e Guarantee

Basic Information

Stock Code
8771
Industry
Other Financial Services
Category Detail
Consumer & Business Finance
Prefecture
Tokyo
Establishment Year
September 2000
Listing Year
March 2007
Official Website
https://www.eguarantee.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Ship HD, Synchro, Nippon Insure, Zenko-ren, Zenkoku Hosho, Anshin Hosho, J-Lease, Intrust, Casa, GENOVA

Overview

e Guarantee is a credit risk guarantee specialist company in the Itochu Corporation Group, established in 2000, providing a variety of guarantee services to financial institutions nationwide.

Current Situation

e Guarantee recorded consolidated sales of approximately ¥5.5 billion, operating profit of approximately ¥2.5 billion, and net profit of approximately ¥1.8 billion in 2019, maintaining a solid financial base. Centering on credit risk underwriting and securitization business, it offers a wide range of guarantee services to companies and financial institutions, leveraging the know-how of the Itochu Corporation Group. It partners with major banks and securities companies nationwide, guaranteeing diverse accounts receivable to expand market share and differentiate from competitors. With high creditworthiness and risk diversification mechanisms, it can efficiently underwrite large volumes of credit risk. In recent years, significant increases in operating profit are planned, with a focus on improving operational efficiency and diversifying credit guarantee products. It has established an advanced credit risk management system and is working to strengthen risk hedging. Going forward, it aims to expand the market through service enhancements using digital technology and strengthened support for small and medium-sized enterprises.

Trivia

Interesting Facts

  • The only credit risk guarantee specialist company in the Itochu Corporation Group
  • Realizes large-scale credit risk diversification in cooperation with multiple financial institutions
  • Built a strong partnership network with regional banks nationwide in the guarantee field
  • Achieved relisting on TSE Second Section and First Section after delisting
  • Holds stable share in the accounts receivable guarantee service market
  • High recognition as a financial company headquartered in Akasaka Biz Tower
  • Pioneer in early introduction of credit risk securitization products
  • Advancing online transformation of guarantee operations through technology investments
  • Contributed to SME funding environment with diverse guarantee product rollout
  • Strengthening financial service collaboration within the Itochu Corporation Group
  • Developed schemes enabling efficient transfer of financial institutions' credit risk
  • Approximately 174 employees engaged in service provision as of 2019
  • Itochu Corporation holds approximately 24% of shares as major shareholder
  • Mid-sized player in the credit guarantee industry marking 20 years since establishment
  • Conducts guarantee operations based on multifaceted risk assessments

Hidden Connections

  • Collaborates with Itochu Corporation Group companies to provide risk guarantees across diverse industries
  • Deploys guarantee services nationwide via partner financial institutions' regional bank networks
  • Positioned as a specialist group focused on debt risk management for financial institutions
  • Moved listing from Jasdaq to TSE 1st Section to strengthen creditworthiness
  • Contributes to fund circulation in financial markets through credit risk securitization business
  • Shares advanced credit risk management know-how across the entire Itochu Group
  • Promotes exchanges and synergies with other financial-related companies in Akasaka Biz Tower
  • Implemented collaborative initiatives with local governments in SME credit guarantee field

Future Outlook

Growth Drivers

  • Operational efficiency and customer convenience improvements through digitalization
  • Increasing funding needs for SMEs
  • Expansion of guarantee products corresponding to diversifying credit risks
  • Expected growth in credit guarantee market due to policy support
  • Market expansion through strengthened collaboration with financial institutions
  • Expanding demand for risk securitization products
  • Flexible risk management adapting to domestic and international environmental changes
  • Sophistication of credit evaluation through introduction of advanced AI analysis
  • Strengthening regulatory compliance in guarantee operations
  • Customized guarantee services tailored to customer needs

Strategic Goals

  • Achieve operating profit doubling through expansion of guarantee balance
  • Operational efficiency through completion of digital platform
  • Market share expansion in domestic market and strengthened regional bank collaboration
  • Development of comprehensive guarantee products for diversifying credit risks
  • Strengthening SME support business and regional economic contributions
  • Establishment of risk management system compliant with international standards
  • Ongoing operations aligned with sustainability indicators
  • Service innovation for improved customer satisfaction
  • Entry into new financial service areas and diversification
  • Enhancement of employee expertise and creation of better workplace environment

Business Segments

Corporate Credit Guarantee

Overview
Corporate financial services that guarantee credit risk and facilitate funding.
Competitiveness
Credit strength and extensive financial network of the Itochu Corporation Group
Customers
  • SMEs
  • Large corporations
  • Venture companies
  • Financial institutions
  • Leasing companies
  • Securities companies
Products
  • Accounts Receivable Guarantee
  • Credit Risk Securitization Products
  • Risk Diversification Guarantee
  • Guarantee Contract Management Services
  • Credit Management Support
  • Credit Analysis Tools

Credit Guarantee for Financial Institutions

Overview
Guarantees credit risks of debts held by financial institutions and supports new revenue opportunities.
Competitiveness
Efficient risk diversification system through multi-institution collaboration
Customers
  • Regional banks
  • Megabanks
  • Credit unions
  • Credit cooperatives
  • Leasing companies
  • Securities companies
Products
  • Debt Credit Risk Guarantee
  • Credit Risk Securitization Schemes
  • Debt Collection Support Services
  • Risk Consulting
  • Credit Information Analysis

SME Support Services

Overview
Supports funding and financial health improvement for SMEs through credit risk guarantees.
Competitiveness
Diverse guarantee options and flexible responsiveness
Customers
  • Local SMEs
  • Startups
  • Venture companies
  • Manufacturing
  • Services
Products
  • Business Funding Guarantee
  • Accounts Receivable Guarantee
  • Credit Risk Diagnosis
  • Management Consulting

Risk Securitization Support

Overview
Improves market transparency and liquidity through credit risk securitization.
Competitiveness
Advanced financial technology and risk assessment capabilities
Customers
  • Securities companies
  • Insurance companies
  • Investment funds
  • Financial infrastructure operators
Products
  • Credit Risk Securitization Products
  • Guaranteed Bonds
  • Tranche Setup
  • Credit Derivatives

Credit Risk Analysis and Consulting

Overview
Provides advanced analysis and advice on risk management.
Competitiveness
Team of specialized consultants with extensive experience
Customers
  • Corporate finance departments
  • Financial institution risk management departments
  • Investors
Products
  • Credit Risk Assessment Reports
  • Credit Management Tools
  • Debt Collection Strategy Development

Competitive Advantage

Strengths

  • Reliability backed by the credit strength of the Itochu Corporation Group
  • Extensive partnership network with numerous financial institutions
  • Diverse lineup of accounts receivable guarantee products
  • Efficient credit risk diversification and securitization technology
  • Excellent credit risk assessment and management capabilities
  • Flexible customer response and SME support system
  • Advanced financial product development capabilities
  • Comprehensive credit management and analysis tools
  • Customer closeness through abundant sales and service teams
  • Solid market share in the domestic market
  • Stable financial base
  • Continuous operating profit growth
  • Strong legal compliance system
  • Advanced risk hedging strategies
  • Nationwide sales channel deployment

Competitive Advantages

  • High credit guarantee capability leveraging Itochu Corporation Group's know-how and capital base
  • Unique risk assessment know-how for guaranteeing diverse and special accounts receivable
  • Enables large-scale guarantee underwriting through risk diversification guarantee system in collaboration with multiple financial institutions
  • Contributes to new revenue for financial institutions with specialized and advanced credit risk securitization services
  • High-convenience channel deployment through partnerships with a wide range of regional banks and securities companies
  • Improved customer satisfaction through flexible and rapid guarantee review system
  • Promotes comprehensive risk management by providing various credit risk-related consulting services
  • Product lineup capable of meeting diverse needs of SMEs
  • One-stop service integrating credit guarantees and securitization
  • Ensures trust through strict regulatory compliance and compliance system
  • Ongoing operating profit doubling plan and revenue growth strategy
  • Development capabilities for high-precision credit risk assessment tools
  • Product improvement and new product development adapting to market needs
  • Strengthening customer base through region-focused service deployment
  • Business efficiency improvements using IT and analysis technology

Threats

  • Risk of decreased guarantee demand due to domestic economic stagnation
  • Possibility of loss expansion due to sudden deterioration of credit risk
  • Business constraints due to stricter financial regulations
  • Intensified competition from new entrants or price competition by competitors
  • Impact of economic deterioration from natural disasters or pandemics
  • Decline in competitiveness due to delays in digitalization of credit guarantee market
  • Risk of inability to respond to rapid financial technology changes
  • Risk of partnership dissolution with financial institutions
  • Loss of social trust due to legal compliance violations
  • Intensified overseas market competition and policy uncertainty
  • Increased guarantee losses due to rising SME bankruptcies
  • Risk of fluctuations in financial product prices

Innovations

2023: Promotion of Digitalization in Guarantee Operations

Overview
Introduced an online guarantee application and review system to improve operational efficiency.
Impact
Reduced review period by 30% and improved customer satisfaction

2022: Development of AI-Powered Credit Risk Analysis Tool

Overview
Achieved improved accuracy in debtor credit risk evaluation using AI.
Impact
Improved risk management accuracy by 20%

2024: Enhancement of Multi-Institution Collaborative Risk Diversification Scheme

Overview
Expanded mechanisms for efficiently diversifying guarantee risk among financial institutions.
Impact
Prevents concentration of guarantee risk and contributes to stable performance

2021: Diversification of Guarantee Products for SMEs

Overview
Provided customizable guarantee products tailored to various industries and sizes.
Impact
Increased number of SME customers by 15%

2025: Development of Online Guarantee Contract Management System

Overview
New system providing automation of contract management and online access.
Impact
Improved operational efficiency by 25%

2023: Entry into Credit Risk Securitization Market

Overview
Began handling large securitization deals and related products to expand market presence.
Impact
Established new sources of operating revenue growth

2022: Launch of Online Credit Management Tool

Overview
Released real-time credit information management tool for customers.
Impact
Improved customer satisfaction and usage rate

2024: Development of Guarantee History Database

Overview
Centralized management of guarantee records and history to improve credit evaluation accuracy.
Impact
Contributes to improved guarantee accuracy and reduced loss ratio

2023: Legal Compliance and Compliance Enhancement Program

Overview
Implemented measures to strengthen compliance systems related to guarantee operations.
Impact
Reduces corporate risk and improves social trust

2025: Expansion of Online Channels and Improved Customer Convenience

Overview
Strengthened web and smartphone-compatible contract and consultation channels.
Impact
Increased new customer acquisition by 20%

Sustainability

  • Enhancing transparency in guarantee business and thorough information disclosure
  • Strengthening consideration of environmental and social factors in risk management
  • Contributing to regional economic revitalization through SME support
  • Strengthening compliance systems
  • Reducing resource consumption through utilization of digital technology