Zenkoku Hosho Co., Ltd. · TSE:7164
Zenkoku Hosho — H1 FY2027/3 Earnings Presentation
25 slides from Zenkoku Hosho's earnings presentation, Nov 5, 2026
Slide 1: Financial Results for the Six Months Ended September 30, 2026
Financial Results for the Six Months Ended September 30, 2026 November 2026 ZENKOKU HOSHO Co., Ltd. Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original
Slide 2: Executive Summary
Executive Summary ✓ Due to the steady accumulation of outstanding guarantee exposure, operating revenue increased (YoY +3.0%) ✓ Due to increases in interest income, dividend income, etc., and the recording of share of profit of entities accounted for using Financial summary equity method, non-operat
Slide 3: Contents
CONTENTS 1 Overview of Financial Results Results of the Initiatives for the Fiscal Year 2 Ending March 31, 2027 3 Reference Materials 3
Slide 4: Summary of Business Results for the Six Months Ended September 30, 2026 (P/L)
Summary of Business Results for the Six Months Ended September 30, 2026 (P/L) ✓ Despite an increase in other operating expenses, profit increased due to increases in operating revenue and non-operating income (Unit: million yen) Outstanding guarantee exposure FY2026/3 FY2027/3 YoY 2Q 2Q Operating re
Slide 5: Main Factors for Changes in Profit Attributable to Owners of Parent
Main Factors for Changes in Profit Attributable to Owners of Parent ✓ Following the introduction of the Employee Stock Ownership Plan (J-ESOP-RS), a provision was recorded in a lump sum for benefit payments covering a five-year period, resulting in an increase in operating expenses ✓ Profit increase
Slide 6: Forecast of Earnings for the Fiscal Year Ending March 31, 2027
Forecast of Earnings for the Fiscal Year Ending March 31, 2027 (Announced on May 8, 2026) ✓ We plan to achieve increases in both revenue and profit through the accumulation of outstanding guarantee exposure, as well as the leveling off of the pace of increase in expenses related to credit (Unit: mil
Slide 7: Summary of Business Results for the Six Months Ended September 30, 2026 (B/S)
Summary of Business Results for the Six Months Ended September 30, 2026 (B/S) ✓ Investments and other assets increased due to the purchase of bonds and other instruments (Unit: million yen) Asset Liabilities FY2027/3 FY2027/3 FY2026/3 Change FY2026/3 Change 2Q 2Q Current assets 130,927 131,533 0.5%
Slide 8: Impact of Rising Interest Rates on the Company
Impact of Rising Interest Rates on the Company ✓ Impact on expenses related to credit is limited ✓ Meanwhile, investment income is expected to increase, resulting in an overall positive impact Impact on the Company (1-5 years) ✓ As interest rates rise, some financial institutions are once again adop
Slide 9: Contents
CONTENTS 1 Overview of Financial Results Results of the Initiatives for the Fiscal Year 2 Ending March 31, 2027 3 Reference Materials 9
Slide 10: Status of New Guarantees Granted (Organic Growth)
Status of New Guarantees Granted (Organic Growth) ✓ As a result of efforts to expand use among regional banks and shinkin banks, which are increasing their presence in the housing loan market, the amount of new guarantees granted remained strong Amount of new guarantees granted (Figures in parenthes
Slide 11: The Housing Market and the Housing Loan Market
The Housing Market and the Housing Loan Market ✓ While the number of used housing transactions decreased mainly for condominiums, the number of new housing starts exceeded the previous year’s level, and the housing loan market remained flat Number of New Housing Starts Average Price of Newly Built D
Slide 12: Acquisition of Outstanding Guarantee Exposure from the Existing Housing Loan Market (Inorganic Growth)
Acquisition of Outstanding Guarantee Exposure from the Existing Housing Loan Market (Inorganic Growth) ✓ We made Nakanihon Sogo Shinyo Co., Ltd. an equity-method affiliate in June 2026 ✓ We have a robust pipeline of M&A candidates, and will strive to achieve further results during the current fiscal
Slide 13: Overview of Inorganic Growth Methods
Overview of Inorganic Growth Methods Organic growth Inorganic growth New guarantees granted M&As ABLs, RMBS Loss compensation*1 Inorganic growth: 7 companies 19 cases 3 cases cumulative acquisitions ー 1,520.7 billion yen 2,685.3 billion yen 377.9 billion yen (As of September 30, 2026) Guarantee entr
Slide 14: Status of Outstanding Guarantee Exposure
Status of Outstanding Guarantee Exposure ✓ Both new guarantees granted (organic growth) and acquisition from the existing housing loan market (inorganic growth) remained strong ✓ We will strive to achieve further results toward the end of the fiscal year, when needs for external transfer of risks as
Slide 15: Detail of Outstanding Guarantee Exposure
Detail of Outstanding Guarantee Exposure (Unit:100 million yen) 2024/6 2024/9 2024/12 2025/3 2025/6 2025/9 2025/12 2026/3 2026/6 2026/9 ZENKOKU HOSHO 164,982 166,756 168,667 170,766 172,469 174,507 177,144 179,173 181,538 184,486 Subsidiaries and 3,204 8,623 8,472 11,414 11,213 11,004 10,820 10,595
Slide 16: Status of Subrogation and Collected Right to Reimbursement
Status of Subrogation and Collected Right to Reimbursement Subrogation Collected right to reimbursement ✓ The amount repaid in subrogation remained at roughly the same ✓ The collateral disposal recovery rate has remained at a high level, level as the previous year, given the continued favorable part
Slide 17: Unemployment Rate, Jobs-to-applicants Ratio, Number of Corporate Bankruptcies
Unemployment Rate, Jobs-to-applicants Ratio, Number of Corporate Bankruptcies Unemployment Rate / Jobs-to-applicants Ratio Number of Corporate Bankruptcies ✓ Labor shortages persist in the labor market, and signs of ✓ The number is trending upward mainly due to sustained high prices deterioration ha
Slide 18: Improvement in Asset Management Yields
Improvement in Asset Management Yields ✓ In a world with positive interest rates, interest income and dividend income are trending upward, and yields are improving through the replacement of held-to-maturity bonds upon redemption ✓ Bonds held by the Company constitute a portfolio with diversified re
Slide 19: Capital Policy for the Fiscal Year Ending March 31, 2027
Capital Policy for the Fiscal Year Ending March 31, 2027 ✓ Capital is prioritized for growth investment, with unused funds flexibly allocated for share buybacks Forecast for dividends: 16.3 billion yen (FY2027/3) ✓ Based on the outlook for future growth investment, we announced share buybacks of up
Slide 20: Shareholder Returns
Shareholder Returns ✓ We maintained the dividend payout ratio of 50% and ensured stable and consistent shareholder returns ✓ With share buybacks of up to 8.0 billion yen, the total return ratio is expected to be approximately 74% Trend in Dividend per Share Total Shareholder Returns Dividend per sha
Slide 21: Contents
CONTENTS 1 Overview of Financial Results Results of the Initiatives for the Fiscal Year 2 Ending March 31, 2027 3 Reference Materials 21
Slide 22: Corporate Profile
Corporate Profile Company name ZENKOKU HOSHO Co., Ltd. Founded February 1981 Business activities Credit guarantee business focusing on housing loans Number of locations 12 locations (main branch, sales offices) Number of employees Consolidated: 378 / Non-consolidated: 319 (As of March 31, 2026) Prim
Slide 23: Overview of Group Companies
Overview of Group Companies Company name Zenkoku Business Partner, K.K. Company name Tsukuba Shinyo Hosho Co., Ltd. Headquarters Koto-ku, Tokyo Headquarters Tsukuba City, Ibaraki Prefecture Business activities Contracted administrative services Business activities Credit guarantee services Company n
Slide 24: Business Model of ZENKOKU HOSHO
Business Model of ZENKOKU HOSHO ✓ Solve various issues faced by financial institutions as the only and largest independent housing loan guarantee company in Japan Size of private-sector housing loan market ZENKOKU HOSHO undertakes joint guarantees for housing loan guarantees New loan market Outstand
Slide 25: Disclaimer and Notes Regarding Future Prospects
Disclaimer and Notes Regarding Future Prospects Disclaimer This material is prepared by ZENKOKU HOSHO Co., Ltd. (hereinafter, “Zenkoku Hosho”) with the aim of helping investors understand Zenkoku Hosho and is provided purely for reference. The information contained in the material is prepared based