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Financial results presentation8771eGuarantee,Inc.Financials (excluding banks)

First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, guarantee obligations, revenue, operating income and ordinary income exceeded the year-earlier period. Revenue and guarantee obligations reached record highs. The company also increased its sales workforce, expanded the use of AI and systems, and advanced partnerships with new financial institutions and sales partners.

Worth reading
74In 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
2800
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,800 million+2.1%
Operating profit¥1,334 million+5.7%
Ordinary income¥1,412 million+9.1%
Net income¥953 million
Selling, general and administrative expenses¥740 million expenses: ¥740 million
Gross Profit Margin
Rate74.1%
Year-on-year change (points)0.0pt
Operating profit margin
Rate47.6%
Year-on-year change (points)+1.5pt
Results for the three months of the current quarterRevenue: ¥2,800 million; gross profit: ¥2,074 million; operating income: ¥1,334 million; ordinary income: ¥1,412 million; net income: ¥953 million; guarantee obligations: ¥931.7 billion
Full-year earnings forecast
Net Sales
¥11,900 million
Operating profit
¥5,500 million
Ordinary income
¥5,600 million
Net income
¥3,800 million
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。
Net Sales23.5%
Operating profit24.3%
Ordinary income25.2%
Net income25.1%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue and profit are tracking in line with the plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Growth in new contracts and the accumulation of contracts
  • Lower personnel expenses due to differences in the timing of bonus paymentsDown ¥37 million year on year
  • Higher interest income due to rising interest rates and other factors
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Average guarantee fee rate
    AssumptionsExpected to remain broadly flat while maintaining the level at the end of the previous fiscal year
  • Bankruptcy environment
    AssumptionsExpected to remain stable
New initiatives
  • Establishment of quotation meetings where sales and screening staff discuss proposals
  • Introduction of an AI system and full-scale operation of a sales KPI system
  • Appointment of 3 AI specialists
  • Business partnerships with Tama Shinkin Bank and Kyoto Chuo Shinkin Bank
  • Expansion of the sales-oriented partner model
  • Promotion of multiple projects aimed at loan guarantees
Key KPIsA metric the company considers important as a management benchmark.
  • Guarantees¥9,317 100 million
    Year on year against the same period last year+9.9%
  • Cumulative guarantee balance¥27,605 100 million
  • Contract renewal rateMore than 90%
  • Sales workforce (forecast at the end of the current fiscal year)Approximately 30% higher than the previous fiscal year
  • Number of companies covered by guarantees58 10,000 companies
  • Number of companies screened annually36 10,000 companies
  • Number of information items registered per day260 10,000 items
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Rate of quotation requests obtained
    New, Year 227.5%
    Years 3-1022.7%
  • Closing Rate
    New, Year 220.6%
    Years 3-1017.7%
  • Unit price
    New, Year 2¥390,000
    Years 3-10¥900,000
Medium-term management plan targets
ROE20%
ROIC20%
DOEContinuous improvement
Comparison with actual resultsROE and ROIC in the current fiscal year's forecast are expected to increase toward the medium-term management plan target of 20%.
Financial targets
ROE
Target20%
Actual results18.6% (forecast for the fiscal year ending March 2027)
ROIC
Target20%
Actual results18.7% (forecast for the fiscal year ending March 2027)
DOEContinuous improvement
Market Size / Share
  • Market size of accounts receivable transactionsApproximately ¥219 trillion
  • Market size of indirect financing, including lendingApproximately ¥543 trillion
  • Domestic market share of receivables guarantee servicesNo.1
Number of employees
Number of Employees194 people
As ofAs of 31 March 2026
Changes during the period and hiring planThe sales workforce is expected to be approximately 30% higher than in the previous fiscal year at the end of the current fiscal year. The company newly hired 3 AI specialists.
Annual Dividend
Annual dividend per share¥84 (forecast)
Payout ratio
Approximately 100%
Acquisition of treasury shares
Amount under the acquisition limitApproximately ¥4 billion remaining under the acquisition authorization (policy to acquire ¥10 billion cumulatively from the fiscal year ending March 2026 through the fiscal year ending March 2028)
Number of SharesMaximum acquisition of 3 million shares
PeriodThrough the end of the fiscal year ending March 2028
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥2,800 million (YoY +2.1%)
Operating profit¥1,334 million (YoY +5.7%)
Ordinary income¥1,412 million (YoY +9.1%)
Net income¥953 million
Gross Profit MarginRate 74.1% / Year-on-year change (points) 0.0pt
Operating profit marginRate 47.6% / Year-on-year change (points) +1.5pt
Selling, general and administrative expenses¥740 million (expenses: ¥740 million)
Results for the three months of the current quarterRevenue: ¥2,800 million; gross profit: ¥2,074 million; operating income: ¥1,334 million; ordinary income: ¥1,412 million; net income: ¥953 million; guarantee obligations: ¥931.7 billion
Full-year earnings forecastNet Sales ¥11,900 million / Operating profit ¥5,500 million / Ordinary income ¥5,600 million / Net income ¥3,800 million
Progress against full-year forecastNet Sales 23.5% / Operating profit 24.3% / Ordinary income 25.2% / Net income 25.1%
Self-assessment against the planRevenue and profit are tracking in line with the plan
Breakdown of Factors Affecting the ChangeFactors Growth in new contracts and the accumulation of contracts / Amount Not disclosed, Factors Lower personnel expenses due to differences in the timing of bonus payments / Amount Down ¥37 million year on year, Factors Higher interest income due to rising interest rates and other factors / Amount Not disclosed
Key KPIsIndicator name Guarantees / Value ¥9,317 100 million / Year on year against the same period last year +9.9%, Indicator name Cumulative guarantee balance / Value ¥27,605 100 million / Year on year against the same period last year Not disclosed, Indicator name Contract renewal rate / Value More than 90% / Year on year against the same period last year Not disclosed, Indicator name Sales workforce (forecast at the end of the current fiscal year) / Value Approximately 30% higher than the previous fiscal year / Year on year against the same period last year Not disclosed, Indicator name Number of companies covered by guarantees / Value 58 10,000 companies / Year on year against the same period last year Not disclosed, Indicator name Number of companies screened annually / Value 36 10,000 companies / Year on year against the same period last year Not disclosed, Indicator name Number of information items registered per day / Value 260 10,000 items / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Rate of quotation requests obtained / New, Year 2 27.5% / Years 3-10 22.7%, Indicator name Closing Rate / New, Year 2 20.6% / Years 3-10 17.7%, Indicator name Unit price / New, Year 2 ¥390,000 / Years 3-10 ¥900,000
Number of employeesNumber of Employees 194 people / As of As of 31 March 2026 / Changes during the period and hiring plan The sales workforce is expected to be approximately 30% higher than in the previous fiscal year at the end of the current fiscal year. The company newly hired 3 AI specialists.
Assumptions Underlying the Business OutlookItem Average guarantee fee rate / Assumptions Expected to remain broadly flat while maintaining the level at the end of the previous fiscal year, Item Bankruptcy environment / Assumptions Expected to remain stable
Medium-term management plan targetsROE 20% / ROIC 20% / DOE Continuous improvement / Comparison with actual results ROE and ROIC in the current fiscal year's forecast are expected to increase toward the medium-term management plan target of 20%.
Financial targetsROE Target 20% / Actual results 18.6% (forecast for the fiscal year ending March 2027) / ROIC Target 20% / Actual results 18.7% (forecast for the fiscal year ending March 2027) / DOE Continuous improvement
Annual DividendAnnual dividend per share ¥84 (forecast) / Interim and Year-End Breakdown Not disclosed
Payout ratioApproximately 100%
Acquisition of treasury sharesAmount under the acquisition limit Approximately ¥4 billion remaining under the acquisition authorization (policy to acquire ¥10 billion cumulatively from the fiscal year ending March 2026 through the fiscal year ending March 2028) / Number of Shares Maximum acquisition of 3 million shares / Period Through the end of the fiscal year ending March 2028
Market Size / ShareItem Market size of accounts receivable transactions / Value Approximately ¥219 trillion, Item Market size of indirect financing, including lending / Value Approximately ¥543 trillion, Item Domestic market share of receivables guarantee services / Value No.1
New initiativesEstablishment of quotation meetings where sales and screening staff discuss proposals, Introduction of an AI system and full-scale operation of a sales KPI system, Appointment of 3 AI specialists, Business partnerships with Tama Shinkin Bank and Kyoto Chuo Shinkin Bank, Expansion of the sales-oriented partner model, Promotion of multiple projects aimed at loan guarantees
Items this document does not state (6)
Segment resultsNumber of stores and locationsRisk amount incorporated into the outlookCapital 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.

Revenue increased due to growth in new contracts and the accumulation of contracts. Operating income benefited from personnel expenses being ¥37 million lower year on year due to differences in the timing of bonus payments, while ordinary income benefited from higher interest income due to rising interest rates and other factors.

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First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027 | eGuarantee,Inc. (8771) timely disclosure | Komori