Japan Warranty Support <7386> is developing total after-support for residences starting from extended warranties for home appliances.

The main service, "Anshin Repair Support," is a service that takes care of repair operations on behalf of business operators when failures or malfunctions occur in home appliances, providing this service for up to 10 years, including the manufacturer warranty period. Contacts for failures and malfunctions are accepted 24 hours a day, 365 days a year. The service fee for the extended warranty service is received in bulk, and accounted for as monthly revenue proportionate to the warranty months; early cancellations hardly occur, ensuring stock revenue for up to 10 years (120 months). The stock sales ratio is 72%. In addition to "Anshin Repair Support," various service lineups such as "Anshin Housing Support 24h," "Reuse Repair Support," and "Sumai no Mirai" are also being expanded.

Moreover, utilizing the unique know-how accumulated from the fully self-operated extended warranty business, a BPO business is also being developed to meet the needs of partner companies. In the extended warranty services provided by partner companies, the company acts as an intermediary between the partner companies and end-users, handling all operations from defect acceptance to repair arrangements and insurance claims. There are also cases where the company’s call center is used as a contact for defects concerning other aspects of the residence (such as structural issues or leaks), and this is classified separately as call center BPO. Additionally, it is horizontally expanding to renewable energy-related products, and from May 2024, it plans to launch the "Photovoltaic System Anshin Long-term Warranty."

For the fiscal year ending September 2024, revenue is projected to be 1,984 million yen, an increase of 19.3% compared to the previous year, and operating profit is expected to rise by 31.9% to 815 million yen. Although both revenue and operating profit did not meet planned figures, all reached record highs, achieving increased revenue and profit for eight consecutive periods. The main reasons for the shortfall in revenue were the reduction in new member registrations from major partner Yamada Denki and stagnation in the growth of residential photovoltaic technology; however, efforts began at the end of the previous period to expand the number of partner companies through cross-selling within the group and switching to industrial photovoltaic technology. The number of valid memberships has steadily increased, surpassing 1.78 million, and the strong partnership network has also exceeded 2,473 companies (an increase of 75), contributing to sustainable member acquisition. The number of BPO clients has increased to 80 companies.

For the fiscal year ending September 2025, revenue is anticipated to be 2,051 million yen, a 3.3% increase compared to the previous year, while operating profit is expected to decrease by 10.5% to 730 million yen. Focus on sales to home appliance manufacturers and housing manufacturers is expected to yield around 2 million valid memberships, but the reduction in new member registrations from Yamada Denki is likely to affect administrative fee revenue until this period. However, in the extended warranty business, continued revenue and profit growth is expected through the development of new partnerships outside of Yamada Denki, and the BPO business is also planning to expand by focusing on industrial photovoltaic technology. Additionally, a mid-term performance plan has been disclosed, projecting a revenue growth of 11.4% CAGR over three years. Profits are expected to temporarily decline only for the fiscal year ending September 2025 due to slowing sales growth, but stock revenue is anticipated to steadily increase, expecting a V-shaped recovery.

The domestic extended warranty market is expected to continue expanding due to rising consumer protection awareness and the growth of SDGs, with the market for home appliances estimated at approximately 166.7 billion yen, indicating significant room for revenue expansion. Although the number of new housing starts is on the decline, the overall housing market remains stable, and the home appliance market is robust, while renewable energy-related products (notably photovoltaic technology) are also expected to grow in the future. While aiming to achieve an overwhelming number one share of valid memberships in the extended warranty business, the objective is also to accumulate flow revenue through the expansion of value-added services that synergize with extended warranty services. Furthermore, partnerships with companies that have already expanded overseas (home appliance manufacturers) are expected to leverage the overseas market for extended warranty business. Strong and stable growth in performance is likely, and shareholder returns are also being executed, with a projected dividend payout ratio of 18.9% for the fiscal year ending September 2025. Attention should be paid to the company as it transitions from the startup phase into a growth phase.