Komori
Earnings presentation8771eGuarantee,Inc.Financials (excluding banks)

Full-year earnings briefing transcript for the fiscal year ending March 2026

In FY2026, revenue and profit increased as guarantee obligations expanded, and the company broadly achieved its initial forecasts. However, profit margins declined, the targets in the medium-term management plan were delayed by approximately 1.5 years, and the company indicated that it would raise its target payout ratio to approximately 100% while pursuing new growth initiatives, including loan guarantees and sales partners.

Worth reading
61In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
7.9
% (year-on-year increase in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings briefing transcriptFiscal year ending March 2026, full year12 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥11,029 million+7.9%
Operating profit¥5,201 million+1.9%
Ordinary income¥5,302 million+1.9%
Net income¥3,589 million
Gross Profit Margin73.2%
Operating profit margin47.2%
Selling, general and administrative expenses¥2,871 million expense; shown as ▲2,871 in the materials
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥11,900 million
Operating profit
¥5,500 million
Ordinary income
¥5,600 million
EPS
¥84
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Fiscal year ending March 2026
Net Sales98%
Operating profit100%
Ordinary income100%
Net income101%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Broadly in line with the budget
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Increases in guarantee obligations and new contracts, demand for outsourcing, lower guarantee fee rates, higher re-guarantee fee rates, increased guarantee payments, growth in the sales workforce, and reductions in overtime costs through system implementation
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Maintain the contract renewal rate among existing customers
  • Expand sales resources and bring them up to full productivity quickly
  • 7,000–8,000 applicants annually, with a hiring rate of 1%
New initiatives
  • Establish a sales structure through sales-oriented partner companies
  • Launch and expand loan guarantees
  • Sales support and training using AI and IT
  • Expand matching-based partnerships with credit unions and other institutions
  • Research and assess expansion into overseas markets
Key KPIsA metric the company considers important as a management benchmark.
  • Guarantee Obligations¥911,349 million
    Year on year against the same period last year+10.3%
  • Guarantee balance¥26,443 hundred million
  • Number of companies screened annually36 10,000 companies
  • Number of companies covered by guarantees58 10,000 companies
  • Number of information items registered per day260 10,000 items
  • Contract renewal rateMore than 90%
  • Sales personnel113 people
    Year on year against the same period last year+19.0%
  • Sales staff turnover rate7〜8%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Quote request acquisition rate (new, year 2)26.3%
  • Quote request acquisition rate (years 3–10)24.7%
  • Conversion rate (new, year 2)15.6%
  • Conversion rate (years 3–10)16.0%
  • Average unit price (new, year 2)¥35 10,000
  • Average unit price (years 3–10)¥75 10,000
Medium-term management plan targets
  • Consolidated Net Sales
    Target fiscal yearFiscal year ending March 2028
    Target value20,000
    Actual resultsFY2026 actual: ¥11,029 million; approximately 1.5 years behind plan
  • Consolidated ordinary income
    Target fiscal yearFiscal year ending March 2028
    Target value10,000
    Actual resultsFY2026 actual: ¥5,302 million; approximately 1.5 years behind plan
Financial targets
  • ROE
    Target value20%
  • ROIC
    Target value20%
  • Equity ratio
    Actual value68.8%
Market Size / Share
The materials state that the company ranks approximately 15th–20th among listed companies by operating margin and 3rd among listed companies for the duration of sustained revenue and profit growth. Market size and market share themselves are Not disclosed
Number of employees
Sales workforce: 113 people (as of the end of FY2026, up 19% year on year)
Payout ratio
Approximately 100% (previous actual: 51.4%)
Acquisition of treasury shares
The materials state that cash and cash equivalents and net assets declined following the repurchase, but the amount, number of shares and period for the repurchase are Not disclosed
Contents of this document
ItemDetails
Document typeEarnings briefing transcript
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥11,029 million (YoY +7.9%)
Operating profit¥5,201 million (YoY +1.9%)
Ordinary income¥5,302 million (YoY +1.9%)
Net income¥3,589 million
Gross Profit Margin73.2%
Operating profit margin47.2%
Selling, general and administrative expenses¥2,871 million (expense; shown as ▲2,871 in the materials)
Full-year earnings forecastFiscal year ending March 2027 Net Sales ¥11,900 million / Operating profit ¥5,500 million / Ordinary income ¥5,600 million / EPS ¥84
Progress against full-year forecastFiscal year ending March 2026 Net Sales 98% / Operating profit 100% / Ordinary income 100% / Net income 101%
Self-assessment against the planBroadly in line with the budget
Breakdown of Factors Affecting the ChangeIncreases in guarantee obligations and new contracts, demand for outsourcing, lower guarantee fee rates, higher re-guarantee fee rates, increased guarantee payments, growth in the sales workforce, and reductions in overtime costs through system implementation
Key KPIsGuarantee Obligations ¥911,349 million, Guarantee balance ¥26,443 hundred million, Number of companies screened annually 36 10,000 companies, Number of companies covered by guarantees 58 10,000 companies, Number of information items registered per day 260 10,000 items, Contract renewal rate More than 90%, Sales personnel 113 people, Sales staff turnover rate 7〜8%
Unit price and quantity metricsQuote request acquisition rate (new, year 2) 26.3%, Quote request acquisition rate (years 3–10) 24.7%, Conversion rate (new, year 2) 15.6%, Conversion rate (years 3–10) 16.0%, Average unit price (new, year 2) ¥35 10,000, Average unit price (years 3–10) ¥75 10,000
Number of employeesSales workforce: 113 people (as of the end of FY2026, up 19% year on year)
Assumptions Underlying the Business OutlookMaintain the contract renewal rate among existing customers, Expand sales resources and bring them up to full productivity quickly, 7,000–8,000 applicants annually, with a hiring rate of 1%
Medium-term management plan targetsTarget fiscal year Fiscal year ending March 2028 / Item Consolidated Net Sales / Target value ¥20,000 million / Actual results FY2026 actual: ¥11,029 million; approximately 1.5 years behind plan, Target fiscal year Fiscal year ending March 2028 / Item Consolidated ordinary income / Target value ¥10,000 million / Actual results FY2026 actual: ¥5,302 million; approximately 1.5 years behind plan
Financial targetsIndicator ROE / Target value 20%, Indicator ROIC / Target value 20%, Indicator Equity ratio / Actual value 68.8%
Payout ratioApproximately 100% (previous actual: 51.4%)
Acquisition of treasury sharesThe materials state that cash and cash equivalents and net assets declined following the repurchase, but the amount, number of shares and period for the repurchase are Not disclosed
Market Size / ShareThe materials state that the company ranks approximately 15th–20th among listed companies by operating margin and 3rd among listed companies for the duration of sustained revenue and profit growth. Market size and market share themselves are Not disclosed
New initiativesEstablish a sales structure through sales-oriented partner companies, Launch and expand loan guarantees, Sales support and training using AI and IT, Expand matching-based partnerships with credit unions and other institutions, Research and assess expansion into overseas markets
Items this document does not state (8)
Results for the three months of the current quarterSegment resultsNumber of stores and locationsRisk amount incorporated into the outlookAnnual DividendCapital 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.

The increase in guarantee obligations and demand for outsourced credit management services, driven by labor shortages and higher wages, contributed to revenue growth. However, profit margins declined due to higher re-guarantee fee rates accompanying deterioration in loss ratios at securitization destinations, an increase in guarantee payments for guarantees underwritten in-house, and growth in the sales workforce. The delay in the medium-term plan was attributed primarily to the failure to increase the sales workforce as planned in the first year and a greater-than-expected burden from training and managing new employees.

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Full-year earnings briefing transcript for the fiscal year ending March 2026 | eGuarantee,Inc. (8771) timely disclosure | Komori