AIFUL: Aiful : Announcement of financial results for the Third quarter FY ending March 31, 2023

(Translation for reference only) February 10, 2023 Consolidated Financial Results for the Third Quarter of Fiscal Year 2022 For the Nine Months Ended December 31, 2022 (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: February 13, 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 Third Quarter of Fiscal Year 2022 (April 1, 2022 - December 31, 2022) (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 Nine months ended December 31, 2022 107,583 9.2% 17,755 (4.6)% 18,320 (3.4)% 16,869 (7.1)% December 31, 2021 98,492 2.7% 18,602 19.2% 18,963 11.8% 18,161 12.4% Note: Comprehensive income: For the nine months ended December 31, 2022 17,878 million yen 1.6% December 31, 2021 17,589 million yen 6.0% Net Income per Share (Yen) Diluted Net Income per Share (Yen) Nine months ended December 31, 2022 34.88 - December 31, 2021 37.55 - 2. Consolidated Financial Position Total Assets Net Assets Shareholders' Equity Ratio (%) As of December 31, 2022 March 31, 2022 1,045,277 935,642 173,921 156,526 16.3 16.4 Reference: Shareholders' equity: As of December 31, 2022 170,555 million yen As of March 31, 2022 153,900 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, 2022 - 0.00 - 1.00 1.00 FY ending March 31, 2023 - 0.00 - FY ending March 31, 2023 1.00 1.00 (Forecast) Note: Revisions to dividend forecasts: None Earnings Forecast on a Consolidated Basis for the Fiscal Year ending March 31, 2023 (April 1, 2022 - March 31, 2023) (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) Fiscal year ending 144,800 9.6% 23,800 111.7% 24,000 95.7% 21,300 72.7% 44.04 March 31, 2023 Note: Revisions to consolidated earnings forecasts: Yes IV. Other Changes in significant subsidiaries during the nine months ended December 31, 2022 (Changes in specified subsidiaries resulting changes in scope of consolidation): None Adoption of special accounting methods for quarterly consolidated financial statements: None Changes in accounting policies, accounting estimates and restatements Changes in accompanying amendments to accounting standards: None Changes other than those in (a): None Change in accounting estimates: Yes Restatements: None Number of shares issued (Common stock) Changes in accompanying amendments to accounting standards: None Changes other than those in (a): None Change in accounting estimates: Yes Restatements: None (a) Number of shares issued at the end of the period FY2022 3Q 484,620,136 shares FY2021 484,620,136 shares (including treasury stock) (b) Number of treasury stock at the end of the period FY2022 3Q 917,594 shares FY2021 917,470 shares (c) Average number of shares during the period FY2022 3Q 483,702,611 shares FY2021 3Q 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 Consolidated Statements of Comprehensive Income................................................................... 4 (3) Quarterly Consolidated Statements of Cash Flows................................................................. 6 (4) Notes to Quarterly Consolidated Financial Statements .......................................................... 7 (Notes on Premise of Going Concern) .................................................................................. 7 ( Changes in Scope of Consolidation) .............................................................................. 7 (Changes in Accounting Estimates) ...................................................................................... 7 (Notes in Case of any Significant Changes in the Amount Shareholders' Equity) ................................ 7 (Additional Information)..................................................................................................... 8 1 1. Quarterly Qualitative Information on Business Results Qualitative Information on Business Results In the first 3 quarters of the fiscal year under review, the Japanese economy showed signs of recovery in socio-economic activities due to the relaxation of activity restrictions caused by COVID-19 pandemic. However, the outlook remains uncertain due to concerns over a surge of COVID -19 new variant and an economic slowdown stemming from rising prices, including energy and soaring raw material prices, against the backdrop of the worsening situation in Ukraine and the ongoing depreciation of the yen. The consumer finance industry's recovery trend continued as the number of new contracts at major companies increased year- on-year. 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, in order to realize AIFUL Group's management theme "Go (new) Standard -Deepening Customer Orientation-", the Company will focus on "diversification of business portfolio" through business diversification and strengthening overseas businesses, etc., and "utilization of digital technologies," such as IT technology analysis and in-house production of systems. At the same time, we will strive to expand assets by balancing "growth potential" and "profitability" and optimize management resources to maximize consolidated income, while responding to requests for interest repayment, which is one of our management issues. For more than 50 years since its foundation, the AIFUL Group has used the Heart mark as a corporate symbol that symbolizes a sense of security and integrity. To upgrade to an image that is appropriate for a corporate stance of providing new value for the future in anticipation of the next 50 or 100 years, we revamped our VI (visual identity) and began using the new Art symbol and the Company logo on July 7, 2022. (Overview of the results) AIFUL Group's consolidated operating revenue for the third quarter of the fiscal year ending March 31, 2023 was 107,583 million yen (up 9.2% year on year). The principal components were 62,351 million yen in interest on loans (up 9.3% year on year), 15,294 million yen in revenue from the credit card business (up 10.3% year on year) and 12,532 million yen in revenue from the credit guarantee business (up 6.7% year on year). Operating expenses increased by 9,938 million yen, or 12.4% year on year to 89,828 million yen. This was mainly due to an increase in advertising expenses by 3,138 million or 38.1% year on year to 11,368 million yen and an increase in provision for allowance for doubtful accounts of 2,823 million yen or 10.9% year on year to 28,815 million yen. As a result, AIFUL Group posted operating profit of 17,755 million yen (down 4.6% year on year) and ordinary profit of 18,320 million yen (down 3.4% year on year). Profit attributable to owners of parent stood at 16,869 million yen (down 7.1% year on year), reflecting a profit attributable to non-controlling interests of 435 million yen. (2) Qualitative Information on the Forecasts for the Consolidated Business Results The earning forecast for the full fiscal year ending March 31, 2023 has not been changed from the forecast announced on November 10, 2022. 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. 2 2. Quarterly Consolidated Financial Statements and Notes Quarterly Consolidated Balance Sheets (Millions of yen) As of March 31, 2022 As of December 31, 2022 Assets Current assets Cash and deposits 44,448 59,178 Operating loans 547,457 590,119 Accounts receivables - installment 110,244 131,070 Operational investment securities 2,312 2,519 Customers' liabilities for acceptances and guarantees 193,225 213,756 Other operating receivables 10,241 12,347 Purchased receivables 5,338 6,326 Other 25,440 37,312 Allowance for doubtful acc