M&a Capital Partners Co. Ltd. · TSE:6080
M&a Capital Partners — FY2021 Earnings Presentation
60 slides from M&a Capital Partners's earnings presentation, Oct 29, 2021
Slide 1: 2021 Financial Results
2021 Financial Results October 29th, 2021
Slide 2: Table of Contents
Table of Contents 1 Management Philosophy and Company Overview P2 2 Results P10 3 Characteristics and Strengths of the Company P21 4 The Company’s Social Mission and Role in the M&A Industry P36 5 Growth Strategy P49 1 Presentation Materials for the Earnings Briefing for the Year Ended September 202
Slide 3: 1. Management Philosophy and Company Overview
1. Management Philosophy and Company Overview
Slide 4: Our Management Philosophy
Our Management Philosophy Aiming to be the world's leading investment bank seeking maximum contributions to clients and the happiness of all employees 3 Presentation Materials for the Earnings Briefing for the Year Ended September 2021 Copyright © 2021 M&A Capital Partners Co., Ltd. All rights reser
Slide 5: Our Action Guidelines
Our Action Guidelines Wholeheartedly responding to decisions. We w ill continually pursue higher knowledge, service levels, teamwork and n ew fi el ds as o ne of th e w or l d’s l e adi ng g r o up s of pr ofe ssi o nal s and, a bo ve al l , 1 will work to achieve the solutions and gains our custome
Slide 6: Company Overview
Company Overview Trade Name M&A Capital Partners Co., Ltd. Listed Market Tokyo Stock Exchange First Section (Securities Code: 6080) Head Office 38F, Gran Tokyo North Tower,1-9-1 Marunouchi, Chiyoda-ku, Tokyo Location Business M&A-related services Content Representative Satoru Nakamura, President and
Slide 7: Business Content: M&A-related services
Business Content M&A-related services Business We provide advisory services for the realization of M&A standing between the transferor Content (seller) and the transferee (buyer) from an independent and impartial position. We propose M&A-focused solutions and support them to implementation for compa
Slide 8: Deals: M&A coverage spanning a wide range of industries and businesses
Deals M&A coverage spanning a wide range of industries and businesses Pharmacy Wholesaling Manufacturing IT/ information Real estate Retail and distribution Other Pharmacy industry services Real estate brokerage Building materials Supermarkets Lease/rental wholesaling Metal products Data mining Mult
Slide 9: Business Areas
Business Areas Japan’s leading professional group able to provide optimal M&A for all clients <Clients> Overseas cross-border/industry Business continuity/growth restructuring/restructuring strategy support support SMEs/large enterprises Database/publishing Communication/human resource development C
Slide 10: One Company Newly Participated in MACP in October 2021
One Company Newly Participated in MACP in October 2021 Mirai Financial Planning joined the MACP Group as corporate revitalization and business revitalization professionals Trade Name Mirai Financial Planning Co., Ltd. Large Head Office Location 9F Saiwai Building, 1-3-1 Uchisaiwaicho, Chiyoda-ku, To
Slide 11: 2. Results for the Fiscal Year Ended September 30, 2021
2. Results for the Fiscal Year Ended September 30, 2021
Slide 12: Number of Deals Made
Number of Deals Made The number of deals made exceeded forecasts and reached the highest level on record at 172 (up 23.7% year on year) Large deals* were also at the highest level on record at 36 (up 50.0% year on year) Number of Deals Made Result for the Forecast for vs. Forecast for year the year
Slide 13: Consolidated Financial Highlights for the Fiscal Year Ended September 30, 2021
Consolidated Financial Highlights for the Fiscal Year Ended September 30, 2021 Achieved the best performance and highest number of deals closed since the company was founded Net sales Ordinary income 15,161 million yen 6,588 million yen (+27.7% year-on-year) (+30.4% year-on-year) Number of Deals Lar
Slide 14: Non-consolidated Financial Highlights for the Fiscal Year Ended September 30, 2021
Non-consolidated Financial Highlights for the Fiscal Year Ended September 30, 2021 M&A Capital Partners Co., Ltd. RECOF Year-on-year Year-on-year Result Result Change Change Net sales 13,833 million yen +35.7% 1,079 million yen -32.3% Ordinary income 6,889 million yen +39.0% -89 million yen - Number
Slide 15: Number of Active Deals
Number of Active Deals The number of active deals was the highest on record at 360 (+9.8% year on year) There was a significant increase in new deals, and the number of deals is expected to remain stable in the 17th fiscal period Number of Active Deals (Non-consolidated) 400 350 347 350 360 328 328
Slide 16: Changes in Earnings
Changes in Earnings In 8 years since listing (year ended September 2013), sales have increased rapidly by more than 13x. Units: Millions of yen Result for the year Forecast for the year Progress for Entire Year Net sales 15,161 14,030 108.1% Ordinary income 6,588 6,210 106.1% Net sales Ordinary inco
Slide 17: Overview of Statements of Income (Consolidated)
Overview of Statements of Income (Consolidated) for the Fiscal Year Ende September 30, 2021 Achieved record net sales, operating income and ordinary income (Units: millions of yen, second line is composition ratio ) Year Ended September 2021 Year Ended September 2021 Year-on-year Main Factors Causin
Slide 18: Overview of Balance Sheets (Consolidated)
Overview of Balance Sheets (Consolidated) for the Fiscal Year Ended September 30, 2021 Solid financial condition backed by stable shareholders equity (Units: millions of yen, second line is composition ratio) September 30, 2021 September 30, 2021 Change Main Factors Causing Change 21,673 27,720 Ca
Slide 19: Market Capitalization
Market Capitalization Highest growth rate among M&A intermediation companies listed on the Tokyo Stock Exchange First Section Market capitalization has increased more than 15 times over the 8 years since listing. Market Capitalization Units: 100 million yen Market Capitalization 2,500 2,024 2,000 1,
Slide 20: Consolidated Earnings Forecasts for the Fiscal Year Ending September 30, 2022
Consolidated Earnings Forecasts for the Fiscal Year Ending September 30, 2022 Earnings The number of active deals will remain strong, and Forecasts the best performance on record is forecast Net sales Ordinary income 16,220 million yen 6,823 million yen (+7.0% year on year) (+3.6% year on year) Numb
Slide 21: Non-consolidated Earnings Forecasts for the Fiscal Year Ending September 30, 2022
Non-consolidated Earnings Forecasts for the Fiscal Year Ending September 30, 2022 Earnings Forecasts M&A Capital Partners Co., Ltd. RECOF Year-on-year Year-on-year Change Change Net sales 14,368 million yen +3.9% 1,448 million yen +34.3 Ordinary income 7,083 million yen +2.8% 104 million yen - Numbe
Slide 22: 3. Characteristics and Strengths of the Company
3. Characteristics and Strengths of the Company
Slide 23: M&A Capital Partners Corporate Identity
M&A CAPITAL PARTNERS CORPORATE IDENTITY Aiming to be the world's leading investment bank s e e k i n g maximum contributions to clients and the happiness of all employees
Slide 24: Clear Fee Structure Maintained Since the Company Was Founded
Clear Fee Structure Maintained Since the Company Was Founded The clear “no commencement fee” system enabling customers to consult with peace of mind has continued since the company was founded Conclusion of Audit Calculation of Finding the Deciding the Initial consultation agreement with Conclusion
Slide 25: The Fee Amount Is Determined Using the Lehman Formula Based on Share Value
The Fee Amount Is Determined Using the “Lehman Formula Based on Share Value” We use the “Lehman Formula based on share value” that leads to overwhelmingly lower costs as the formula for calculating fees in a way that convinces customers What is the Lehman Formula? A general calculation formula used
Slide 26: Overwhelmingly Low Commission Rate Using the Lehman Formula
Overwhelmingly Low Commission Rate Using the Lehman Formula Based on Share Value Overwhelmingly low commission rate within the M&A intermediary industry Lehman Formula based on share value devised with the customer in mind Balance Sheet Lehman Formula based on Lehman Formula based on the total asset
Slide 27: M&A Capital Partners Business Model
M&A Capital Partners Business Model A “true M&A intermediary” that does not rely on just referrals A unique business model in the industry made possible by overwhelming ability to make direct proposals [Other companies] Business model based on “referrals” [MACP] Business model based on “ability to m
Slide 28: Business Succession M&A and Business Growth M&A
Business Succession M&A and Business Growth M&A “Business succession M&A” resolving the absence of successor, which continues to be in demand and “business growth M&A” leading to growth with an eye to the future that has been increasing in recent years Management’s reasons for transferring the busin
Slide 29: Large Deals Where M&A Capital Partners Excels
Large Deals Where M&A Capital Partners Excels Realizing an extraordinary average value of share transfer in the M&A intermediary industry by working on many difficult large deals Handling difficult large deals 21.9% 34 large M&A deals 1 in 5 deals are Total number of large deals with a commission de
Slide 30: M&A Capital Partners Corporate Identity
M&A CAPITAL PARTNERS CORPORATE IDENTITY Aiming to be the world's leading investment bank seeking maximum contributions to clients and the happiness of all employees
Slide 31: Compensation Structure Attracting the Best Talent in Japan
Compensation Structure Attracting the Best Talent in Japan The highest level of compensation in Japan attracts the best talent in the country, enabling the company to provide the highest level of M&A services ■ 2021 ranking of companies by annual income (top 5) Average annual Average age Rank Compan
Slide 32: Reasons the Best Talent in Japan is Required
Reasons the Best Talent in Japan is Required Highly specialized and diverse M&A operations Importance of a sense of responsibility and mission to growth the Japanese economy Content of highly specialized and diverse M&A operations (1) Consideration/preparation phase (2) Approach/negotiation phase (3
Slide 33: Program for Developing the World's Best Talent
Program for Developing the World’s Best Talent We have created a training program for further developing the best talent in Japan into the best talent in the world Generous training Accumulation of knowledge OJT roadmap Creation of database Stock of knowledge on successful cases Systematic organizat
Slide 34: Network that has Achieved Explosive Growth
Network that has Achieved Explosive Growth Individual growth is a source of growth of the organization as a whole Corporate culture emphasizing deep-rooted teamwork since the company was founded Employees in charge shake Culture of mutual support hands with all employees Various employees have a pos
Slide 35: Overwhelming Productivity Per Person in the M&A Industry
Overwhelming Productivity Per Person in the M&A Industry Overwhelming productivity per person in the M&A industry proving that we have the best consultants in Japan Net sales per consultant Ordinary income per consultant 135.61 million yen 67.54 million yen (+10.4% year-on-year) (+13.1% year-on-year
Slide 36: Wholeheartedly responding to customers' resolutions
Wholeheartedly responding to customers’ resolutions. M&A Capital Partners’ passion for customers since the company was founded Satoru Nakamura M&A with heart Passion for customers that has continued since the company was founded in 1987 RECOF founder Masaaki Yoshida DNA passed on from the founders o
Slide 37: 4. The Company's Social Mission and Role in the M&A Industry
4. The Company’s Social Mission and Role in the M&A Industry
Slide 38: The Social Mission to Be Fulfilled by the Company
The Social Mission to Be Fulfilled by the Company Save as many SMEs as possible from closure, and contribute to growth of the Japanese economy through M&A Approx. 60,000 companies require A social issue in the headlines Absence of approximately 1.27 million successors support each year Approx. 1.27
Slide 39: SMEs Choosing to Close Business and Economic Loss
SMEs Choosing to Close Business and Economic Loss Increase in SMEs choosing to close business Further accelerated by uncertainty caused by COVID-19 Trend of suspensions, closures and dissolutions of SMEs Economic loss caused by suspensions and closures in 2020 Incidents per Total net sales Employees
Slide 40: Four Choices of Company Owners
Four Choices of Company Owners Company owners are faced with four options when determining business succession Company value M&A (succession 2 Public offering 3 to third party) Generation change Succession to 1 successor Closure (liquidation) Founding Maturation Second founding period Time Growth pe
Slide 41: The Choice of M&A Saves SMEs from Closure
The Choice of M&A Saves SMEs from Closure M&A maintains employees’ jobs and relationships with business partners The personal suretyship is also lifted, making it the optimal means of maximizing founder’s profit Option ● Advantages ▲ Disadvantages ▲Termination of business (inconveniencing business p
Slide 42: Our Contribution to Sustainability of Japanese Economy through M&A
Our Contribution to Sustainability of Japanese Economy through M&A Our contribution to sustainability of the Japanese economy ever since the Company was founded is over 1.2144 trillion yen In the 16th fiscal year, the level of contribution was 260.2 billion yen and 7,716 jobs in terms of sustainabil
Slide 43: Continually Growing M&A Market
Continually Growing M&A Market M&A deals involving Japanese companies are at the highest level on record The M&A market is expected to be lively after COVID-19 4,000 M&A of Japanese companies by OUT-IN foreign companies 3,500 M&A of foreign companies by IN-OUT Japanese companies 3,000 M&A of Japanes
Slide 44: Continually Increasing M&A Advisory Firms
Continually Increasing M&A Advisory Firms M&A advisory firms have rapidly increased since 2020 Number of M&A advisory firms registered with the Small and Medium Enterprise Agency Cumulative number of registrations Number of M&A advisory firms registered with the “Small and Medium Enterprise Agency’s
Slide 45: Coordinated Initiatives by Government and the Private Sector to Address Social Issues
Coordinated Initiatives by Government and the Private Sector to Address Social Issues We have begun working with the Small and Medium Enterprise Agency to provide managers of SMEs with understanding of M&A and enable M&A advisory firms to conduct appropriate M&A in order to resolve the business succ
Slide 46: The M&A Intermediary Industry Is Moving from Competition to Cooperation
The M&A Intermediary Industry Is Moving from Competition to a New Era of Cooperation The “M&A Intermediaries Association” was established on October 1, 2021 as an industry group aimed at the sound advancement of the M&A industry and developing and maintaining the Japanese economy Directors of the M&
Slide 47: Role as a Leading Company in the M&A Industry
Role as a Leading Company in the M&A Industry Toward the creation of a sound M&A industry to save approximately 60,000 business operators per year from black-ink bankruptcy Number of suspensions, closures and dissolutions Number of bankruptcies related to COVID-19 Approximately 60,000 business opera
Slide 48: DNA Passed On from the Founders of M&A in Japan
DNA Passed On from the Founders of M&A in Japan Philosophy and visual symbol of RECOF since it was founded in 1987 We hope every M&A deal we have been involved in to be the best M&A for our clients. 47 Presentation Materials for the Earnings Briefing for the Year Ended September 2021 Copyright © 202
Slide 49: Social Significance of M&A Capital Partners
Social Significance of M&A Capital Partners Dr i ve “ fai r M&A” to r eal i z e a sound futur e for the Japanese economy 48 Presentation Materials for the Earnings Briefing for the Year Ended September 2021 Copyright © 2021 M&A Capital Partners Co., Ltd. All rights reserved
Slide 50: 5. Growth Strategy
5. Growth Strategy
Slide 51: M&A Capital Partners Corporate Identity
M&A CAPITAL PARTNERS CORPORATE IDENTITY A i m i n g t o b e t h e world's leading investment bank s e e k i n g m a x i m u m c o n t r i b u t i o n s t o c l i e n t s a n d the happiness of all employees
Slide 52: Current Business Environment
Current Business Environment Ages of company presidents are higher than ever The number of companies without successors also remains high Average age of company presidents 65.1% of companies do not have a successor 61.0 (years) 60.1 Two in three companies do not have a successor 60.0 59.0 58.0 57.0
Slide 53: High Latent Needs for Business Succession
High Latent Needs for Business Succession 70% of company owners are conscious of business succession but have not reached the point of planning It is necessary to dig up latent needs for M&A Gap between business succession awareness and planning Issues in implementation of business succession Past d
Slide 54: Scale of the Business Succession M&A Market
Scale of the Business Succession M&A Market There is still a large business succession M&A market, and approaches will continue to be made to companies with business succession needs Targets of Business Succession M&A It is estimated that the targets for business succession M&A number around 240,000
Slide 55: Growth Scenario Envisaged by the MACP Group
Growth Scenario Envisaged by the MACP Group To b e t h e w o r l d ' s leading investment bank To be the world’s leading Resolve the business succession problem and investment bank support the growth of SMEs for the development of the Japanese economy One of the world’s leading M&A companies Flagshi
Slide 56: The MACP Group's Medium-term Vision
The MACP Group’s Medium-term Vision Three-year plan for the number of deals and the number of consultants required to fulfill our social mission (Year Ending September 2022 to Year Ending September 2024) Number of Deals Number of consultants M&A Capital Partners RECOF M&A Capital Partners RECOF 30 5
Slide 57: Relocation of Head Office to Achieve Growth
Relocation of Head Office to Achieve Growth The head office will be relocated to Tokyo Midtown Yaesu on January 1, 2023 to expand business in pace with growth and lead to further development Depiction of completed Tokyo Midtown Yaesu Good access directly connected to Tokyo Station Source: Mitsui Fud
Slide 58: Activities to Raise Awareness of M&A
Activities to Raise Awareness of M&A Role of communicating “M&A” to the public as a leading company in the industry Television commercial lineup <Regular commercial slots> TV TOKYO World Business Satellite (WBS), Fuji Television Nichiyo Hodo THE PRIME, TBS Hodo Tokushu ✓10 patterns of “lion presiden
Slide 59: Activities to Raise Awareness to Learn about Fair M&A
Activities to Raise Awareness to Learn about Fair M&A Drive a sound M&A industry and strengthen seminars communicating “fair M&A” to owners of SMEs Seminars providing information on “fair M&A” will be held on November 12 (Fri) and 19 (Fri) Communication of “fair M&A” to owners of SMEs through semina
Slide 60: Handling of These Materials
Aiming to be the world's leading investment bank seeking maximum contributions to clients and the happiness of all employees <Handling of These Materials> The plans, forecasts and strategies, etc. contained in these materials are forecasts on future performance based on information available at the