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Financial results presentation8771eGuarantee,Inc.Financials (excluding banks)

Earnings Presentation Materials for the Interim Period of the Fiscal Year Ending March 2027

In the interim period of the fiscal year ending March 2027, guarantee obligations, revenue and profit exceeded the year-earlier period, and ordinary profit reached 49.2% of the full-year forecast. Meanwhile, the decline in guarantee fee rates and delays in establishing a management structure to support the increase in sales personnel remain challenges. The company indicated that it will prioritize improving guarantee fee rates, while accepting a certain degree of decline in the number of new contracts and the renewal rate going forward.

Worth reading
62In 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
7.2
Year-on-year change in ordinary profit (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationInterim period of the fiscal year ending March 2027 (cumulative 2Q)11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales5,635 Millions of yen+2.7%
Operating profit2,601 Millions of yen+3.5%
Ordinary income2,754 Millions of yen+7.2%
Net income1,853 Millions of yen
Gross Profit Margin73.6 %
Operating profit margin46.2 %
Selling, general and administrative expenses-1,543 Millions of yen
Full-year earnings forecast
Net Sales
11,900 Millions of yen
Operating profit
5,500 Millions of yen
Ordinary income
5,600 Millions of yen
Net income
3,800 Millions of yen
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 Sales47.3%
Operating profit47.3%
Ordinary income49.2%
Net income48.8%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Ordinary profit is progressing steadily at 49.2% of the full-year earnings forecast. The company is expected to achieve this for the 20th consecutive fiscal year.
New initiatives
  • Business alliance with Shonan Shinkin Bank
  • Preparations for the full-scale launch of the sales partner model
  • Strengthening the consulting capabilities of junior sales staff through the use of AI
  • Advancing a project for loan guarantees
  • Research into and consideration of expansion into overseas markets
Key KPIsA metric the company considers important as a management benchmark.
  • Guarantees¥9,549 100 million
    Year on year against the same period last year+9.9%
  • Guarantee balance¥29,136 100 million
  • Number of sales personnel (plan for end of the fiscal year ending March 2027)150～140
  • Unit price for junior employees¥50 10,000
    Year on year against the same period last yearUp from ¥350,000 at the end of April
  • Number of companies covered by guarantees58 10,000 companies
  • Number of companies reviewed annually36 10,000 companies
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Rate of quotation requests obtained23.7% (as of the end of September)
    Year on year against the same period last year26.3% at the end of April
  • Conversion Rate18.8% (as of the end of September)
    Year on year against the same period last year15.6% at the end of April
  • Unit price for junior employees¥50 10,000
    Year on year against the same period last yearUp from ¥350,000 for contracts from April to June
Medium-term management plan targets
Net sales / ordinary profitThe delay in meeting the performance targets has still not been resolved
Financial targets
ROE20%
ROIC20%
DOEContinuous improvement
Market Size / Share
Trade credit market sizeApproximately ¥216 trillion (TAM)
Indirect finance market sizeApproximately ¥596 trillion
Domestic market shareNo.1
Number of employees
Number of Employees194 people
As of31 March 2026
Changes and hiring plans during the periodSales personnel are expected to increase by approximately 30% year on year as of the fiscal year-end
Annual Dividend
Annual dividend per share84 Yen
Payout ratio
100% (guideline)
Acquisition of treasury shares
Buyback limitAcquisition limit: 3 million shares; acquisition amount limit: ¥3 billion
PeriodResolved on 30 October 2025. The company aims to reach a cumulative ¥10 billion by the end of the fiscal year ending March 2028
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredInterim period of the fiscal year ending March 2027 (cumulative 2Q)
Net Sales5,635 Millions of yen (YoY +2.7%)
Operating profit2,601 Millions of yen (YoY +3.5%)
Ordinary income2,754 Millions of yen (YoY +7.2%)
Net income1,853 Millions of yen
Gross Profit Margin73.6 %
Operating profit margin46.2 %
Selling, general and administrative expenses-1,543 Millions of yen
Full-year earnings forecastNet Sales 11,900 Millions of yen / Operating profit 5,500 Millions of yen / Ordinary income 5,600 Millions of yen / Net income 3,800 Millions of yen
Progress against full-year forecastNet Sales 47.3% / Operating profit 47.3% / Ordinary income 49.2% / Net income 48.8%
Self-assessment against the planOrdinary profit is progressing steadily at 49.2% of the full-year earnings forecast. The company is expected to achieve this for the 20th consecutive fiscal year.
Key KPIsIndicator name Guarantees / Value ¥9,549 100 million / Year on year against the same period last year +9.9%, Indicator name Guarantee balance / Value ¥29,136 100 million / Year on year against the same period last year Not disclosed, Indicator name Number of sales personnel (plan for end of the fiscal year ending March 2027) / Value 150～140 / Year on year against the same period last year Not disclosed, Indicator name Unit price for junior employees / Value ¥50 10,000 / Year on year against the same period last year Up from ¥350,000 at the end of April, 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 reviewed annually / Value 36 10,000 companies / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Rate of quotation requests obtained / Value 23.7% (as of the end of September) / Year on year against the same period last year 26.3% at the end of April, Indicator name Conversion Rate / Value 18.8% (as of the end of September) / Year on year against the same period last year 15.6% at the end of April, Indicator name Unit price for junior employees / Value ¥50 10,000 / Year on year against the same period last year Up from ¥350,000 for contracts from April to June
Number of employeesNumber of Employees 194 people / As of 31 March 2026 / Changes and hiring plans during the period Sales personnel are expected to increase by approximately 30% year on year as of the fiscal year-end
Medium-term management plan targetsNet sales / ordinary profit The delay in meeting the performance targets has still not been resolved / Target fiscal year Not disclosed
Financial targetsROE 20% / ROIC 20% / DOE Continuous improvement
Annual DividendAnnual dividend per share 84 Yen / Breakdown Not disclosed
Payout ratio100% (guideline)
Acquisition of treasury sharesBuyback limit Acquisition limit: 3 million shares; acquisition amount limit: ¥3 billion / Period Resolved on 30 October 2025. The company aims to reach a cumulative ¥10 billion by the end of the fiscal year ending March 2028
Market Size / ShareTrade credit market size Approximately ¥216 trillion (TAM) / Indirect finance market size Approximately ¥596 trillion / Domestic market share No.1
New initiativesBusiness alliance with Shonan Shinkin Bank, Preparations for the full-scale launch of the sales partner model, Strengthening the consulting capabilities of junior sales staff through the use of AI, Advancing a project for loan guarantees, Research into and consideration of expansion into overseas markets
Items this document does not state (9)
Results for the three months of the current quarterSegment resultsBreakdown of Factors Affecting the ChangeNumber of stores and locationsAssumptions Underlying the Business OutlookRisk 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. The gross profit margin improved due to a decrease in provisions for guarantee performance and other factors, while selling, general and administrative expenses increased due to higher headcount and base-pay increases. Ordinary profit increased due to higher interest income resulting from rising interest rates and other factors, as well as an increase in the share of profit or loss of investments accounted for using the equity method. Meanwhile, the guarantee fee rate has been trending downward because the development of the management structure has not kept pace with the increase in sales personnel.

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Earnings Presentation Materials for the Interim Period of the Fiscal Year Ending March 2027 | eGuarantee,Inc. (8771) timely disclosure | Komori