イー・ギャランティ（8771） – Financial Results For the Fiscal Year Ending March 31, 2022 Supplementary Briefing Materials

Financial Results For the Fiscal Year Ending March 31, 2022 Supplementary Briefing Materials May 13, 2022eGuarantee, Inc. （TSE Prime 8771）This presentation includes forward looking statements that reflect management’s current assumptions and expectations offuture events, and accordingly, they are inherently susceptible to uncertainties and changes in circumstances and are notguarantees of future performance. Actual results may differ materially, for a wide range of possible reasons, including generalindustry and market conditions and general international economic conditions. In light of the many risks and uncertainties, youare advised not to put undue reliance on these statements . The management targets included in this presentation are notprojections, and do not represent management’s current estimates of future performance. Rather, the represent targets thatmanagement strive to achieve through the successful implementation of the Company’s business strategies. The Company maybe unsuccessful in implementing its business strategies, and management may fail to achieve its targets. The Company is underno obligation and expressly disclaims any such obligation to update or alter its forward looking statements.Copyright © 2022 eGuarantee, Inc. All rights reserved.1. Summary of Financial Results for the Fiscal Year Ending March 31, 20222. Key Measures for the Fiscal Year Ending March 31, 2023Copyright © 2022 eGuarantee, Inc. All rights reserved.1-1 Balance of GuaranteeGuarantee obligations amounted to 831.5 billion yen (up 30.5% year on year)The number of new contracts increased by developing new products and offering them promptly to meet customers’ growing needs due to the impact of the COVID-19 infection and other factors in the midst of restricted sales activities caused by the repeated declaration of a state of emergency. And due to increased underwriting for low-risk contracts with large balances , guarantee obligations amounted to 831.5 billion yen (up 30.5% year on year), guarantee liabilities were 582.2 billion yen (up20.7% year on year)※In addition, the guarantee obligations describes the total of the guarantee limits set for each covered company of the guarantee (if covered company of the guarantee cannot be specified, the guarantee limits set for each contractee).※Reference Guarantee liabilities amount change(582.2 billion yen・ Up 20.7% year-on-year)582.2 523.7 482.2 439.1 435.7 410.2 388.7 365.2 345.3 318.1 298.7 278.9 261.5 600550500450400350300250200150End ofMar.2016End ofSep.2016End ofMar.2017End ofSep.2017End ofMar.2018End ofSep.2018End ofMar.2019End ofSep.2019End ofMar.2020End ofSep.2020End ofMar.2021End ofSep.2021End ofMar.2022（billion yen）Copyright © 2022 eGuarantee, Inc. All rights reserved.21-2 Summary of Financial Results for the Fiscal Year Ending March 31, 2022FY3 / 21FY3 / 22Year-over-yearRate of increase or decrease（Million yen）Net sales7,1947,894＋９．７％Although the increase in the number of contracts resulted in a steady increase in the amount of guaranteed liabilities, the average guarantee fee rate declined due to a significant decrease in the number of bankruptcies, contrary to expectations, resulting in an achievement rate of 92.9% of net sales. On the other hand, the cost of sales ratio improved (25.2% in FY 2021/3 → 21.2% in FY 2022/3) due to a decrease in the number of bankruptcies and other factors, and all profit categories achieved the forecasts.Gross profit5,3786,224＋15.7％■ Consolidated earnings forecast for FY3 / 22Operating profit3,0883,732＋20.8％Ordinary profit3,1083,760＋21.0％Profit attributable to owners of parent2,0042,463＋22.9％FY3 / 22Earnings ForecastsFY3 / 22Achievement rate8,500million yen3,720million yen3,750million yen2,400million yen92.9 %100.3 ％100.3 %102.6%Net salesOperating profitOrdinary profitProfit attributable to owners of parentCopyright © 2022 eGuarantee, Inc. All rights reserved.31-3 Performance TrendsSales and profits increased for the 20th consecutive year in the FY3 / 22. Sales and profits are expected to increase for the 21st consecutive year in the FY3 / 23.Net salesOrdinary income85007500650055004500350025001500500-500Net sales(Million yen)02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 22/3Forecast-500Ordinary profit (Million yen）Copyright © 2022 eGuarantee, Inc. All rights reserved.44500400035003000250020001500100050001-４ Consolidated balance sheetAssetFY3 / 21FY3 / 22LiabilitiesFY3 / 21FY3 / 22current assetsCash and cash equivalentsPrepaid expensesSecuritiesOtherFixed assetsTangible fixed assetsIntangible fixed assetsInvestment securitiesOtherTotal assets17,08516,056793-2365,4841,3851113,426562 22,570（Million yen）• Current assets increased by 15.3% (YoY).This is mainly due to an increase in cash and deposits of 1,238 million yen. • Non-current assets increased by 1.4%(YoY) .This is mainly due to an increase in investments in other securities of subsidiaries and associates of 14 million yen.• Current liabilities increased by 2.9% (YoY) .This is mainly due to an increase advances received of 212 million yen.• Total net assets increased by 14.7% (YoY) . This is mainly due to an increase in share capital and capital surplus of 412 million yen.19,69517,2959741,2002265,5601,3813,426628 25,256Current liabilitiesAllowance for doubtful accountsAdvances receivedIncome taxes payableOtherFixed liabilitiesLong-term accounts payableShareholder’s equityCommon stockAdditional paid-in capitalRetained earningsTreasury stockShare-purchase warrantsEquity attributable tonon-controlling interestsEquityTotal Equity andliabilities5,2693423,6649343291151155,38415,8763,0972,50710,27201471,16117,18622,570125Total liabilitiesEquityFY3 / 21FY3 / 225,4234333,8776994141151155, 53918,1573,5092,91911,72901551,40319,71625,256Copyright © 2022 eGuarantee, Inc. All rights reserved.51-５ Average Guarantee Rate TrendsIn the FY3 / 22 , the average guarantee rate declined to 1.46% due to the fact that the number of bankruptcies remained at a historically low level for the first time in half a century and due to increased underwriting for low-risk contracts with large balances .1.78%6001.66%1.62% 1.62%1.57%1.53% 1.51%1.46% 1.44%1.63%1.58%1.53%1.46%1.50%number of bankruptcies（Teikoku Databank Survey）Moving average ofbankruptcies (6 months)Average guarantee fee rate3.00%2.50%2.00%1.00%0.50%0.00%Copyright © 2022 eGuarantee, Inc. All rights reserved.610009008007005004003002001000（case）1-6 Consolidated Financial Forecast for the FY 3/23FY 3/23Consolidated Financial ForecastYear-on-year rate of changeNet salesOperating profitOrdinary profitProfit attributable to owners of parent8,800 million yen4,150 million yen4,200 million yen2,750 million yen+11.5%+11.2%+11.7%+11.6%◆ Net sales will increase due to a steady increase in the amount of guarantee liabilities.In an uncertain economic climate, the amount of guarantee liabilities is expected to continue to grow steadily against abackground of increasing need for guarantees. In addition, the number of bankruptcies is expected to increase from thesecond half ofthe fiscal year, when virtually interest-free and unsecured loans by government-affiliated financialinstitutions are set to expire, and guarantee fee rates are expected to rise.◆ Cost of sales and expenses will increase, but double-digit growth will be maintained.Cost to income ratio is expected to improve in the first half due to a decrease in bankruptcies in FY3/22, but it isexpected to deteriorate in the second half due to an increase in bankruptcies. In addition, although personnel expenseswill increase due to a significant increase in personnel, the SG & A ratio will be kept at the same level as in FY3 / 22 byreducing expenses, etc., to secure double-digit profit growth.Copyright © 2022 eGuarantee, Inc. All rights reserved.71-7 Dividend PolicyWe recognize that returning profits to shareholders is one of its most important management tasks and implements a dividend policy that reflects the Company’s performance, taking into account the need to strengthen its financial position and enhance internal reserves for active business development. Based on this policy, and in consideration of recent performance trends, the annual dividend for the fiscal year ending March 31, 2022 will be 26 yen.3,0002,5001,5001,000Profit attributable to owners of parent2,000Annual dividends5002.54.375 5.53.1258.57141311.251026223025201510500（million yen）11/312/313/314/315/316/317/318/319/320/321/322/3（yen）(Index is shown considered the stock split before FY18/3 ）Copyright © 2022 eGuarantee, Inc. All rights reserved.81-8 Main management index■ Sales ordinary income ratio■ Net assets per share■ Capital adequacy ratio400387.6247.6347.1970.370.371.946.243.2300271.9450403020（％）80706050403020100（％）2001000（yen）FY 3/20 FY 3/21 FY 3/22FY 3/20 FY 3/21 FY 3/22FY 3/20FY 3/21FY 3/22Copyright © 2022 eGuarantee, Inc. All rights reserved.91-9 Distribution of share ownershipIndividualand OthersOther Domestic CorporationFinancial InstitutionSecurities0.8Foreign CorporationFY 3/2013.3734.4232.0119.41FY 3/2117.7523.5728.1629.331.191.02FY 3/2217.6323.0129.7528.59（％）0102030405060708090100Copyright © 2022 eGuarantee, Inc. All rights reserved.10Shareholder nameNumber of shares heldPercentage of shares held1-10 Major ShareholdersThe Master Trust Bank of Japan ,Ltd (TRUST ACCOUNT)Custody Bank of Japan, Ltd.(TRUST ACCOUNT)ITOCHU CorporationMasanori EtoTeikoku Databank, Ltd.SSBTC CLIENT OMNIBUS ACCOUNTNTT DATA CorporationBBH FOR MATTHEWS JAPAN FUNDTHE BANK OF NEW YORK MELLON 140051THE BANK OF NEW YORK 1336528,124,8006,336,8003,631,9003,010,2002,870,4001,901,4481,440,0001,008,000986,500826,40017.34%13.52%7.75%6.42%6.12%4.05%3.07%2.15%2.10%1.76%Copyright © 2022 eGuarantee, Inc. All rights reserved.11２．Key Measures for the Fiscal Year Ending March 31, 2023Copyright © 2022 eGuarantee, Inc. All rights reserved.Changes in the Number of Domestic Bankruptcies (Monthly)the Number of Domestic Bankruptcies（Teikoku Databank Survey）1,4001,2001,0008006004002000Apr-07（case）Apr-08Apr-09Apr-10Apr-11Apr-12Apr-13Apr-14Apr-15Apr-16Apr-17Apr-18Apr-19Apr-20Apr-21Copyright © 2022 eGuarantee, Inc. All rights reserved.13Action for the fiscal year ending March 31, 2023Ext ernal en viron mentThe Japanese economy in the fiscal year under review has shown signs of recovery amidst the gradualeasing of the tough situation due to the COVID-19 infection. The recovery trend is expected to continue,supported by the effects of various policies and improvement in overseas economies while all possiblemeasures are being taken against infectious diseases and economic and social activities move towardnormalization. However, the future remains uncertain due mainly to the situation in Ukraine, rising prices ofraw materials, and supply side constraints.B a s i c P o l i c y• Continue to make prudent risk judgments on certain industries based on the assumption that the number of bankruptcies will increase in the future . In addition, we will strengthen its sales system, including increasing the number of sales staff, in order to respond to the growing need for credit protection against the background of the uncertain outlook due to the situation in Ukraine and the increase in the amount of receivables due to the rise in raw material prices.• Strengthen data collection on intercompany trading, improve the accuracy of risk judgment, and promote faster screening decisions.• Strengthen the sales system to increase the number of customers and promote the penetration of services related to credit risk in corporate activities.Copyright © 2022 eGuarantee, Inc. All rights reserved.14FY 3/23 Priority Measures 1－①１．Strengthening sales system ①Increase in sales staffThe invasion of Ukraine has caused energy, raw material, and logistics prices to rise, and an increasing number of companies arepassing these costs onto their sales prices. Against this background, inquiries about guarantee services for the purpose of risk hedging are increasing from companies concerned about the increase in the amount of receivables. In addition, there is uncertainty about how long the unstable economic situation will continue, and inquiries for the purpose of credit protection to reduce uncertainty are on the rise. We will strengthen our sales system to respond to these needs.We expect the demand for guarantee services to increase due to the current economic changes and theexpected increase in the number of bankruptcies in the current and next fiscal years. In order to respond tothese changes, we will increase the number of sales staff by more than 30% compared to the end of theprevious fiscal year. In addition, we will promote the introduction of a uniform sales method and focus on theearly development of human resources.Increase the number of sales staff by more than 30%Early development of human resourcesIntensive trainingIntroduction of a uniform sales method⇒ Aiming to bring human resources into the workforce inabout half the time previously requiredCopyright © 2022 eGuarantee, Inc. All rights reserved.15FY 3/23 Priority Measures 1－②１. Strengthening sales system ② Enhance each branchSince changes in economic conditions are affecting the entire country, rising risk hedging needs and conservation needs are seenregardless of region. In regions other than the Tokyo metropolitan area, where guarantee needs have been increasing but have not been adequately responded to, we will increase the number of sales staff and strengthen the allocation of staff to offices.• Newly opened Tohoku branch.• Increase the number of staff assigned toeach regional office.• Strengthening the reach ofregionalcustomers by leveraging our strength inpartnerships with regional banks.Opening of new locationsIncrease in the number of staff assigned to each existing location••Shifted from a regional sales system that mainly involved business trips to a community-based sales system that utilizes regional offices.In the future, we plan to develop regional limited product .Plans to open a new Hokuriku BranchTohoku Branchopened in MayIncrease in the number of staff assigned to each existing location1 head office, 5 branches, 6 officesCopyright © 2022 eGuarantee, Inc. All rights reserved.16FY 3/23 Priority Measures 2－①２．Development in surrounding business line①Development in surrounding business line using dataContinue to strengthen data collection on business-to-business transactions and developsurrounding business line based on fast corporate screening utilizing the collected data.Company InformationData on B-to-B transactionsCollecting data on business-to-business transactions•Information about business-to-businesstransactions• Credit information• Company Presence InformationChange of transaction termsTransaction termsImproving screening performanceFast and accurate corporate screeningutilizing the collected dataDelay situationTransaction amountDevelopment in surrounding business line• Billing and Settlement Services• Receivables Purchase Service• Small Amount Receivables GuaranteeServiceTransaction detailsProductsNumber of information items collectMore than 2.6 million items per dayCopyright © 2022 eGuarantee, Inc. All rights reserved.17FY 3/23 Priority Measures 2－②２．Development in surrounding business line② Introduction Receivables Purchase ServiceIn the development of surrounding business line, we plan to introduce a receivables purchase service in FY3/22.→ To meet growing financing needs against the background of the termination of virtually interest-free and unsecuredloans by government-affiliated financial institutions and rising prices of crude oil and raw materials.SellerBuyerShipping Goods１5Payment of purchase price4Payment of purchase price ＋Consignment of payment collection26Sending billing information（Application for purchase of receivables）Payment of the price collected from the buyer３Invoice in seller’s name sent to buyereG Payment,Inc. （ wholly owned subsidiary of eGuarantee ）Copyright © 2022 eGuarantee, Inc. All rights reserved.18For inquiries about this material, please contact:eGuarantee Co., Ltd. IR Teamirinfo@eguarantee.co.jpCopyright © 2022 eGuarantee, Inc. All rights reserved.19