M&a Capital Partners Co. Ltd. · TSE:6080
M&a Capital Partners — FY2019 Earnings Presentation
38 slides from M&a Capital Partners's earnings presentation, Oct 31, 2019
Slide 1: Presentation Materials for the Earnings Briefing for the Year Ended September 2019
M&A Capital Partners Co., Ltd. Presentation Materials for the Earnings Briefing for the Year Ended September 2019 Aiming to be the world's leading investment bank seeking maximum contributions to clients and the happiness of all employees October 31, 2019
Slide 2: Table of Contents
Table of Contents Ⅰ Company Overview and Strengths of the Company ・・・ 2 Ⅱ Business Environment ・・・ 9 Results for the Year Ended September 2019 and Ⅲ ・・・ 13 Forecast for the Year Ending September 2020 Ⅳ Growth Strategy ・・・ 23 Copyright © M&A Capital Partners Co.,Ltd. All rights reserved. 1
Slide 3: Company Overview and Strengths of the Company
Ⅰ Company Overview and Strengths of the Company Copyright © M&A Capital Partners Co.,Ltd. All rights reserved. 2
Slide 4: Company Overview
Company Overview Trade Name M&A Capital Partners Co., Ltd. Listed Market Tokyo Stock Exchange First Section (Securities Code: 6080) Address 38F, Gran Tokyo North Tower,1-9-1 Marunouchi, Chiyoda-ku, Tokyo Business Content M&A-related services Representative Satoru Nakamura, President and Representati
Slide 5: Business Content
Business Content Business Content M&A-related services are our main business. Characteristics Mainly business succession M&A. We propose solutions through M&A and support their realization for owner managers who have concerns about business succession or are considering liquidation. Business Model W
Slide 6: We aim to be the world's leading investment bank
We aim to be the world's leading investment bank We aim to make the greatest contribution to clients by creating M&A deals with abundant information and an expansive network and solving problems with the know-how we have accumulated. Industry Business reorganization succession M&A M&A Cross-border C
Slide 7: The Company's Strengths (1) - Fee structure convincing for clients
The Company's Strengths 1 - (1) Fee structure that is convincing for clients (1) Contingency fee-based fee structure (No commencement fee or monthly fee) Fee schedule in which clients do not bear expenses until the conclusion of a Memorandum of Understanding. Expenses Required in the Consideration P
Slide 8: The Company's Strengths (2) - Fee based on share price
The Company's Strengths 1 - (2) Fee structure that is convincing for clients (2) Use of fee based on share price - Fees of an M&A intermediary company generally use the Lehman Formula (calculated by multiplying the transaction amount by a certain rate) - The company's calculations of fees are based
Slide 9: Stable Results Making Deals
The Company's Strengths 2 Stable Results Making Deals M&A Capital Partners has produced stable results making deals by focusing on "business succession M&A proposals and advice" for small and medium enterprises using share transfers or business transfers. Through the business integration with RECOF
Slide 10: Business Environment
Ⅱ Business Environment Copyright © M&A Capital Partners Co.,Ltd. All rights reserved. 9
Slide 11: Business Environment: Aging presidents and lack of successors
Business Environment 1 As the ages of company presidents increase, companies lacking successors have become the majority Average Age of Presidents and Rate of Replacement Successors in Companies with a President Aged 60 or More 62 60 59.7 58.4 58 56.6 Successor No successor present 後継者いる present 後継者
Slide 12: Awareness and planning of business succession
Business Environment 2 Despite being aware of the issue of business succession, there is almost no planning for business succession (there is potential demand) Reason for Lack of Progress in Planning of Lack of Plan for Awareness and Planning of Business Succession Business Succession 最優先の経営問題 Highe
Slide 13: Scale of the Business Succession M&A Market
Scale of the Business Succession M&A Market Targets of Business Succession M&A Market Environment Joint stock companies Approx. 2,530,000 companies It is estimated that the targets for business succession M&A number around 230,000 Our company handles 144 deals per year and even the biggest President
Slide 14: Results for the Year Ended September 2019 and Forecast for the Year Ending September 2020
Ⅲ Results for the Year Ended September 2019 and Forecast for the Year Ending September 2020 Copyright © M&A Capital Partners Co.,Ltd. All rights reserved. 13
Slide 15: Number of Deals Made
Number of Deals Made (consolidated) Result for the year Forecast for the year Forecast difference Number of deals 144 140 102.9% Number of Deals Made ・ +25.2% year on year ・ Number of deals strong on non- 150 144 consolidated basis, contributing 140 to Group’s overall number of 130 140 deals 115 (Fa
Slide 16: Earnings Highlights (Consolidated)
Earnings Highlights (Consolidated) Earnings for the Year Ended September 2019 （Consolidated） Net sales 12,592 million yen (+57.0% year-on-year) Ordinary income 5,855 million yen (+85.3% year-on-year) Number of deals 144 deals (+25.2% year-on-year) Number of consultants 126 (+18 year-on-year) ・ On a
Slide 17: Earnings Highlights (Non-consolidated)
Earnings Highlights (Non-consolidated) Earnings for the Year Ended September 2019 (Non-consolidated) M&A Capital Partners RECOF Year-on-year Year-on-year Change Change Net sales 10,918 million yen +69.0% 1,504 million yen +5.5% Ordinary income 5,831 million yen +83.6% 248 million yen +16.6% Number o
Slide 18: Earnings in Relation to Initial Earnings Forecasts
Earnings in Relation to Initial Earnings Forecasts ・ Net sales and ordinary income both significantly exceeded the initial full-year forecast Net sales Ordinary income 13,000 6,000 5,855 Units: Millions of yen 12,592 Units: Millions of yen 12,000 Initial forecast Initial forecast 11,000 Results 5,00
Slide 19: Changes in Earnings
Changes in Earnings (consolidated) Result for the year Forecast for the year Forecast difference Units: Millions of yen Net sales 12,592 11,507 109.4% Ordinary income 5,855 5,187 112.9% Net sales Ordinary income Units: Millions of yen 12,592 Units: Millions of yen 13,000 6,000 5,855 12,000 通期予想 Fore
Slide 20: Overview of Statements of Income (Consolidated)
Overview of Statements of Income (Consolidated) (Units: millions of yen, second line is composition ratio) Year Ended September 2019 Forecast for the Year Ended September Year Ending Year-on-year September 2018 Overview of Performance Change 2020 Net sales 8,018 12,592 + 57.0% 27 large deals close
Slide 21: Overview of Balance Sheets (Consolidated)
Overview of Balance Sheets (Consolidated) (Units: millions of yen, second line is composition ratio) September 30, September 30, 2019 2018 Change Main Factors Causing Change 12,757 18,627 Current assets ＋5,869 Cash and deposits: +5,726 (84.1%) (88.1%) Deferred tax assets +265 Noncurrent 2,403 2,
Slide 22: Market Capitalization
Market Capitalization Market Capitalization Units: 100 million yen Market capitalization 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2013/9/1 2014/9/1 2015/9/1 2016/9/1 2017/9/1 2018/9/1 2019/9/1 ・ Market capitalization has increased approximately eightfold over the six years since listing (Nove
Slide 23: Earnings Forecasts (Consolidated)
Earnings Forecasts (Consolidated) Earnings Forecasts for the Year Ending September 2020 (Consolidated) Net sales 13,706 million yen （+8.9％ year-on-year） Ordinary income 5,905 million yen （+0.9％ year-on-year） Profit attributable to owners of parent 4,054 million yen （+3.3％ year-on-year） Number of dea
Slide 24: Earnings Forecasts (Non-consolidated)
Earnings Forecasts (non-consolidated) Earnings Forecasts for the Year Ending September 2019 (Non-consolidated) M&A Capital Partners RECOF Year-on-Year Year-on-Year Changes Changes Net sales 11,798 million yen +8.1% 1,606 million yen +6.7% Ordinary income 5,866 million yen +0.6% 292 million yen +17.7
Slide 25: Growth Strategy
Ⅳ Growth Strategy Copyright © M&A Capital Partners Co.,Ltd. All rights reserved. 24
Slide 26: Three-year Plan for Number of Deals
Three-year Plan for Number of Deals 1（Consolidated） Three-year Plan for Number of Deals (Year Ending September 2020 to Year Ending September 2022) M&A Capital Partners RECOF [Number of Deals] 260 <M&A Capital Partners> 244 240 Average increase of 20% per year 28 220 <RECOF> 205 200 Average increase
Slide 27: Three-year Plan for Number of Consultants
Three-year Plan for Number of Consultants 2 (Consolidated) Three-year Plan for Number of Consultants (Year Ending September 2020 to Year Ending September 2022) M&A Capital Partners RECOF 240 [Number of Consultants] 220 214 <M&A Capital Partners> 200 Average increase of 25% per year 178 58 <RECOF> 18
Slide 28: Growth Strategy (Non-consolidated)
Growth Strategy (Non-consolidated) <Policies & Initiatives> - Increase number of deals made, maintaining an average increase of 20% per year （Non-consolidated） - Continue hiring consultants, maintaining an average increase of 25% per year （Non-consolidated） - Increase and cultivate target industries
Slide 29: Strengthening of Reactionary Sales: Television Commercials
Strengthening of Reactionary Sales 1 <Expansion of Television Commercials and Addition of New Commercial> [Start of airing on national networks (from October 2019)] In addition to TV Tokyo’s “World Business Satellite,” national network TBS’s Hodo Tokushu (every Saturday evening). [Addition of new co
Slide 30: Strengthening and expansion of referral network
Strengthening of Reactionary Sales 2 <Strengthening and expansion of referral network> [Start of partnership with Mizuho Bank (from August 2019)] - Conclusion of business alliance agreement between Mizuho Bank and the Company to strengthen support for business succession needs of small and medium-si
Slide 31: Strengthening of Reactionary Sales: Seminars and Web
Strengthening of Reactionary Sales 3 <Seminars> [Continue to enhance large-scale M&A seminars held] Year ended September Future 2019 Number held 12 per year Continue to enhance seminars held as with previous year Areas held Tokyo, Osaka, Nagoya, Continue to increase seminars in Tokyo Fukuoka and reg
Slide 32: Topics: Seminars Held in the Year Ended September 2019
Topics 1 Seminars Held in the Year Ended September 2019 In the Year ended September 2019, we held 12 large-scale M&A seminars in Tokyo, Nagoya, Osaka, Fukuoka. Date Held Type Seminar Title Applicants October 2, 2018 M&A Seminar TOYO KEIZAI INC. Management Forum(Nagoya Venue) 200 October 22, 2018 as
Slide 33: Topics: Seminars Scheduled for First Quarter
Topics 2 Seminars Scheduled to be Held in the First Quarter of the Year Ending September 2020 During the First quarter of the year ending September 2020, a total of four large-scale seminars are scheduled to be held in Tokyo, Osaka, Nagoya and Fukuoka. <Large-Scale M&A Seminar> Date Held Type Semina
Slide 34: Establishment of Vietnamese Local Subsidiary of RECOF
Topics 1 August 2019 Establishment of Vietnamese Local Subsidiary of RECOF To mark the 8th anniversary a local subsidiary was established to strengthen cross-border business between Japan and Vietnam RECOF entered the Vietnamese market in October 2011 and has closed cross- border deals between Japan
Slide 35: Transfer of M&A Forum Secretariat Business to RECOF Data
Topics 2 March 2019 Transfer of “M&A Forum” Secretariat Business to RECOF Data Expansion of seminar business earnings by improving branding as neutral M&A infrastructure * M&A Forum was launched in 2005 as a place to conduct activities promoting the development and spread of M&A based on a report by
Slide 36: Effective Expansion of Shareholder Special Benefit Plan after Share Split
Effective Expansion of Shareholder Special Benefit Plan after Share Split When the share split (1:2) scheduled for December 1, 2019 is carried out, there will be no change to the eligibility requirements (shareholders with one or more units of shares) and details (3,000-yen QUO Card) of shareholder
Slide 37: Image of Group Growth
Image of Group Growth <Main synergies in M&A Capital Partners> Enhancement of matching utilizing the strong relations with clients built through reorganization of the industry Decrease in missed deals by improving ability to respond to complex schemes <Main synergies in RECOF> Absorbing M&A Ca
Slide 38: 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