Nihon M&A Center Holdings Inc. · TSE:2127
Nihon M&A Center — Q2 FY2015 Earnings Presentation
32 slides from Nihon M&A Center's earnings presentation, Oct 30, 2015
Slide 1: Results of Operations for the Second Quarter of the Fiscal Year Ending Mar 31, 2016
Results of Operations for the Second Quarter of the Fiscal Year Ending Mar 31, 2016 October 30, 2015 Nihon M&A Center Inc. Assisting companies to grow and prosper through M&As The information included in this presentation, such as industry trends and analysis, future plans, and forecasts, is based o
Slide 2: Medium-term Management Objectives
Medium-term Management Objectives Issuance of paid-in stock options whose terms for exercise are linked to operating results Ratio of exercisable paid-in stock options is linked to ordinary income achieved Ratio of exercisable paid-in Period Ordinary income (annual) stock options (1) FY2015 or Over
Slide 3: Long-term Changes in Operating Results
Long-term Changes in Operating Results The Company aims record-high results for the sixth consecutive period Changes in Sales (¥mn) Changes in Ordinary Income (¥mn) 14,000 13,300 7,500 12,227 6,710 12,000 6,500 6,310 10,547 5,496 5,500 10,000 4,500 8,000 7,214 3,437 6,005 3,500 2,834 6,000 5,008 2,1
Slide 4: Actual Results and Forecasts
Actual Results and Forecasts Actual results exceeded forecasts for the fifth consecutive period Changes in Sales (¥mn) Changes in Ordinary Income (¥mn) 14,000 7,500 当初予想 当初予想 Original forecast Original forecast 12,227 6,310 実績 Actual results 6,500 実績 Actual results 12,000 10,547 5,496 5,500 10,000 1
Slide 5: Summary of Income Statement
Summary of Income Statement Net income for the Second Quarter of FY 2015 increased 36.2% YoY FY2015 FY2015 FY2014 FY2014 YoY (Full-year (Full-year (Million yen, percent) (2Q Results) Forecast) (2Q Results) Results) Total % % Total % Total % Total % Sales 6,865 100.0 124.7 13,300 100.0 5,506 100.0 12
Slide 6: Quarterly Results of Operating Income
Quarterly Results of Operating Income Operating income growing steadily, reached record high for first half of period Consolidated operating income for the second quarter (Unit: ¥mn) First half of FY2015: 3,527 当期の業績 Earnings for FY2015 3,527 Change from FY2014: +22.4% First half of FY2014: Second h
Slide 7: (Reference) Sales and Profits by Business
(Reference) Sales and Profits by Business Breakdown of consolidated sales into M&A sales and other sales (yen, mn) FY 2014 FY 2015 FY 2012 FY 2013 FY 2014 (2Q) (2Q) Total % Total % YoY Total % Total % YoY Total % YoY Sales 7,214 100.0% 10,547 100.0% 146.2% 5,506 100.0% 12,227 100.0% 115.9% 6,865 100
Slide 8: Balance Sheet Summary
Balance Sheet Summary Maintaining a sound balance sheet (yen, mn, %) Assets End of 2Q End of FY2015 % Change FY2014 I Current assets 9,676 54.0 951 8,725 (Cash and deposits) (9,847) (38.2) 811 (6,036) (Other current assets) (2,828) (15.8) 139 (2,689) II Fixed assets *8,231 46.0 206 *8,025 *Long-term
Slide 9: Number of Deals Closed
Number of Deals Closed Number of deals for first six months increased by about 40% YoY (from 150 to 209) (Number of cases, yen, mn) FY2012 FY2013 FY2014 FY2015 FY Cumu FY Total FY 1Q 2Q 3Q 4Q 1Q 2Q 3Ｑ 4Q 1Q 2Q -lative Total Total total Total deals (individual) *1 207 43 58 75 80 256 65 85 101 87 338
Slide 10: Number of deals closed for 2Q (Jul. – Sep.) 1/2
Number of deals closed for 2Q (Jul. – Sep.) 1/2 Number of deals closed for 2Q (101 cases) reached a quarterly record high Sellers Buyers Transaction scheme Business outline Region Business outline Region 1 Cram school operator Kanto Cram school operator Kanto Stock transfer 2 Agribusiness company To
Slide 11: Number of deals closed for 2Q (Jul. – Sep.) 2/2
Number of deals closed for 2Q (Jul. – Sep.) 2/2 (cont’d from previous page) 26 Chemicals wholesaling Kansai Fuel retailer Tokai, Hokuriku Stock transfer 27 Auto parts wholesaler Tokai, Hokuriku Chemicals wholesaling Kansai Stock transfer 28 Furniture retailer Kyushu, Okinawa Furniture retailer Kanto
Slide 12: Employee Numbers
Employee Numbers Number of consultants increased by 22 compared to the end of FY2014 (from 146 to 168). The Company will continue to actively hire mid-career consultants in FY 2015. (No. of employees) End of End of End of End of End of End of End of FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Sep. 201
Slide 13: TOPICS(1) Marketing by Region
TOPICS(1) Marketing by Region July: Company held M&A seminars for Kyushu managers in 8 cities (7 prefectures) Approx.1,500 applicants ⇒Over 100 participants at each venue M&A seminar in Miyazaki (July 8) M&A seminar in Hakata (July 16) M&A seminar in Nagasaki (July 14) http://www.nihon-ma.co.jp/ (ｃ)
Slide 14: TOPICS(2) Marketing by Industry
TOPICS（2） Marketing by Industry Strengthening support for M&A Publishing newly-revised edition of in the worker dispatching industry “Case Study of Medical Care M&A Transactions” Edited and written by Hiroyuki Kurihara Shintaro Taniguchi Senior Manager in General Manager, Medical charge of the Worke
Slide 15: TOPICS(3) Marketing by Business Theme
TOPICS（3） Marketing by Business Theme The Company’s first book on the theme Seminar on ROE improvement of industry restructuring M&A and M&A strategy Written by Tsuneo Watanabe Daisuke Nishikawa General Manager Senior Manager Industry Restructuring Support Office Corporate Strategy Department Nihon
Slide 16: TOPICS(4) Selected as a constituent of JPX-Nikkei Index
TOPICS(4) Selected as a constituent of “JPX-Nikkei Index 400” in August Nihon M&A Center Inc. became the first M&A assisting company to be selected as a constituent of the index. We will continue to endeavor to improve our corporate value to meet the expectations of investors. JPX-Nikkei Index 400 i
Slide 17: Dividends
Dividends Forecast full-year consolidated dividend payout ratio of 35% Trends in dividend per share After taking into account the 200-for-1 share split of April 1, (2012/4/1付の株式200分割および2014/4/1付の株式3分割考慮後) 2012, and the 3-for-1 share split of April 1, 2014 (Original) forecasts Results Actual payout D
Slide 18: Company Overview
Appendix Company Overview http://www.nihon-ma.co.jp/ (ｃ) Nihon M&A Center Inc. 17
Slide 19: Introduction
Introduction Nihon M&A Center Inc. specializes in providing M&A intermediary services between small- and medium-sized companies, among which competition is not significant. The M&A market has high growth potential due to the succession problem becoming more serious and the spread of industry res
Slide 20: Corporate Profile (as of September 30, 2015)
Corporate Profile (as of September 30, 2015) Company name Nihon M&A Center Inc. Established April 1991 M&A intermediary services (specializing in M&A between small- and medium-sized companies); Business outline M&A-related businesses: corporate revitalization support, company reorganization, MBOs, e
Slide 21: Corporate History
Corporate History Current Chairman and Founder Yasuhiro Wakebayashi and President - Before Suguru Miyake worked at Olivetti Japan selling computers to accounting establishment firms and regional financial institutions throughout Japan. The current M&A network is based on the network cultivated at th
Slide 22: Business Model Platform for M&A market
Business Model Platform for M&A market M&A info M&A info network network Accounting firms Accounting firms Regional M&A centers Regional M&A centers About 644 nationwide About 644 nationwide Nihon M&A Center Info Regional financial Info Info Regional financial Info institutions institutions About 29
Slide 23: TOPICS (1) Organizational Change
TOPICS (1) Organizational Change General Shareholders Meeting Board of Corporate Auditors Board of Directors General Planning Headquarters were = Newly established in April 2015 newly established in April 2015. It is responsible for early development Board of Executive Officers of sales personnel an
Slide 24: Position of the Company
Position of the Company Size of deal (small) Small-and medium-sized M&A boutique firms × Difficulties in establishing Nihon M&A networks with other firms Center Collaboration Area- and industrial sector- Regional financial × Nationwide and all industrial institutions dedicated type M&A sectors servi
Slide 25: Potential Size of Business Succession M&A Market
Potential Size of Business Succession M&A Market We close more than 200 M&A deals per year as intermediary => Major Potential market size is larger and listed companies All companies SME Profitable Successor undecided approx. x 24% approx. x 30% approx. x 65% = approx. 120,000 2.5 mn 600,000 180,000
Slide 26: The markets we are targeting
The markets we are targeting Coverage not only of SMEs, which are our specialty, but also of medium-sized enterprises and micro enterprises Mega (1) Strengthening direct marketing (2) Responding to the realignment of industries In addition to the conventional method of We are placing full-time staff
Slide 27: M&A Intermediary Workflow
M&A Intermediary Workflow Seller Buyer Individual consultation Nihon M&A Center Retainer fee Signing of advisory agreement Material provision Business valuation Company analysis, industrial sector Explanation of executive summary research and the selection of (name not disclosed) prospective buyers
Slide 28: Initiatives to Revitalize the Network
Initiatives to Revitalize the Network 644 regional M&A centers "Information Program for Qualified Professionals" Activities to support robust M&A information network • International M&A meetings • M&A senior expert training school • Executive Membership of Nihon M&A Tie-ups with 196 (among a total o
Slide 29: Human Resource Development and Knowledge Sharing
Human Resource Development and Knowledge Sharing Training curriculum was improved and made more practical by education specialists (M&A consultants at the Company until last year) under the direct control of Managing Director, Chief Director of General Planning Initial training Monthly training Step
Slide 30: Background to Increase in Number of M&A Deals
Background to Increase in Number of M&A Deals External factors • Fierce competition • Era of company consolidation • Development of corporate and Increase in the number of Increase in the number of tax law buyers companies sold 1. Expansion of existing 1. Successor problem business • Fewer children
Slide 31: Shareholders
Shareholders Trend of distribution by category of shareholder: The percentage held by foreign corporations stands at about 39% March 31, 2015 September 30, 2015 金融商品 Financial その他のOther 金融商品 Financial その他のOther Corporations, 法人等, 3% 3% Corporations, 取引業者, Instruments 取引業者, Instruments 法人等, 3% 3% Dea
Slide 32: Finally
Finally I. Management principles Management principles Contribute to the continuation and growth of companies through the M&A business Company goal Focus on strict compliance and corporate social responsibility II. Purpose of listing M&As are a public institution Increase social trust and crea