Nihon M&A Center Holdings Inc. · TSE:2127
Nihon M&A Center — Q3 FY2021 Earnings Presentation
84 slides from Nihon M&A Center's earnings presentation, Feb 14, 2022
Slide 1: IR Report: Financial Results Report for Q3 FY2021
IR Report Financial Results Report for Q3 FY2021 Year to March 2022 TSE code ２１２７ 2022.2.14 Summary of Investigation Report Policies for prevention of reoccurｒence Message to investors Nihon M&A Center Holdings Inc. Suguru Miyake, President Celebration of our 30th anniversary - April 25, 2021 The in
Slide 2: 目次
目次 Summary of Investigation Report Policies for prevention of Company Overview P61～P76 Reoccurrence Message to investors P1～P24 Our Vision P62 Q3 FY 2021 Results Review ・ Dividends P25～P40 Nihon M&A Center 30 years P63 Q3 Results Review (9 months） P26 To Become the Top Global Integrated M&A Company
Slide 3: Summary of Investigation Report, Policies for prevention of reoccurrence
Summary of Investigation Report Policies for prevention of reoccurrence Message to investors 14 February 2022 Nihon M&A Center Holdings Inc. Suguru Miyake, President
Slide 4: Greeting
Greeting Recently the problem of erroneous apportionment of sales to accounting periods at our subsidiary Nihon M&A Center Inc. through inappropriate internal reporting has caused concern and great trouble to our shareholders, for which I sincerely apologise. This is our company’s 30-year anniversar
Slide 5: Apology
Apology Sales were apportioned to wrong periods due to inappropriate internal reporting 20 December 2021 Announcement of commencement of Research Committee investigation 24 January 2022 Announcement of postponement of results release planned for 28 January 14 February 2022 Publication of Investigati
Slide 6: We have caused trouble
We have caused trouble Between 20 December 2021 and 14 February Share price (close) JPY3,025・・・・・＞JPY1,833 Market capitaliｚation JPY1,018 bn・・・・・＞JPY616.9 bn We have caused great concern and trouble. I apologise sincerely for this. Copyright©2022 Nihon M&A Center Inc. All rights reserved. 4
Slide 7: Members of the Research Committee
Members of the Research Committee （Titles omitted） Chair Attorney-at-Law Yo Yamagishi （Miyakezaka Sogo Law Offices） Member Attorney-at-Law Yuya Inoue （Miyakezaka Sogo Law Offices） Member Certified Public Accountant Masahiko Kume （Aoyama Trust Accounting Firm Co. Ltd.） Member Certified Public Account
Slide 8: What happened
What happened Accounting for sales in the wrong period due to inappropriate internal reporting Content Due to inaccurate internal reporting of sales certain periods for sales apportionment were incorrect Method False recording of contracts for sales when reporting on the internal system （this applie
Slide 9: The financial impact of revisions to prior year results ①
The financial impact of revisions to prior year results ① Reported Restated Adjustment Period Item Change(%) (A) (B) (B-A) Sales 32,938 34,273 1,335 4.1% Operating profit 14,459 15,541 1,082 7.5% Period 31 (Year to March 2022) Ordinary profit 14,560 15,643 1,082 7.4% 9 months to Profit attributable
Slide 10: The financial impact of revisions to prior year results ②
The financial impact of revisions to prior year results ② Reported Restated Adjustment Period Item Change(%) (A) (B) (B-A) Sales 36,130 34,795 △1,335 △3.7% Operating profit 16,408 15,336 △1,072 △6.5% Period 30 Ordinary profit 16,540 15,468 △1,072 △6.5% (Year to March 2021) Profit attributable to par
Slide 11: Why did it happen？
Why did it happen？ １．Operating environment forming the background to the occurrence ①Massive pressure on performance results from the EXCEED 30 campaign ②The operating environment had significantly worsened due to the coronavirus ③Pressure to commit to financial results ④ Insufficient training for n
Slide 12: Why was it not discovered？
Why was it not discovered？ １．Unpredictable methods The methods for falsifying the internal accounting were unpredictable ２．Dysfunctional internal reporting The internal structure for whistleblowing is too inactive ３．Incorrect reporting of cases of advanced negotiations Incorrect reporting of cases w
Slide 13: Preventing reoccurrence: Management with compliance focus
Preventing reoccurrence Management with compliance focus There have been shortfalls in our compliance consciousness ① Whilst it concerns internal reporting there were false reports concerning important definitive agreements. ② It concerns over 10 sales departments and 80 employees ③ It increased ove
Slide 14: Preventing reoccurrence: More stringent compliance management ①
Preventing reoccurrence １．More stringent compliance management ① ⚫ Formulation of management principals on compliance priorities and announcement of related management policies February Declaration of compliance priority by management Creation of company purpose document with inclusion of compliance
Slide 15: Preventing reoccurrence: More stringent compliance management ②
Preventing reoccurrence 1. More stringent compliance management ② ⚫ Review of methods adopted for 360 degree employee evaluations and methods for management of quarterly financial targets February Decision on adoption of new human resources system March Announcement of new policies for achievement o
Slide 16: Preventing reoccurrence: Rebuilding internal controls ①
Preventing reoccurrence ２．Rebuilding internal controls ① ⚫ Strengthening of audit and supervisory departments February Commence recruitment of specialist Creation of appropriate dedicated department and space for performance of compliance duties ⚫ Clarification of the responsibilities for the inappr
Slide 17: Preventing reoccurrence: Rebuilding internal controls ②
Preventing reoccurrence ２． Rebuilding internal controls ② ⚫ Reconstruct the business flow for reporting and accounting for sales February Clarification and regulation of sales reporting Following month Day 1 Submission of contract copy and original copy of confirmation of definitive agreement Day 7
Slide 18: Preventing reoccurrence: Cultural change ①
Preventing reoccurrence ３．Cultural change ① １．In addition to prioritising financial results and growth, creation of culture for priority of ethics Clarify ethics policies under the leadership of the president ２．Changing sales culture Hitherto there has been too much pressure within the sales departm
Slide 19: Prevention of reoccurrence: Cultural change ②
Prevention of reoccurrence ３．Cultural change ② ４．Create an open culture with people reporting any possible concern, whilst also shifting to a culture of transparency allowing open discussions. ５．Conduct M&A professionally with a higher sense of pride and dignity. ６．Create culture for open dialogue a
Slide 20: Monitoring the prevention of a reoccurrence
Monitoring the prevention of a reoccurrence For prevention of a reoccurrence it will be of utmost importance to have measures which are practical and effective. Monitoring 1. Facts on whether or not there has been implementation of reform to systems and training 2. Measurement of effectiveness Annua
Slide 21: Director Actions - 1
Director Actions - 1 Suguru Miyake, President and Representative Director 50% reduction in monthly remuneration To the expiration of the current term of office Voluntary return of remaining monthly remuneration in full For the same period as above Takamaro Naraki, Executive Vice President and Direct
Slide 22: Director Actions - 2
Director Actions - 2 Masahiko Otsuki, Managing Director 10% reduction in monthly remuneration To the expiration of the current term of office Voluntary return of 10% per month To the expiration of the current term of office Yasuhiro Wakebayashi, Chairman and Representative Director 20% reduction in
Slide 23: The fundamentals
The fundamentals １．Scope of impact of the irregularities This time the irregularities impacted internal reporting, the result of which was limited to sales being accounted for in the wrong periods ２．Impact on sales force ① Impact on alliance partners Our president Miyake will seek to minimise the im
Slide 24: The fundamentals
The fundamentals 3. Impact on our employees ① Organisation We shall create a new organisation to prevent a reoccurrence. As a result there will be some reduction in middle management, while at the same time developing will be promoted, which will minimise the overall impact on the organisation. ② Di
Slide 25: Equity story
Equity story １．There is no change to our prognosis that we are poised for realizing continued high growth ① Reinforcement is still required for the 600,000 profitable companies which lack a successor. ② There is no change to the strengthening, education and motivation of our workforce. ２．There is no
Slide 26: Future commitment
Future commitment We have caused a lot of concern and trouble to our shareholders and the market as a result of the wrong apportionment of sales and delay to the results announcement. We shall do our utmost to ensure that there are no future irregularities with a focus by all our management on compl
Slide 27: Q3 FY2021 Results Review ・ Dividends
Q3 FY2021 Results Review ・ Dividends
Slide 28: Q3 Results Review (9 months)
Q3 Results Review (9 months） 30th anniversary – third quarter（９ months) Sales and ordinary profit at record highs FY2021 FY2020 9 months result 9 months result Change (YoY) (restated) 34,273 27,832 +23.1 % Profitability Sales (¥mn) Ordinary profit (¥mn) 15,643 13,655 +14.6 % Total number of employee
Slide 29: Income Statement Key Data
Income Statement Key Data Q3 Sales : +23.1％ YoY Ordinary profit : +14.6％ YoY Q3 ＦＹ２０２1 Q3 FY2020 ■■FY2021 FY2021 ■*Revised Original FY2020 （restated) YoY (restated) full-year forecast full-year ｆorecast (restated) (¥mn、％) Total; % % Total % ■■Total % Total % Total % Sales 34,273 100.0 +23.1 27,832 1
Slide 30: Quarterly Development of Ordinary Profit
Quarterly Development of Ordinary Profit Reached 90.9% of original forecast ordinary profit for the full year (¥17.2bn) Quarterly ordinary profit Results relative to full-year forecast (¥mn) （¥mn） 18,000 Q4 Q3 Q3 FY2021 result (restated) 16,000 3 Q2 1,813 15,643 14,000 1,463 Q1 4,102 +14.6％ YoY 12,0
Slide 31: Record of transactions closed
Record of transactions closed 9 months transactions closed＋17.0％ yoy +17.0％ FY2018 FY2019 FY2020 FY2021 Full Full Full （Units: no. of transactions） 3Q Year １Q 2Q 3Q 4Q Year １Q 2Q 3Q 4Q Year １Q 2Q ３Q Total number of transactions closed *1 1-1 （by no. of companies） 220 770 234 285 224 142 885 226 229
Slide 32: Record of M&A sales and number of new sell-side mandates
Record of M&A sales and number of new sell-side mandates Q3(Oct-Dec) number of new sell-side mandates +32.2 yoy FY2018 FY2019 FY2020 FY2021 （Units: no. of transactions, Full Full Full million yen） 3Q Year １Q 2Q 3Q 4Q Year １Q 2Q 3Q 4Q Year １Q 2Q ３Q M&A sales *1 1-1 8,228 27,965 7,520 9,814 8,249 5,60
Slide 33: Balance Sheet Key Data
Balance Sheet Key Data Maintaining a healthy balance sheet End-March 2021 Assets （¥mn、％） End-Dec 2021 % Change (restated) Ⅰ Current assets 49,734 85.6 3,401 46,333 Cash and deposits 45,318 78.0 2,455 42,863 Accounts receivable 4,010 6.9 961 3,049 Others 406 0.7 -14 420 Ⅱ Fixed assets 8,395 14.4 619
Slide 34: Number of Employees
Number of Employees Strong progress in recruitment and we plan to recruit actively in the current year too ➡Fulfilling medium-term growth plan with buoyant M&A Number of employees (consolidated) End of End of End of End-Dec Jan 1 FY2018 FY2019 FY2020 2021 2022 Including number of people newly hired
Slide 35: Financial Performance of M&A sales and Other sales
Financial Performance of M&A sales and Other sales Outstanding growth in Other sales, driven by TPM listing support and BATONZ QoQ comparison YoY comparison Q3 FY2021 Q3 FY2020 FY2020 FY2019 FY2018 (restated) (restated) (restated) (¥mn) Total % YoY Total % Total % YoY Total % YoY Total % M&A sales *
Slide 36: Update on Affiliate (1)-1
Update on Affiliate （1）-1 TOKYO PRO Market（TPM） IPO support activities Healthy increase in new J-Adviser mandates J-Adviser contracts progress Our actual results of listing support Prefectures where new J-Adviser mandates were originated As of end-Jan 2022 94 J-Adviser mandates August： Kanagawa pref
Slide 37: Update on Affiliate (1)-2
Update on Affiliate （1）-2 6th IPO IPO celebration event in the home prefecture of Niigata after the listing Sato Sangyo Co., Ltd. Benefits from TOKYO PRO Market Attendees included official dignitaries, local financial institutions and customers 1 Enhanced trust as a listed company leading to a furth
Slide 38: Update on Affiliate (2)
Update on Affiliate （2） Online M&A matching by BＡＴＯＮＺ Cumulative number of transactions closed +80% in April-December User registrations Transactions closed (cumulative) (Unit: No. of people) 136,682 (Unit: No. of transactions) 120,000 １,446 1600 1400 100,000 104,748 1200 +80％ 80,000 1000 60,000 800
Slide 39: Dividend per Share
Dividend per Share Planning a special 30th anniversary dividend in FY2021 Dividend forecast Pay- Dividend paid out at start of year Actual interim dividends ratio 18.00 Actual annual dividends Dividend Breakdown Dividend Breakdown (%) Original forecasts for annual dividends Original forecasts for in
Slide 40: Dividend Payments and Market Capitalization
Dividend Payments and Market Capitalization Aiming for sustained long-term growth Pay-out ratio Sustained at over 40% since FY2015 Dividends and the pay-out ratio Market capitalization （From Apr 2017) (¥mn) （百万円） （％） (¥100mn) Dividends 5,000 4,626 50 Pay-out Ratio 14,000 4,500 4,239 48 12,000 4,000
Slide 41: Share Ownership
Share Ownership Foreign share ownership 53.2% March 31, 2021 September 30, 2021 Treasury stock Other Corporations Treasury stock Other Corporations 1.8％ 2.7％ 1.8％ 2.9％ Individuals 個人 16.2％ Individuals Individuals 17.2％ 17.2％ 17.2％ Foreign Foreign Foreign Financial Financial 53.2％ Financial 53.4％ ％ 金
Slide 42: Mid-term Management Targets & Long-term Vision
Mid-term Management Targets & Long-term Vision
Slide 43: 12-year Results Record
12-year Results Record 11th consecutive period of higher sales and profit (¥mn) 40,000 Sales Ordinary profit result Ordinary profit forecast 34,795 35,000 32,009 30,000 28,463 Compound annual growth rate of ordinary profit 24,625 25,000 in the last 12 years ＝ 24.6％ 20,000 19,069 15,468 14,467 14,778
Slide 44: Last Three Mid-term Management Targets and The Trend in Ordinary Profit
Last Three Mid-term Management Targets and The Trend in Ordinary Profit All three of the last mid-term management targets have been reached early As the industry leader in SME Ｍ＆Ａ we have displayed steady growth and established a unique position Period 3 mid-term target (¥mn) Consolidated ordinary p
Slide 45: New Mid-term Targets (Released on July 30, 2021)
New Mid-term Targets (Released on July 30, 2021) Our 30th anniversary marks the start of a second phase to exceed the first Formation of new mid-term targets and long-term vision Period 4 mid-term targets, starting in the year to March 2022 *(Original forecasts) (¥mn, ％) FY2021 FY2022 FY2023 Consoli
Slide 46: New Mid-term Management Targets and Long-term Vision
New Mid-term Management Targets and Long-term Vision (Released on July 30, 2021) Our long-term vision is for sustainable growth beyond the new mid-term targets Period 4 mid-term targets –In figures- (¥mn) 55,000 Consolidated sales 51,100 Consolidated ordinary profit 50,000 44,400 Target 15％ CAGR 45,
Slide 47: Current Paid-in Stock Options and Performance Targets
(Reference) Current Paid-in Stock Options and Performance Targets ¥15bn ordinary profit target reached a year early Conditions on Ratio of exercisable paid-in Period ordinary profit Notes on ordinary profit stock options (annual) Over FY2018 result 1. FY2018 11.5 billion yen ¥12.53 bn With (1) and (
Slide 48: Features
Features
Slide 49: Features (1): Strengthening of sales presence in ASEAN
Features （1) Strengthening of sales presence in ASEAN Singapore and Malaysia offices become locally incorporated Establishment of presence in new Transactions closed overseas in 2021 ※Sales as at M&A transaction ASEAN locations Seller Buyer Country Industry Sales Country Industry Sales Thailand clas
Slide 50: Features (2): M&A Conference 2021
Features (2) Commemorating our 30th anniversary M&A Conference ２０２１ Record number of registrations November 5, 2021 Large scale online event drawing on all our group’s knowledge 43 presentations on topics such as business succession difficulties, business management solutions and our powerful corpor
Slide 51: Features (3): V COMPASS company valuation system
Features(3) V COMPASS company valuation system using transaction comps Adopted for the first time by a financial institution January 11, ２０２2 Introduced at The Bank of Okinawa The Bank of Okinawa Nihon M&A Center Inc. President President and Representative Director Mr. Masayasu Yamashiro Suguru Miyi
Slide 52: Features (4)
Features (4) Strengthening the flow of information to acquiring companies to enable successful M&A Supporter of Nikkei Business M&A Open Day regular series of Innovation Forum seminars ▲ Friday December 17, 2021 Hybrid event ▲ Regular seminars for owners considering M&A or in an M&A process. Also ex
Slide 53: Features (5): Search Fund Japan
Features （5) Search Fund Japan Investment from Fund 1 in company in need of successor First transaction operating with Process for this form of business the nationwide search fund succession Funding for search and M&A, provision of support and information Relationship with local financial institutio
Slide 54: Features (6): Publishing of 4 M&A related books
Features （6) Publishing of 4 M&A related books Introducing the unique knowledge and wealth of experience of Nihon M&A Center with our 30-year history of transaction support Published on Published on Published on Published on Oct. 22 Oct. 29 Nov. 1 Dec. 17 At the forefront of developments in the indu
Slide 55: Sustainability Initiatives (1)
Sustainability Initiatives （１） Environmental Social and Governance (ESG) practice ⚫ Human rights ⚫ Environmental policy ⚫ Compliance ⚫ Labor practices and ⚫ Response to climate ⚫ Risk management diversity change Governance ⚫ Anti-corruption Social ⚫ Health and safety Environment ⚫ Consideration for
Slide 56: Sustainability Initiatives (2)-1: Skill matrix (board members)
Sustainability Initiatives (2)-1 Skill matrix 1 (board members) transformation Brand strategy Administration Sustainability Division head International development Management management Compliance HR practice Accounting Investment IOT, Digital experience Consulting Financing, Marketing Execution bus
Slide 57: Sustainability Initiatives (2)-2: Skill matrix (senior corporate officers)
Sustainability Initiatives (2)-2 Skill matrix 2 (senior corporate officer) transformation Brand strategy Administration Sustainability Division head International development Management management Compliance HR practice Accounting Investment IOT, Digital experience Consulting Financing, Marketing Ex
Slide 58: Sustainability Initiatives (3)
Sustainability Initiatives （3） Enabling the continual growth of society through friendly M&A support, strengthening of the foundations for corporate management and sustaining and increasing employment Our M&A intermediary activities provide economic benefits Resolving social problems 1 Number of com
Slide 59: Number of Transactions Closed in Q3 (1/4)
Number of Transactions Closed in Q３ (1/4) 110 transactions closed, 220 by number of companies ※Not including adjusted transactions Selling company Acquiring company Industry classification Region Industry classification Region 1 Energy Chugoku, Shikoku Energy Tokai, Hokuriku 2 Interior finish work K
Slide 60: Number of Transactions Closed in Q3 (2/4)
Number of Transactions Closed in Q３ (2/4) Selling company Acquiring company Industry classification Region Industry classification Region 26 Property business Kanto Furniture wholesale Kanto 27 Pharmacy / drugstore Kansai Pharmacy / drugstore Kanto 28 Truck transportation Hokkaido,Tohoku Transportat
Slide 61: Number of Transactions Closed in Q3 (3/4)
Number of Transactions Closed in Q３ (3/4) Selling company Acquiring company Industry classification Region Industry classification Region 57 Chemical manufacturing Kanto Industrial waste management Kansai 58 Industrial waste management Tokai, Hokuriku Industrial waste management Tokai, Hokuriku 59 L
Slide 62: Number of Transactions Closed in Q3 (4/4)
Number of Transactions Closed in Q３ (4/4) Selling company Acquiring company Industry classification Region Industry classification Region 88 Truck transportation Kansai Warehousing Kansai 89 Manpower dispatching Kanto Warehousing Kanto 90 Web marketing Kanto Customised software development Kanto 91
Slide 63: Company Overview
Company Overview IIIANihon MaA Center up SO.
Slide 64: Our Vision
Our Vision 「 Aiming to become the top global integrated M&A company 」 Became Japan’s top M&A intermediary company 1991 2001 2011 2021 (year) Aiming to become the Start-up phase Becoming Japan’s top M&A intermediary company top global integrated M&A company TSE 1st Section listing in 2007 Transition
Slide 65: Nihon M&A Center 30 years
Nihon M&A Center 30 years Becoming a Rapid growth global leading Establishment IPO period M&A company period (run up) (hop) (skip) (jump) 10ｔｈ 20ｔｈ 30ｔｈ 40,000 Sales (￥mn) ＦＴＳＥ4Good Index Series October 2021 FTSE Blossom Japan Index June 2021 Transition to a holding 35,000 company structure Entry to
Slide 66: To Become the Top Global Integrated M&A Company
To Become the Top Global Integrated M&A Company Number of transactions closed Number of mandated projects, number of transactions closed Customer satisfaction ◆Nihon M&A center recognized Optimal matching and post-merger integration by GUINNESS WORLD RECORDS TM as the best-selling mergers and Broad
Slide 67: Corporate Profile (End-Dec 2021)
Corporate Profile (End-Dec 2021) Leading company in M&A intermediary services with a track record of over 7,000 completed transactions Company name Nihon M&A Center Holdings Inc. Established April 1991 *Transition to a holding company structure taken place in October 2021 Business outline Group mana
Slide 68: Corporate History
Corporate History ★We have been profitable since the second year of our history and have continuously paid a dividend ⚫ Chairman Yasuhiro Wakebayashi and President Suguru Miyake worked at Olivetti Japan. They Prior to had responsibility for sales of computers nationally to accounting firms and regio
Slide 69: Business Model: A Platform for The M&A Market
Business Model A Platform for The M&A Market Top M&A information network Collaboration agreement figures as of end-Dec 2021 Network Information Accounting firms …1,017 Regional M&A centers Regional banks Information …Collaboration agreements with 95 (out of a total of 99) Information Shinkin banks …
Slide 70: Becoming An Integrated M&A Company
Becoming An Integrated M&A Company Nihon M&A Center becoming a hub for specialized high quality group companies Business succession, growth strategy consulting Introductions PMI Information Start of Company Negotiation /dialogue services project valuation with principals /closing Market research Pri
Slide 71: The Strengths of Nihon M&A Center
The Strengths of Nihon M&A Center Never let any competitor catch up Differentiation through service, superiority without competing on price ◆ Very strong network for M&A information 1. Strong systems for developing Regional financial institutions, accountants, large financial valuable information in
Slide 72: Our Workflow as An M&A Intermediary
Our Workflow as An M&A Intermediary Consultation Retainer Signing of advisory agreement fee Provision of materials Valuation Company analysis, sector research, selection of potential buyers Preparation of teaser (anonymous) Explanation of teaser (anonymous) Preparation of investment memorandum Signi
Slide 73: Holding Company Organization Structure
（Reference） Holding Company Organization Structure (October 1, 2021) Holding company structure Nihon M&A Center Holdings Inc. organization structure Nihon M&A Center Holdings Inc. Shareholders Annual General Meeting Audit and other committees Board of Directors Nihon M&A Center Inc. Corporate Value
Slide 74: Nihon M&A Center Inc. Organization Structure
72 International Related Group ASEAN promotion Companies Copyright©2022 Nihon M&A Center Inc. All rights reserved. Div. H.Q. Outbound M&A promotion Corporate Planning Office General Affairs Dept. Administration Human Resources Dept. H.Q. Nihon M&A Center Inc. Organization Structure ⚫ IPO sponsorship
Slide 75: New Organization Structure (1)
New Organization Structure (１） Establishment of the Growth Strategy Division as a 5th division To strengthen our services for mid-cap companies Sales Headquarters Independent sales division from FY2021 Alliance Management Growth Strategy Strategy Management Industry Focus Large Financial Division In
Slide 76: New Organization Structure (2)
New Organization Structure （２） 3 newly created Management Divisions reporting directly to the President Creative Management Division ⚫ Support for venture businesses ⚫ Informing about the importance of growth strategies for SMEs, including for venture businesses Sector innovation Digital Management
Slide 77: Human Resources Training
Human Resources Training Subsidy system for training of new recruits and further development of key employees Internal training External training Step up training Training for new recruits Regular training for each level ⚫ Understanding of our company and ⚫ Analysis of case studies for Monthly train
Slide 78: Human Resource Development Plan
Human Resource Development Plan A layered approach for thoroughness. We aim to achieve fast results from the training For Senior executive officers and above. 育成プランの強化の柱 Core to strengthened training plan layer Senior Creating and implementing growth Executive offsites executives Goal 4 strategies f
Slide 79: Business Environment
Business Environment IIIANihon MaA Center up SO.
Slide 80: Strong Increase in Succession Outside Family
（Reference） Strong Increase in Succession Outside Family Succession outside family has increased to over 65% Shift in background of company presidents viewed by length of term of office 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 35 - 40 years 83.5 9.2 3.7 3.7 30 - 35 years 82.5 7.4 6.5 3.7 25 – 30
Slide 81: Distribution of the Age of Owners & Changes in the Average Age of Retirement
（Reference） Distribution of the Age of Owners & Changes in the Average Age of Retirement Increase in per centage of SME owners aged over 70 Divide between companies with and without succession plan (chart 1） Age distribution of SME owners (in 5-year categories) Changes in owners average retirement a
Slide 82: SME Owner Age in 2025
（Reference） SME Owner Age in 2025 There could be circa 600,000 companies to go out of business by 2025, Even though they are profitable. SME owner ages in 2025 (number of people) of which half have not yet got a successor Circa 1.27mn Companies And half these are profitable Under 70 Over 70 （circa 7
Slide 83: M&A Market Potential
M&A Market Potential There is a potential market in excess of ¥20 trillion Business succession potential market estimate Ratio of Number of M&A Number of companies Sales per M&A Employees companies with market Our position/initiative companies with no transaction no successor size successor New mark
Slide 84: Lastly
Lastly Ⅰ. Corporate ethos Corporate ethos Corporate aim Management priority on adherence to compliance and Assisting companies to continue and prosper through M&A corporate social responsibility Ⅱ. To investors Increase market value Return profits to shareholders We aim to increase market value thro
Nihon M&A Center Holdings — Q3 FY2021 Earnings Presentation on 6ix