On August 26, Hibiki Path Advisors (hereinafter referred to as “Hibiki”) made a presentation to the management of Zenkoku Hosho Co., Ltd. (Code 7164) (hereinafter referred to as “Zenkoku” and “the Company”) and delivered the attached letter to the Board of Directors of the Company. Zenkoku is the largest housing loan guarantor in Japan.

Zenkoku has dramatically increased its shareholders’ equity from 36.6 billion yen at the time of IPO in 2012, to 184.8 billion yen in 3/2022 solely with organic growth. During that time, Zenkoku also returned more than 50 billion yen to its shareholders, a combined total value of more than 235 billion yen created for shareholders. In 2020, the Company also obtained an A-range credit rating, which provides evidence that the Company’s financial base is solid. The current loan guarantee balance reached 15.4 trillion yen as of 3/2022, the top market share of 8.2% (estimated) of domestic private housing loan market.

In spite of such continued growth and expansion of its business and its BPS (Book-value per Share), its stock market valuation continues to declined in recent years. As a minority shareholder, we made specific proposals on measures to improve corporate value and Return-on-Equity, including minimum 70% payout ratio.

We will continue to hold constructive discussions with the management of the Zenkoku Hosho in order to maximize its value per share.

This letter does not constitute a solicitation to subscribe for, or a recommendation to buy or sell, any specific securities, nor does it constitute investment, legal, tax, accounting, or any other advice of any kind.

Letter to ZENKOKU HOSHO Co., Ltd.　　BUSINESS WIRE press release