card shopping and WAON transaction volume increased by ¥1 trillion year-on-year, reaching ¥4.873 trillion (YoY 126%).
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