Supplementary Materials for the First-Quarter Financial Results for the Fiscal Year Ending March 2027 | ZENKOKU HOSHO Co.,Ltd. (7164) timely disclosure

Worth reading

57In focus

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Improvement

Direction inferred from the company’s description.

Scale

563

¥ million

Wording

Definitive

How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending March 202710 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Operating profit¥7,724 million+0.1%

Ordinary income¥9,335 million+7.9%

Net income¥6,562 million+9.4%

Results for the three months of the current quarter

Operating revenue

¥11,772 million+2.5%

Operating profit

¥7,724 million+0.1%

Ordinary income

¥9,335 million+7.9%

Profit attributable to owners of parent for the quarter

¥6,562 million+9.4%

Full-year earnings forecast

Operating revenue

¥60,600 million

Operating Expenses

¥18,600 million

Operating profit

¥42,000 million

Ordinary income

¥47,200 million

Profit attributable to owners of the parent

¥32,700 million

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Increase in operating revenue+¥200 million
Increase in credit-related expenses-¥60 million
Increase in other operating expenses−¥0.2 billion
Increase in interest and dividends received, etc.+¥400 million
Equity-method income (Intellix Holdings)+¥90 million
Equity-method income (Nakanihon General Credit, equivalent to gain on bargain purchase)+¥100 million
Gain on sale of cross-shareholdings+¥100 million
Increase in income taxes, etc.−¥0.2 billion

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Guarantee Obligations Outstanding
Fiscal year ending March 202621.4
Fiscal year ending March 202722.5
New guarantee execution amount
Fiscal year ending March 202619,194
Fiscal year ending March 202719,600
Subrogation payment amount
Fiscal year ending March 2026165
Fiscal year ending March 2027170
Collection of subrogation claims
Fiscal year ending March 2026105
Fiscal year ending March 2027110

New initiatives

New initiatives relating to residential mortgages with the Intellix Holdings Group and Rakuten Bank
Making Nakanihon General Credit Co., Ltd. an equity-method affiliate through the acquisition of its shares
Continuation of the support program for families raising children
Digital transformation through the Web Application Service (WSS) and My Page Service (ZEWS)

Key KPIsA metric the company considers important as a management benchmark.

Guarantee Obligations Outstanding¥21.5 trillion
Year on year against the same period last year+9.0%
New guarantee execution amount4,886 Hundreds of millions of yen
Year on year against the same period last year+13.7%
Number of new guarantees executed14,186 Engagements
Subrogation payment amount¥3,964 million
Year on year against the same period last year+12.6%
Subrogation payment rate0.09 %
Year on year against the same period last yearAt approximately the same level as the previous year
Recovery rate from collateral disposals71.2 %
Interest and dividends received, etc.15 Hundreds of millions of yen
Year on year against the same period last year+36.0%

Unit price and quantity metricsThese figures show sales broken down by price and volume.

New guarantee execution amount4,886 Hundreds of millions of yen
Year on year against the same period last year+13.7%
Number of new guarantees executed14,186 Engagements
Guarantee unit priceHigher

Financial targets

ROE

Target14 %

Actual results13.4 %

Market Size / Share

New residential mortgage lending¥21 trillion per year
Outstanding private-sector residential mortgages210 Over ¥ trillion

Annual Dividend

Annual dividend per share¥123

Interim¥50

End of period¥73

Payout ratio

Acquisition of treasury shares

The company mentioned a policy of conducting share repurchases flexibly. The repurchase amount, number of shares and period were not disclosed.

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Operating profit	¥7,724 million (YoY +0.1%)
Ordinary income	¥9,335 million (YoY +7.9%)
Net income	¥6,562 million (YoY +9.4%)
Results for the three months of the current quarter	Operating revenue ¥11,772 million (YoY +2.5%) / Operating profit ¥7,724 million (YoY +0.1%) / Ordinary income ¥9,335 million (YoY +7.9%) / Profit attributable to owners of parent for the quarter ¥6,562 million (YoY +9.4%)
Full-year earnings forecast	Operating revenue ¥60,600 million / Operating Expenses ¥18,600 million / Operating profit ¥42,000 million / Ordinary income ¥47,200 million / Profit attributable to owners of the parent ¥32,700 million
Breakdown of Factors Affecting the Change	Factors Increase in operating revenue / Amount +¥200 million, Factors Increase in credit-related expenses / Amount -¥60 million, Factors Increase in other operating expenses / Amount −¥0.2 billion, Factors Increase in interest and dividends received, etc. / Amount +¥400 million, Factors Equity-method income (Intellix Holdings) / Amount +¥90 million, Factors Equity-method income (Nakanihon General Credit, equivalent to gain on bargain purchase) / Amount +¥100 million, Factors Gain on sale of cross-shareholdings / Amount +¥100 million, Factors Increase in income taxes, etc. / Amount −¥0.2 billion
Key KPIs	Indicator name Guarantee Obligations Outstanding / Value ¥21.5 trillion / Year on year against the same period last year +9.0%, Indicator name New guarantee execution amount / Value 4,886 Hundreds of millions of yen / Year on year against the same period last year +13.7%, Indicator name Number of new guarantees executed / Value 14,186 Engagements / Year on year against the same period last year Not disclosed, Indicator name Subrogation payment amount / Value ¥3,964 million / Year on year against the same period last year +12.6%, Indicator name Subrogation payment rate / Value 0.09 % / Year on year against the same period last year At approximately the same level as the previous year, Indicator name Recovery rate from collateral disposals / Value 71.2 % / Year on year against the same period last year Not disclosed, Indicator name Interest and dividends received, etc. / Value 15 Hundreds of millions of yen / Year on year against the same period last year +36.0%
Unit price and quantity metrics	Indicator name New guarantee execution amount / Value 4,886 Hundreds of millions of yen / Year on year against the same period last year +13.7%, Indicator name Number of new guarantees executed / Value 14,186 Engagements / Year on year against the same period last year Not disclosed, Indicator name Guarantee unit price / Value Higher / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business Outlook	Item Guarantee Obligations Outstanding / Fiscal year ending March 2026 ¥21.4 trillion / Fiscal year ending March 2027 ¥22.5 trillion, Item New guarantee execution amount / Fiscal year ending March 2026 19,194 Hundreds of millions of yen / Fiscal year ending March 2027 19,600 Hundreds of millions of yen, Item Subrogation payment amount / Fiscal year ending March 2026 165 Hundreds of millions of yen / Fiscal year ending March 2027 170 Hundreds of millions of yen, Item Collection of subrogation claims / Fiscal year ending March 2026 105 Hundreds of millions of yen / Fiscal year ending March 2027 110 Hundreds of millions of yen
Financial targets	ROE Target 14 % / Actual results 13.4 %
Annual Dividend	Annual dividend per share ¥123 / Interim ¥50 / End of period ¥73
Payout ratio	50
Acquisition of treasury shares	The company mentioned a policy of conducting share repurchases flexibly. The repurchase amount, number of shares and period were not disclosed.
Market Size / Share	Item New residential mortgage lending / Value ¥21 trillion per year, Item Outstanding private-sector residential mortgages / Value 210 Over ¥ trillion
New initiatives	New initiatives relating to residential mortgages with the Intellix Holdings Group and Rakuten Bank, Making Nakanihon General Credit Co., Ltd. an equity-method affiliate through the acquisition of its shares, Continuation of the support program for families raising children, Digital transformation through the Web Application Service (WSS) and My Page Service (ZEWS)

Items this document does not state (14)

Net SalesGross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planSegment resultsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In addition to higher revenue resulting from the steady level of guarantee obligations outstanding, non-operating income increased due to higher interest and dividends received and the recognition of equity-method income. Although operating expenses and credit-related expenses increased, profit rose.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.

Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.

Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.