Annual Report 2015 - 東京信用保証協会 · Annual Report 2015 Credit Guarantee Corporation of Tokyo 英-AnnualReport2015表紙.indd 1-3 15/06/19 16:19. Credit Guarantee Corporation

Utilizing 50％ post-consumerrecycled paper pulp

We are “Marugamo Oentai,” CGCT’s mascot.

Go,Go, SMEs!

Annual Report 2015Credit Guarantee Corporation of Tokyo

英-AnnualReport2015表紙.indd 1-3 15/06/19 16:19

Credit Guarantee Corporation of Tokyo Annual Report 2015 16

Our Fundamental Philosophy

Our Action Principles

We at CGCT,

by offering credit guarantees,

connect the energy and credit standing

of small and medium enterprises to new possibilities,

and provide strong support

for the advancement of management.

External service, Customer orientation

We attend to customers with attitudes of kindness,

fairness and gratitude.

Internal environment, Ways of working

With new ideas and free discussion,

we aim to make our office

a cheerful and challenging workplace.

Fruitful working lives

We strive for personal development,

with sound bodies and minds.

Japan

Tachikawa

Ikebukuro

Shinjuku

Shibuya

Gotanda

Ota

Kinshicho

Ueno

Katsushika

Senju

Hachioji Head Office

Tokyo

This annual report is available on the Internet,as are the reports for 2013 and 2014. Please go to http://www.cgc-tokyo.or.jp

Internal Auditor

Planning Sect.

Public Relations Sect.

General Affairs Sect.

Accounting Sect.

Yoga Center Management Office

Guarantee Organizational Sect.

Systems Information Sect.

Human Resources Sect.

Management Support Organizational Sect.

Management Support Sect.

Guarantee Administration Organizational Sect.

Legal Procedures Sect.

Collection Affairs Sect.

Collection Sect.

Subrogation Sect.

Credit Insurance Sect.

Loan Restructuring Sect.

Collection Organizational Sect.

Guarantee Sect.　

Start-up Business Sect.


Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

(As of April 2015)

Executive Officers 16 directors 3 auditorsEmployees 680

SeniorExecutiveDirector

Ikebukuro BranchNissay Ikebukuro Bldg., 1-24-1 Higashiikebukuro,

Toshima-ku, Tokyo 170-0013Phone: 81-3-3987-5445 Fax: 81-3-3987-7523

Gotanda BranchHigashi Gotanda Square Bldg., 2-10-2 Higashigotanda,

Shinagawa-ku, Tokyo 141-0022Phone: 81-3-5447-8250 Fax: 81-3-3443-1130

Kinshicho BranchArca Central Bldg., 1-2-1 Kinshi,

Sumida-ku, Tokyo 130-0013Phone: 81-3-5608-2011 Fax: 81-3-5608-2320

Shinjuku BranchShinjuku Island Wing Bldg., 6-3-1 Nishishinjuku,

Shinjuku-ku, Tokyo 160-0023Phone: 81-3-3344-2251 Fax: 81-3-3344-2390

Senju BranchSumitomo Seimei Kitasenju Bldg., 40-10 Senjunakacho,

Adachi-ku, Tokyo 120-0036Phone: 81-3-3888-7231 Fax: 81-3-3888-7293

Ueno BranchMatai Bldg., 2-6-7 Motoasakusa,

Taito-ku, Tokyo 111-0041Phone: 81-3-3847-3171 Fax: 81-3-3847-3191

Shibuya BranchShibuya Shinminamiguchi Bldg., 3-28-13 Shibuya,

Shibuya-ku, Tokyo 150-0002Phone: 81-3-5468-0135 Fax: 81-3-5468-1037

Katsushika BranchJoto Small Business Promotion Center, 7-2-5 Aoto,

　Katsushika-ku, Tokyo 125-0062Phone: 81-3-5680-0801 Fax: 81-3-5680-0807

Ota BranchJonan Small Business Promotion Center, 1-20-20 Minamikamata,

Ota-ku, Tokyo 144-0035Phone: 81-3-5710-3610 Fax: 81-3-5710-3091

Tachikawa BranchCore City Tachikawa Bldg., 2-37-7 Akebonocho,

Tachikawa-shi, Tokyo 190-0012Phone: 81-42-525-6621 Fax: 81-42-525-8712

Hachioji BranchHachioji First Square Bldg., 3-20-6 Myojincho,

Hachioji-shi, Tokyo 192-0046Phone: 81-42-646-2511 Fax: 81-42-646-1970

Directors

Auditors

ManagingDirectors

GeneralAffairs

Division

BusinessOperationDivision

Internal Auditing Office

Secretarial Office

General Affairs Dept.

Planning Dept.

Human Resources Dept.

GuaranteeOrganizational Dept.

Management Support Dept.

GuaranteeAdministration Dept.

Loan RestructuringDept.

Start-up BusinessAssistance Plaza

Collection Dept.

Guarantee Dept.

Ikebukuro Branch

Gotanda Branch

Kinshicho Branch

Shinjuku Branch

Senju Branch

Ueno Branch

Shibuya Branch

Katsushika Branch

Ota Branch

Tachikawa Branch

Hachioji Branch

Tama Office

Chairman&

President

For additional information and/or inquiries concerning the contents of this brochure, please contact:

Public Relations Section Planning DepartmentJOTO Bldg., 2-6-15 Yaesu, Chuo-ku, Tokyo 104-0028, Japan Phone: 81-3-3272-3089 Fax: 81-3-3272-3095

Head Office2-6-17 Yaesu, Chuo-ku Tokyo 104-8470, Japan


Message from the Chairman & President

Business Objectives / History

Recent Topics

Mechanism of the Credit Supplementation System

Eligibility for the Credit Guarantee System

Maximum Term and Amount of Guarantees

Responsibility-Sharing System

Credit Guarantee Fee

Use of Credit Guarantee Services

Business Performance

Statistics

Organization Chart

3

4

5

7

9

10

10

10

11

13

14

15

Contents


英.indd 2 15/06/19 16:2

As always, we are sincerely grateful for the cooperation and support that is extended to Credit Guarantee Corporation of Tokyo (CGCT).

Looking back over the Japanese economy in fiscal 2014, although the early part of the year saw weak consumer spending, partly due to a slow rebound in demand following the consumption tax increase, the overall trend was one of gradual recovery powered by strong corporate results, especially for large companies and export industries. However, this virtuous cycle had limited effects on small- and medium-sized enterprises (SMEs) and small business operators, and their operating environment remained unpredictable as the economy was buffeted by sharp fluctuations in exchange rates and oil prices.

Recognizing these circumstances, the government continued financing support including refinancing guarantees and business start-up support schemes,and boosted efforts to provide unified financial and business assistance such as business enhancement support initiatives utilizing the SME Support Network scheme. The government also implemented policies focusing on small enterprises and backed continual business development through enforcement of the Basic Act for the Promotion of Small Enterprises.

Tokyo Metropolitan Government (TMG) supported financing for SMEs and small business operators and helped to energize local industries by broadening the reorganization of its menu of financing options and implementing other measures such as subsidies for credit guarantee fees. It also continued to offer aid including disaster recovery assistance finance to business operators whose businesses suffered damage in natural disasters such as the Great East Japan Earthquake and Typhoon Wipha, which struck Tokyo in 2013.

In light of such circumstances and measures, as well as actively supporting the business financing policies of the national government, TMG, and municipal governments, CGCT has offered a diverse range of financing support tailored to the individual situations of SMEs and small business operators, including proactive and flexible options for easing repayments and altering other guarantee conditions.

In particular, we have facilitated start-up financing through measures including discounted credit guarantee fees for users of TMG’s start-up finance scheme who fulfill certain conditions, and offered comprehensive and continuing support for entrepreneurs by conducting start-up schools and public courses, and providing post-launch follow-up, etc.

Management support continues to be a priority issue for CGCT, and we have actively utilized Management Support Meetings to assist with rapid operational improvements and business reconstruction by individual enterprises. Success stories are shared via our Genki Tokyo Network , which aims to build stronger enterprises in the capital. As well as efforts to build stronger ties with financial institutions and other relevant organizations, our multi-faceted initiatives include business matching during our business fair held at Tokyo International Forum and seminars held in collaboration with universities.

Driven by renewed commitment to our mission and the firm belief that SMEs energize Tokyo, in fiscal 2015 CGCT officers and employees will do their utmost to fulfill the role of CGCT as a close, dependable partner for the city’s SMEs and small business operators. We look forward to your ongoing support.

Message from the Chairman& President

Kanji MurayamaChairman & President Credit Guarantee Corporation of Tokyo

▶Message from

the Chairm

an& President

Credit Guarantee Corporation of Tokyo Annual Report 20153

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FoundationIn 1937, when the Japanese economy was in a serious recession, to help resolve the fund-raising

difficulties of SMEs, the Tokyo Prefectural Government and the Tokyo City Government (together, now the

Tokyo Metropolitan Government) established an incorporated association, the Credit Guarantee Corporation

of Tokyo, as the first institution in Japan to enter the credit guarantee business.

Enactment of The Credit Guarantee Corporation LawIn 1954, CGCT was transformed into an approved corporation pursuant to the Credit Guarantee

Corporation Law, which was enacted to facilitate our services and strengthen our organizational base.

Fifty-One Credit Guarantee Corporations NationwideFrom 1937, when CGCT was established as a pioneer in providing credit guarantee services, to 1961,

credit guarantee corporations were founded in each prefecture across the country. At present, there are 51

credit guarantee corporations in Japan.

Establishment of the Credit Supplementation SystemIn 1958, the Small Business Credit Insurance Corporation (now the Japan Finance Corporation)

was established as a government agency to provide insurance for the guarantees offered by credit

guarantee corporations across the country. It was at this point that the current framework of Japan’s

credit supplementation system was completed. (See page 7, “Mechanism of the Credit Supplementation

System”.)

Development of the SystemThe credit supplementation system has been greatly enhanced since its establishment. For example,

the definition of SMEs has been expanded to include larger firms, the range of business categories eligible

for guarantees has been broadened and the value limit for unsecured guarantees has been increased

several times.

Moreover, in response to the diverse needs of SMEs, various new types of credit guarantee programs

continue to be developed, such as the Safety-Net Guarantee Program, CLO (collateralized loan obligation)

guarantees, corporate bond guarantees and ABL (asset-based lending) guarantees.

Based on the report by the Council on Government Policy for SMEs, various efforts are being made

to better respond to the needs of the times, such as the implementation of a responsibility-sharing system

with financial institutions and a guarantee rate system based on the client’s degree of credit risk.

Advancing with Small and Medium EnterprisesAt present, various governmental measures for small and medium enterprises are being taken in

Japan. As an institution that plays a significant part in this mission, CGCT continues to advance in line with

the development of small and medium enterprises.

History

The central object ive of the Credit Guarantee Corporation of Tokyo (CGCT) is to support the many small and medium enterprises (SMEs) that are managing their businesses in a reliable manner and striving to grow. Our chief tool is to offer credit guarantees to SMEs so that they can raise necessary funds from financial institutions or the capital market.

Message from the Chairman& President

Business Objectives ▶

Business Objectives　

　

▶

History


英.indd 4 15/06/19 16:2

Establishment of New Guarantee Schemes

Management Support Initiatives

1

2

Recent TopicsCGCT is engaged in many new operations to promote the success of both SMEs and

the regional economy. The following are some of our events, services and special credit guarantee programs.

Considering the economic environment and SME operators’ needs, the following new guarantee schemes were established in fiscal 2014 to enhance financial support through guarantees.

(1) Thanks 10 Special Guarantee Scheme (“Thanks 10”)Period available: April 2014 - September 2014 To convey CGCT’s appreciation to SME operators who have used our services several times, this scheme offered such users major reductions in guarantee fees.

(2) Short-Term Finance Guarantee Scheme (“Step”)Period available: October 2014 - March 2015By quickly and flexibly providing short-term finance to meet forward demand,this scheme supported further business development as the economy regained buoyancy.

(3) Special Scheme for Guarantees Teamed With Unguaranteed Loans (“Tie-up”)Period available: October 2014 onwardThis scheme meets the total financing needs of SME operators fulfilling certain conditions, including business history and financial position, by offering unguaranteed loans from a financial institution in tandem with finance guaranteed by CGCT.

CGCT has actively offered management support, as well as financial backing through credit guarantees. The Tokyo Council for SME Vitality* comprising financial institutions, management support agencies, and specialist groups, was established in September 2012 with our Management Support Department acting as secretariat. Members of this council have helped to revitalize the Tokyo economy by exchanging information on operational improvement and business reconstruction initiatives, conducting General Meetings aimed at enhancing cooperation and Management Support Meetings aimed at assisting individual enterprises, and supporting operational improvements and swift business reconstruction at Tokyo SMEs.

CGCT also proactively organizes events including joint seminars with universities and a business fair aimed at helping SMEs to expand their businesses by providing them with a forum for exploring business opportunities and business matching options.

* As of March 2015, the network consisted of 84 organizations: 61 financial institutions, 3 financial associations, 6 specialist groups, 10 management support agencies, and 4 advisory agencies.

▶Recent Topics


英.indd 5 15/06/19 16:2

Support for Entrepreneurs

International Cooperation

3

4

CGCT was the first of Japan’s 51 credit guarantee corporations to establish a department specializing in providing support for start-up SMEs. With the slogan “From Sowing to Sprouting,” our Start-Up Business Assistance Plaza provides continuous support to pre- and post-start-up entrepreneurs from both management and financial perspectives.

To support the smooth supply of finance to entrepreneurs and the growth of new business, in the second half of fiscal 2014 discounted credit guarantee fees were offered to users of TMG’s start-up finance scheme who fulfilled certain conditions.

The Plaza provides comprehensive management support services for SMEs, from pre-establishment financial advice and business planning to post-establishment management advice. CGCT also holds seminars and entrepreneurial training courses designed to equip people with the know-how for launching and running a business.

CGCT is working to enhance international exchange pertaining to credit supplementation systems by exchanging information at conferences and councils with foreign institutions and welcoming visitors to Japan for research and study.

CGCT attends the annual Asian Credit Supplementation Institution Confederation (ACSIC) conference, and regularly exchanges English-language annual reports with ACSIC member institutions. In addition, every year CGCT and the Korea Credit Guarantee Fund host a Working Level Council, which provides an opportunity for staff involved in business operations to actively exchange information and views through discussion of practical topics such as “business performance and business plans” and “business challenges facing various departments and planned countermeasures.”

June 2014 Seminar for Thai Credit Guarantee Corporation and Ministry of Finance in Thailand

August 2014 Attendance at the 25th Working Level Council with Korea Credit Guarantee Fund (Korea)

November 2014 Attendance at the 27th ACSIC Conference (Kuala Lumpur Malaysia)

February 2015 Seminar on Financial and Technological Support for SMEs Promotion

March 2015 Seminar on financial system stabilization policies and strategies of financial system innovation (for officers in the government and national banks of several Newly Independent States)

▶

Recent Topics

Main international activities in fiscal 2014


英.indd 6 15/06/19 16:2

1) Loan application

5) Loan repayment

4) Loan

2) Application for credit guarantee

2) Application for credit guarantee

6) Request for payment in subrogation

Deposit

7) Payment in subrogation

Recovery of subsidies

Contract of subsidies for possible losses

Payment ofrecovered money

Payment of insurancepremium

8) Loan repayment (Recovery of funds)

4) Guarantee fee

Payment ofsubsidies

Su

per

visi

on

/Fu

nd

ing

Fund loan/Contributions

Credit insurance contract

Payment ofinsurance money

3) Issuance of guarantee

Fund forCredit Insuarance

National GovernmentMinistry of Finance

Ministry of Economy,Trade and Industry

(Small and Medium Enterprise Agency)

National GovernmentMinistry of Finance

Ministry of Economy,Trade and Industry

(Small and Medium Enterprise Agency)

Smalland

MediumEnterprises

FinancialInstitutions

FinancialInstitutions

TokyoMetropolitanGovernment

Japan FinanceCorporation

Small and MediumEnterprise (SME) Unit

GUARANTEEGUARANTEEGUARANTEEGUARANTEE

In order to strengthen the credit guarantee system, which supports the financing and growth of small and medium enterprises, a credit insurance system has been established.

The credit insurance system is a mechanism to cover the risk that a credit guarantee corporation may have to make payment pursuant to a guarantee, using insurance offered by the Japan Finance Corporation, an organization fully funded by the government.

The credit guarantee system and credit insurance system are collectively termed the “credit supplementation system.”

▶Mechanism

of the Credit Supplem

entation System

Mechanism of the credit Supplementation System


英.indd 15/06/19 16:2

Bank Deposits

Cooperation between Tokyo Metropolitan Government and CGCT

The Credit Insurance System (Cooperation between Japan Finance Corporation and CGCT)

Pursuant to a credit insurance contract between the Japan Finance Corporation (hereinafter referred to as “JFC”) and CGCT, JFC undertakes to insure the credit guarantees issued by CGCT. CGCT pays credit insurance fees to JFC, from the credit guarantee fees received by CGCT. In the event that CGCT must make a payment in subrogation to a financial institution, JFC will pay to CGCT as insurance proceeds 70% or 80% of the principal amount which CGCT pays in subrogation. In the event CGCT recovers money from a defaulting SME, CGCT will pay to JFC a portion, in the same ratio as the amount received from JFC bears to the principal amount.

In order to facilitate the financing of SMEs in Tokyo, the Tokyo Metropolitan Government (“TMG”) implements various loan programs in cooperation with CGCT and financial institutions in Tokyo. TMG lends funds to CGCT for the purpose of smooth implementation of such loan programs, and CGCT deposits all of such funds in banks.

In addition, pursuant to a contract of assistance for losses, TMG will, in the event CGCT makes guarantee payments under TMG’s loan programs, provide to CGCT assistance money covering all or part of such guarantee payments which is not covered by JFC’s insurance. CGCT will pay to TMG a portion of any money that CGCT recovers from a defaulting SME, in proportion to the TMG assistance money.

The deposits which CGCT makes in financial institutions influence financial institutions to lend positively to SMEs, and at lower interest rates.

Such deposits are derived both from loans from TMG and from funds provided by TMG to CGCT to promote the various TMG loan programs.

CGCT makes such deposits in banks whose loans are guaranteed by CGCT, and distributes the deposits so as to promote proper guarantees, taking into consideration both the quantity of guarantees (outstanding guaranteed liabilities, average of outstanding guaranteed liabilities, and amount of guarantee acceptance or number) and the quality of guarantees (subrogation rate or amount of subrogation).

▶

Mechanism

of the Credit Supplem

entation System


英.indd 15/06/19 16:2

▶Eligibility for the Credit G

uarantee System

Business Type Maximum Amountof Capital

Maximum Numberof Employees

Manufacturing, etc. ¥300 million 300

Wholesale trade ¥100 million 100

Retail trade ¥50 million 50

Services ¥50 million 100

Health care, etc. - 300

Company Scale

Business Type

Company Location

1

2

3

In principle, CGCT can offer credit guarantee services to small and medium enterprises as specified in the Small and Medium Enterprise Credit Insurance Law. SMEs that satisfy either of the limits on the maximum number of full-time employees or the maximum capital listed in the following table qualify for application.

The credit guarantee service is available to most types of businesses. Categories that are not eligible for the service include agriculture, forestry, fishery and finance.

When SMEs are engaged in businesses which require a license or registration, they must obtain the relevant license or registration.

A company seeking credit guarantees must operate business facilities in Tokyo, either from a Tokyo head office or from another business facility. In case of individually owned and operated businesses, the owner must live in Tokyo or operate the business in Tokyo.

In the case of special financial programs offered by the government, companies must also meet any conditions established by the government.

CGCT provides credit guarantees to companies that satisfy certain conditions regarding company scale, business type and company location, as described below.

Eligibility for the Credit Guarantee System


英.indd 9 15/06/19 16:2

▶

Maxim

um Term

and Am

ount of Guarantees　

▶


　

▶

Credit G

uarantee Fee

*1. CGCT has some guarantee programs that apply a single fixed credit guarantee fee rate.

*2. CRD, which was established to facilitate the financing of SMEs, is the largest database regarding SMEs in Japan.

Type of Guarantee Use of Funds

Maximum Term

MaximumAmount

Individual guaranteeOperations,Equipment

10 years

¥280 million

Revolving guarantee Operations 2 years

Revolving guarantee for overdrafts

Operations,Equipment

2 years

Main credit guarantee fee rate (%)

Classification Ⅰ Ⅱ Ⅲ Ⅳ Ⅴ Ⅵ Ⅶ Ⅷ Ⅸ

Credit guarantee fee rate 2.20 2.00 1.80 1.60 1.35 1.10 0.90 0.70 0.50

Credit guarantee fee rateunder Responsibility-Sharing System

1.90 1.75 1.55 1.35 1.15 1.00 0.80 0.60 0.45

In principle, the guarantee ceiling for a company is 200 million yen for a general guarantee and 80 million yen for an unsecured guarantee, bringing the total to 280 million yen. As noted in the table, the maximum term and amount of guarantee are prescribed by the type of guarantee, and the conditions of the guarantee are set within a prescribed range. Special conditions are available for companies that have been approved by the national or local government.

For the purpose of providing more suitable financial and management support for all SMEs, in October 2007 CGCT introduced a Responsibility-Sharing System to more closely coordinate services and responsibilities between CGCT and financial institutions. Whereas in principle CGCT used to guarantee 100% of a loan, after the implementation, financial institutions must bear a fixed portion (about 20%) of the burden (except for some guarantee programs).

Credit guarantee fees are calculated based on the loan amount, the applicable credit guarantee fee rate, the term of the loan and the method of payment. As indicated in the table below, the main credit guarantee fee rate is basically linked to each company’s business situation and is divided into nine levels*1. The applicable rate classification for each borrower is determined utilizing the SME Credit Risk Database (CRD) *2.

Maximum Term and Amount of Guarantees


Credit Guarantee Fee


英.indd 10 15/06/19 16:2

▶Use of C

redit Guarantee Services

Use of credit guarantee service

As of March 31, 2015

202,942 enterprises use credit guarantees

45.8%

¥3 – 10 million

31.7%

¥10 – 30 million

31.4%

Individuals

23.9% Under¥3 million

4.9%

Cooperatives, Other

0.8%

Client breakdown, by type/capital size

Purpose of use ofcredit guarantees

Operations, Equipment

2.0%

Equipment

4.8%

Operation

93.3%

Shinkin banks,Credit cooperatives

42.1%

Government �nancialinstitutions

1.0%

Other

0.1%

Other banks

10.4%

City banks

46.4%

Use of guarantees,by type of financial institution

(Percent of total value)

Manufacturing

16.6%

Wholesale trade

15.4%

Retail trade

18.8%Construction

16.0%

Services

23.6%

Transport, Warehouse

2.3%

Real estate

7.0% Other

0.4%

Use of guarantees,by sector

Under 5

74.5%

6~1010.1%

11~20

7.1%

21~50

5.3%

Over 50

2.8% Cooperatives

0.1%

Use of guarantees,by company size

Over ¥30 million

7.2%

(Due to rounding up, totals may not match the sum of individual items.)

Use of Credit Guarantee Services

CGCT currently serves around 45.8% of the small and medium enterprises operating in the Tokyo Metropolitan area; that is, 202,942 out of 442,952* businesses.

*Figure taken from the “2014 White Paper on Small and Medium Enterprises in Japan,” compiled by the Small and Medium Enterprise Agency. This figure excludes the fields of agriculture, forestry and fishery, which are not eligible for credit guarantee services.

Almost half of Tokyo's small and medium enterprises use the service1


Client category Number of users Percent of all users

Individuals 48,545 23.9

Capital of under ¥3 million 10,045 4.9

Capital of ¥3 – 10 million 64,372 31.7

Capital of ¥10 – 30 million 63,803 31.4

Capital of over ¥30 million 14,629 7.2

Cooperatives, Other 1,548 0.8

Total 202,942 100.0

About 60% of our clients are companies with capital under 10 million yen or individuals2


Number of employees Number of users Percent of all users

Under 5 151,289 74.56~10 20,575 10.111~20 14,376 7.121~50 10,816 5.3Over 50 5,744 2.8Cooperatives 142 0.1Total 202,942 100.0

About 75% of our clients are companies with fewer than five employees3


英.indd 11 15/06/19 16:2

▶

Use of C

redit Guarantee Services

Use of credit guarantee service


202,942 enterprises use credit guarantees

45.8%

¥3 – 10 million

31.7%

¥10 – 30 million

31.4%

Individuals

23.9% Under¥3 million

4.9%

Cooperatives, Other

0.8%

Client breakdown, by type/capital size

Purpose of use ofcredit guarantees

Operations, Equipment

2.0%

Equipment

4.8%

Operation

93.3%

Shinkin banks,Credit cooperatives

42.1%

Government �nancialinstitutions

1.0%

Other

0.1%

Other banks

10.4%

City banks

46.4%

Use of guarantees,by type of financial institution

(Percent of total value)

Manufacturing

16.6%

Wholesale trade

15.4%

Retail trade

18.8%Construction

16.0%

Services

23.6%

Transport, Warehouse

2.3%

Real estate

7.0% Other

0.4%

Use of guarantees,by sector

Under 5

74.5%

6~1010.1%

11~20

7.1%

21~50

5.3%

Over 50

2.8% Cooperatives

0.1%

Use of guarantees,by company size

Over ¥30 million

7.2%

Issued in FY2014

Use of funds Amount of guarantee acceptances(¥million)

Percent of total value

Operations 994,599 93.3

Equipment 50,808 4.8

Operations, Equipment 20,996 2.0

Total 1,066,403 100.0

More than 90% of guarantee acceptances are for operating funds6


Lender type

Balance of outstanding guaranteed

liabilities(¥million)

Percent of total value

City banks* 1,806,456 46.4

Other banks 403,974 10.4

Shinkin banks, Credit cooperatives 1,637,609 42.1

Government financial institutions 40,417 1.0

Other 2,717 0.1

Total 3,891,172 100.0

*Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp., Resona Bank, Mizuho Corporate Bank, Saitama Resona Bank

Use of credit guarantees by different types of financial institutions5


Sector Number of users Percent of all users

Manufacturing 33,704 16.6

Wholesale trade 31,193 15.4

Retail trade 38,054 18.8

Construction 32,537 16.0

Services 47,878 23.6

Transport, Warehouse 4,573 2.3

Real estate 14,250 7.0

Other 753 0.4

Total 202,942 100.0

A broad range of business types use credit guarantees4


英.indd 12 15/06/19 16:2

▶Business Performance

Amount (¥million)

Number of cases

Amount (¥million)Amount (¥million)

Subrogation rate (%)

Amount (¥million)

Number of cases

Fundamental Assets OutstandingGuaranteed Liabilities

Amount (¥million)

2010

2010

2010 2011

2011

2010 2010

2011 2012 2013 2012 2013 2014

2012 2013 2014

2011 2012 2013 20142011 2012 20142013

Subrogation rate equals aggregate amount of guarantee payments divided by the average monthly outstanding guaranteed liabilities in a given year.

Guarantee Acceptances

Subrogation Paid Recoveries

5,404,272

4,793,820

3,891,1724,305,352

230,801243,221

256,292

2014

268,691

1,703,082

1,272,0851,146,353

2,210,458

155,950 24,66121,789 20,867

18,52317,096

137,722123,703

79,720

504,289 500,761 480,883 453,061 429,598

115,23792,537

134,693

83,94185,167

1,066,403

2.88 2.55 2.471.96

98,756

2.18

5,268,183220,572

The following shows details of CGCT's business performance over the last three years. CGCT's fiscal year commences on April 1 and ends on the following March 31.

(Due to rounding up, totals may not match the sum of individual items.)

Balance Sheet

Statement of Receipts and Disbursements

Item FY2012 FY2013 FY2014

Debits

Cash and deposits 250,297 255,043 204,344

Securities 383,802 392,285 399,918

Movables and real estate 7,791 7,695 7,629

Offset account for guaranteed liabilities 4,793,820 4,305,352 3,891,172

Indemnity rights 78,989 63,174 47,866

Miscellaneous accounts 12,085 11,607 10,682

Total 5,526,784 5,035,157 4,561,611

Credits

Fundamental assets 243,221 256,292 268,691

Fund for promoting credit guarantee system reform 0 0 0

Reserve for account balance fluctuation 105,500 118,400 130,700

Liability reserves for guarantee payments 29,882 26,677 24,037

Reserves for amortization of indemnity rights 39,788 33,881 26,170

Retirement allowance 7,598 7,692 7,854

Guaranteed liabilities 4,793,820 4,305,352 3,891,172

Subsidies for indemnity rights 5,310 3,329 1,288

Loans 181,182 179,697 123,119

Miscellaneous accounts 120,483 103,836 88,580

Total 5,526,784 5,035,157 4,561,611

Item FY2012 FY2013 FY2014

Income

Guarantee fees 49,350 44,273 39,700

Deposit interest 69 37 40

Interest and dividends on securities 6,297 6,323 6,162

Interest for indemnity rights; Other 5,909 5,358 4,972

Total 61,626 55,990 50,874

Payments

Business costs 11,615 11,540 11,528

Interest on borrowed money 0 0 0

Credit insurance premiums 20,132 19,258 18,434

Other 2,673 2,074 1,830

Total 34,421 32,872 31,791

Balance of current accounts 27,205 23,118 19,083

Balance of non-recurring accounts -2,455 2,780 5,542

Disposition of fund for promoting credit guarantee system reform 69 72 73

Balance of income and payment for this term 24,819 25,971 24,698

Unit: ¥ million; as at fiscal year-end

Unit: ¥ million; as at fiscal year-end

Business Performance


英.indd 13 15/06/19 16:2

▶

Statistics

Amount (¥million)

Number of cases

Amount (¥million)Amount (¥million)

Subrogation rate (%)

Amount (¥million)

Number of cases

Fundamental Assets OutstandingGuaranteed Liabilities

Amount (¥million)

2010

2010

2010 2011

2011

2010 2010

2011 2012 2013 2012 2013 2014

2012 2013 2014

2011 2012 2013 20142011 2012 20142013

Subrogation rate equals aggregate amount of guarantee payments divided by the average monthly outstanding guaranteed liabilities in a given year.

Guarantee Acceptances

Subrogation Paid Recoveries

5,404,272

4,793,820

3,891,1724,305,352

230,801243,221

256,292

2014

268,691

1,703,082

1,272,0851,146,353

2,210,458

155,950 24,66121,789 20,867

18,52317,096

137,722123,703

79,720

504,289 500,761 480,883 453,061 429,598

115,23792,537

134,693

83,94185,167

1,066,403

2.88 2.55 2.471.96

98,756

2.18

5,268,183220,572

Statistics


英.indd 14 15/06/19 16:2

Japan

Tachikawa

Ikebukuro

Shinjuku

Shibuya

Gotanda

Ota

Kinshicho

Ueno

Katsushika

Senju


Tokyo


Internal Auditor

Planning Sect.



Accounting Sect.










Collection Sect.

Subrogation Sect.




Guarantee Sect.　



Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

(As of April 2015)

























Directors

Auditors

ManagingDirectors

GeneralAffairs

Division



Secretarial Office


Planning Dept.







Collection Dept.

Guarantee Dept.

Ikebukuro Branch

Gotanda Branch

Kinshicho Branch

Shinjuku Branch

Senju Branch

Ueno Branch

Shibuya Branch

Katsushika Branch

Ota Branch

Tachikawa Branch

Hachioji Branch

Tama Office

680

Chairman&

President




▶Organization C

hart

Organization Chart


英.indd 15 15/06/19 16:2


Our Fundamental Philosophy

Our Action Principles

We at CGCT,

by offering credit guarantees,

connect the energy and credit standing

of small and medium enterprises to new possibilities,

and provide strong support

for the advancement of management.

External service, Customer orientation

We attend to customers with attitudes of kindness,

fairness and gratitude.

Internal environment, Ways of working

With new ideas and free discussion,

we aim to make our office

a cheerful and challenging workplace.

Fruitful working lives

We strive for personal development,

with sound bodies and minds.

Japan

Tachikawa

Ikebukuro

Shinjuku

Shibuya

Gotanda

Ota

Kinshicho

Ueno

Katsushika

Senju


Tokyo


Internal Auditor

Planning Sect.



Accounting Sect.










Collection Sect.

Subrogation Sect.




Guarantee Sect.　



Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

Guarantee Sect.　

(As of April 2015)

























Directors

Auditors

ManagingDirectors

GeneralAffairs

Division



Secretarial Office


Planning Dept.







Collection Dept.

Guarantee Dept.

Ikebukuro Branch

Gotanda Branch

Kinshicho Branch

Shinjuku Branch

Senju Branch

Ueno Branch

Shibuya Branch

Katsushika Branch

Ota Branch

Tachikawa Branch

Hachioji Branch

Tama Office

Chairman&

President





Utilizing 50％ post-consumerrecycled paper pulp

We are “Marugamo Oentai,” CGCT’s mascot.

Go,Go, SMEs!



Documents

Annual Report 2015 - 東京信用保証協会 · Annual Report 2015 Credit Guarantee Corporation of Tokyo 英-AnnualReport2015表紙.indd 1-3 15/06/19 16:19. Credit Guarantee Corporation