ZENKOKU HOSHO (7164) Investor update summary

Business model and competitive position

• Mortgage guarantees are the core business; fees are tied to loan amount and term, with rising guarantee balances supporting recurring, stock-based revenue. Guarantee balance reached ¥20.4tn at Dec. 2025.

• Japan’s only independent mortgage-loan guarantee provider, partnering with 712 financial institutions as of Mar. 2025; independence supports broad partnerships and geographic risk diversification.

• 12 offices nationwide support local engagement; services include product briefings, training sessions and on-site consultations for partner institutions.

• More than 90% of financial institutions use guarantee companies for housing loans; the cited survey shows 92.3% use one.

Credit quality and interest-rate exposure

• FY2025 overdue guarantee balance ratio was 0.14%; overdue balances are defined as guarantees at least three payments past due.

• FY2025 mortgage guarantee payments were ¥9.3bn, with a 0.09% payment rate; collateral-sale recovery rate was 70.5%.

• For a ¥30mn, 35-year loan, a 0.5 percentage-point rate increase raises monthly repayments by roughly ¥7,000; the presentation expects limited impact on credit costs.

Financial performance and outlook

• FY2025 revenue rose 10.3% YoY to ¥56.972bn; operating profit increased 7.3% to ¥41.974bn and net profit rose 11.4% to ¥32.089bn.

• FY2026/3 forecast: revenue ¥59.2bn (+3.9%), operating profit ¥41.6bn (-0.9%) and net profit ¥31.2bn (-2.8%).

• FY2026/3 forecast assumptions include ¥21tn guarantee balance, 58,000 new guarantees, ¥17bn guarantee payments and ¥10.5bn recovery of subrogation claims.

• FY2026/3 targets include EPS of ¥233.77 and ROE of 14%.