Following Hong Kong, AEON CREDIT SERVICE established AEON THANA SINSAP (THAILAND) PLC. as its second overseas base in 1992. The Thai base’s steady business expansion led to its listing on the Stock Exchange of Thailand in December 2001. AEON THANA SINSAP (THAILAND) has successfully expanded its cardholder base through active subscription offerings in cooperation with AEON, Carrefour, Tesco Lotus and other affiliated companies. At the same time, this Thailand base has worked to classify cardholders through such means as issuing gold cards for those with excellent credit standing. As a result of these activities, we had 6.69million cardholders as of February 20, 2013, making us one of the top credit card companies in the country. In servicer operations, the Company has formed new business alliances local companies, including mobile phone carriers and financial institutions. In the insurance brokerage business, we have expanded our network providing over-the-counter insurance sales throughout Thailand.

Established in Hong Kong in 1990 as the Company’s first overseas base, AEON CREDIT SERVICE (ASIA) CO., LTD. was first listed on Hong Kong Exchanges and Clearing in September 1995. Through aggressive subscription offering and sales stimulus campaigns via local affiliated companies over more than 20 years, the Hong Kong base has acquired a total of 1.16 million cardholders as of February 20, 2013. As an initiative to expand the scope of its operations, AEON CREDIT SERVICE (ASIA) now provides Internet retailing services in cooperation with local affiliated companies. In December 2008, the Company established AEON INSURANCE BROKERS (HK) LIMITED, which has commenced full-scale telemarketing and over-the-counter insurance sales.

Using our nationwide sales network, we are actively working to increase cardholder numbers and develop new co-branded cards with affiliated merchants. As of March 31, 2013, our cardholders numbered 31.85 million, led by AEON Card. Also, focusing on the issuance of co-branded cards in cooperation with industry-leading companies, we are working to aggressively broaden our cardholder base, centering our efforts on male customers and a younger age-group.

Established in 1997 as our third base in rapidly growing Asia, AEON CREDIT SERVICE (M) BERHAD was listed on the Bursa Malaysia Berhad in December 2007. Owing to our aggressive pioneering of affiliated merchants and our effective subscription offering in sync with store openings of affiliated companies, we have steadily broadened our cardholder base, which comprised 1.13million cardholders as of February 20, 2013. Also from 2007, AEON CREDIT SERVICE (M), as the first non-bank in the country, added an ATM-compatible function to its credit cards for improved cardholder convenience. In addition, AEON CREDIT SERVICE (M) has started the issuance of the Touch’n Go Card, an electronic toll collection (ETC) card used to pay for highway tolls and train and city-bus fares. With the aim of facilitating more effective subscription offering, we have introduced an integrated subscription form for the AEON CARD and the Touch’n Go Card.

Operations in Taiwan - AEON Credit Card (Taiwan),AEON CREDIT SERVICE (Taiwan)AEON CREDIT CARD (TAIWAN) CO., LTD., which became the first Japanese non-bank to acquire a credit card issuing license in Taiwan in May 2002, has made concerted efforts to develop new co-branded cards and boost over-the-counter sign-ups at affiliated merchant stores. As a result, the number of cardholders grew to 140thousand as of December 31, 2012. AEON CREDIT SERVICE (TAIWAN) CO., LTD., which undertakes a hire purchase business, is steadily increasing its transaction volume through the pioneering of affiliated home-appliance and other stores and the staging of joint campaigns with these affiliated parties.

In Indonesia, which boasts the largest population among ASEAN member states and high economic growth, AEON CREDIT SERVICE established PT. AEON CREDIT SERVICE INDONESIA in May 2006. Drawing on the Company’s credit business expertise gained in Japan and other Asian countries, we started a hire purchase business targeting consumer electronics and furniture stores. Implementing such initiatives as increasing the membership cardholder base, this Indonesian arm is accelerating the establishment of a marketing structure required prior to the launch of credit card services. This company is simultaneously focusing on the pioneering of affiliated merchant stores, having successfully developed a network of affiliated merchant stores to date.

In June 2000, AEON INFORMATION SERVICE (SHENZHEN) CO., LTD. established a screening, debt-collection and call-center agent in Guangzhou as a new Chinese base. AEON CREDIT SERVICE (ASIA) CO., LTD. has transferred its call-center and screening operations to this agent, aiming to improve operational efficiency. In August 2006, Beijing-based AEON CREDIT GUARANTEE (CHINA) CO., LTD. acquired a license for credit guarantee operations from the Beijing Administration for Industry and Commerce, becoming the first company of its kind set up as a Japanese company on mainland China. This company provides installment guarantee services at AEON stores and electronics retail stores in the country. As a new business launched in cooperation with a local AEON subsidiary, we commenced the issuance of the AEON IN-HOUSE CARD with credit functions. As of December 31, 2012, the number of subscribers to the AEON IN-HOUSE CARD totaled 350thousand. Looking ahead, the Company is seeking to expand the area targeted by its AEON IN-HOUSE CARD services, thereby accelerating the growth of its cardholder base and credit card business development.

Having obtained a retailing license from the Ho Chi Minh City Department of Planning and Investment in June 2008, AEON CREDIT SERVICE established ACS TRADING VIETNAM CO., LTD. Leveraging the Company’s extensive credit business expertise accumulated in Japan and other Asian countries, ACS TRADING VIETNAM conducts the installment sale of consumer durables, such as personal computers, home appliances and furniture. Through this Vietnamese arm, we are working to reinforce our affiliated local retailer base and identify local customer classifications, aiming to build the strong marketing foundation required to start a credit card business in the country.

Following its market entries in Hong Kong, Thailand, Malaysia, Taiwan and Indonesia, AEON CREDIT SERVICE established a new subsidiary in the Philippines in February 2008 to serve as its latest Asian base. This new Filipino base is providing support to the other Asian subsidiaries and establishing the business foundation required for the further expansion of the Company’s credit business in the region. In addition, AEON CREDIT SERVICE established a new subsidiary in March 2013. The Company started installment servises.

In February 2013, a local subsidiary in Mumbai was incorporated after the granting of non-bank business license by the Reserve Bank of India. In India, the Company provides installment services for consumer durable products such as electrical appliances and furniture, etc., and at the same time expands its merchant networks, actively developing joint promotions with merchant stores, so as to striving for expanding its businesses.

Efforts to Increase Cardholders

Using our nationwide sales network, we are actively working to increase cardholder numbers and develop new co-branded cards with affiliated merchants. As of March 31, 2013, our cardholders numbered 31.85 million, led by AEON Card. Also, focusing on the issuance of co-branded cards in cooperation with industry-leading companies, we are working to aggressively broaden our cardholder base, centering our efforts on male customers and a younger age-group.

Efforts to Increase Cardholders

We provide cardholders with numerous incentives, ranging from discounts to an enhanced point system. We broke new ground by extending our no annual fee policy to all the cards that we issue, including the AEON Gold Card, the first gold card in Japan without an annual fee, and our electric toll collection (ETC) cards. As well as enhancing the Tokimeki Point Club program, which offers cardholders bonus points when they shop, we have gone to great lengths to raise the number of affiliated merchants. These include utilities companies and,- Japan Broadcasting Corporation (NHK),both of which register cardholder details for the settlement of monthly bills by credit card.

Moreover, in addition to those inside the AEON shopping malls all over the country, AEON bank's ATMs are installed in MINISTOPs, stations, airports, etc., and compatible for various cards issued by partnered financial institutions. Transaction fees are waived for AEON cash card or AEON Card Select and the AEON ATMs are available also for recharging e-money "WAON" at any time 365 days.

Furthermore, the bank provides consultations to customers for their preparation for future through different kinds of loans such as mortgage loans, insurance products and financial products such as investment funds. Besides, the bank also provides AEON bank products and services such as fix deposit accounts and mortgage loan pre-screening through the internet. For corporate customers, taking advantage of the know-how of developed "close adherence to the local community", the bank offers solutions through direct contacts with every customer.

E-Money Business

AEON CREDIT SERVICE made a full-scale entry into the e-money business in April 2007 with the issuance of its original e-money, WAON. Since then, the Company has actively expanded the cardholder base for WAON-compatible credit cards, including the AEON JMB CARD. At the same time, we have entered into business alliances with third parties to spread the use of WAON and gone to great lengths to raise the number of affiliated merchants who accept WAON. Through these activities, we are working to develop WAON into a regional currency. As of March 31, 2013, the number of WAON-affiliated merchants totaled 160,000 nationwide, with the total number of WAON-compatible credit cards issued reaching 31.8 million. As a result, the total value of e-money transactions using WAON-compatible credit cards, the AEON SUICA CARD and the AEON iD CREDIT CARD payment function for mobile phones has significantly grown, reaching 1,311.3billion yen.

Bank Agency Business

In October 2007, AEON CREDIT SERVICE incorporated the procedure for opening AEON BANK ATM CARD accounts into the existing AEON CARD subscription process. Promoting such campaigns nationwide and utilizing its marketing networks and expertise in offering subscriptions, the Company is efficiently expanding its accountholder base. In February 2009, we commenced the issuance of the AEON CARD SELECT, which provides credit-card, ATM-card and e-money functions in one card. Through this and other initiatives, we are continuously improving both customer convenience and the quality of our services. In credit guarantee operations, the Company is expanding the scope of services by commencing unsecured loan guarantees and providing credit guarantees for residential renovation loans.

Insurance agency business: AEON INSURANCE SERVICE CO., LTD.

Regarding to the Insurance Agency Business, the insurance agency business started in 1990 and all insurance agency companies under the group were unified into AEON INSURANCE SERVICE CO., LTD. in 2008. AEON Insurance Shops are developed centering on AEON shopping centers and catering for different customers' niche, providing proposals in a fair and neutral position. Besides, the company operates AEON Insurance Market online. The provision of consolidated quotation on car and bike, request for life and non-life insurance information and contract become possible.

Mortgage bank business: AEON HOUSING LOAN SERVICE., LTD.

As the lending window for mortgage loan, AEON Housing Loan Service, which joined the AEON Group in January 2012, has strengthened its sales capacity by expanding its business networks through the branches and outlets of AEON Credit Service all over the country. Moreover, through cooperation with retail, the Company has strengthened different measures for promoting convenience to customers. For those customers who have contracted mortgage loans, the Company provides customers with "AEON Select Club" privileges including 5% discount on daily shopping in AEON. Furthermore, the Company is the only mortgage bank which has acquired bank agency license. In March 2013, the Company starts to act as agent for mortgage loans provided by AEON Bank. In addition to the regular "Flat 35" long term fixed interest plan, the Company also provides "Floated Interest Plan" for meeting customers' niche through the sales of mortgage loan.

Short-term small-amount insurance business: AEON S.S. Insurance CO., LTD.

Different from Life Insurance Company and General Insurance Company, [Short-term small-amount insurance business] is set up as a new type of insurance business which is called Mini Insurance Company. By effectively utilizing the know-how in both life and general insurance business, it aims at providing easy understanding and useful products which makes customers satisfied. The company will develop and provide low-priced valuable private insurance products in future.

Servicer Business: ACS CREDIT MANAGEMENT CO., LTD.

By utilizing the know-how in collecting personal loan receivables, the Company involves in the purchase of credit receivables, mortgage loan receivables, etc, and provides collection services and collection agency services for different industries for collecting public utility fees, mobile phone fees, and mail-order fees. Meanwhile, the Company has set up operations in different areas all over Japan as a measure to strengthen the collection structure and expand the businesses regarding to purchase of receivables and collection service.