M&a Capital Partners Co. Ltd. · TSE:6080
M&a Capital Partners — FY2020 Earnings Presentation
35 slides from M&a Capital Partners's earnings presentation, Oct 30, 2020
Slide 1: Presentation Materials for the Earnings Briefing for the Year Ended September 2020
M&A Capital Partners Co., Ltd. Presentation Materials for the Earnings Briefing for the Year Ended September 2020 Aiming to be the world's leading investment bank seeking maximum contributions to clients and the happiness of all employees October 30, 2020
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 2020 and III ・・・ 13 Forecast for the Year Ending September 2021 IV Growth Strategy ・・・ 25 Copyright © M&A Capital Partners Co.,Ltd. All rights reserved. 1
Slide 3: I 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 M&A-related services Content Representative Satoru Nakamura, President and Representati
Slide 5: Business Content
Business Content Business Content M&A-related services are our main business. Mainly business succession M&A. We propose solutions through M&A and support their Characteristics realization for owner managers who have concerns about business succession. We provide advisory services for the realizatio
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
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 Ph
Slide 8: The Company's Strengths (2): Fee structure convincing for clients
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: The Company's Strengths: 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: II Business Environment
II Business Environment Copyright © M&A Capital Partners Co.,Ltd. All rights reserved. 9
Slide 11: Business Environment
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 59.9 58.4 58 Successor No successor 56.6 present 後継者いる present 後継者
Slide 12: Business Environment: Awareness 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) Awareness and Planning of Business Succession Things That Seem to Present Difficulties in Business Succession 最優先の経営問題 Highest priority 経営問題
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. 2,550,000 companies It is estimated that the targets for business succession M&A number around 240,000 Our company handles 139 deals per year and even the biggest President
Slide 14: III Results for the Year Ended September 2020 and Forecast for the Year Ending September 2021
III Results for the Year Ended September 2020 and Forecast for the Year Ending September 2021 Copyright © M&A Capital Partners Co.,Ltd. All rights reserved. 13
Slide 15: Number of Deals Made
Number of Deals Made Forecast for the year Forecast for the year Result for the year (revised) (revised) Number of deals (consolidated) 139 138 100.7% Number of Deals Made - -3.5% Year-on-year 180 - Although a record number of 49 deals 170 were closed in 4Q, this was unable to 160 absorb the delay u
Slide 16: Earnings Highlights (Consolidated)
Earnings Highlights (Consolidated) Earnings for the Year Ended September 2020 (Consolidated) Net sales 11,871 million yen (-5.7% year-on-year) Ordinary income 5,050 million yen (-13.7% year-on-year) Number of deals 139 deals (-3.5% year-on-year) Number of consultants 151 (+25 year-on-year) - Althoug
Slide 17: Earnings Highlights (Non-consolidated)
Earnings Highlights (Non-consolidated) Earnings for the Year Ended September 2020 (Non-consolidated) M&A Capital Partners RECOF Year-on-year Year-on-year Change Change Net sales 10,191 million yen -6.7% 1,594 million yen +6.0% Ordinary income 4,957 million yen -15.0% 297 million yen +19.7% Number of
Slide 18: Number of Active Deals (Non-consolidated)
Number of Active Deals (Non-consolidated) Number of Active Deals (Non-consolidated) Units : Deals Number of Active Deals (Non-consolidated) 350 328 300 274 273 272 250 239 224 228 226 214 220 200 197 172 175 150 155 149 139 127 100 109 50 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ended
Slide 19: Changes in Earnings
Changes in Earnings (consolidated) Result for the year Forecast for the year Progress for entire year Units: Millions of yen (revised) (revised) Net sales 11,871 11,865 100.1% Ordinary income 5,050 5,073 99.6% Net sales Ordinary income 14,000 Units: Millions of yen 5,855 Units: Millions of yen 6,000
Slide 20: Impact of spread of novel coronavirus
Impact of spread of novel coronavirus <Impact on results of the spread of novel coronavirus> The full-year forecast for the fiscal year ending September 30, 2021 assumes that economic activities will not significantly slow due to the spread of new infections of novel coronavirus, and we will continu
Slide 21: Overview of Statements of Income (Consolidated)
Overview of Statements of Income (Consolidated) (Units: millions of yen, second line is composition ratio) Year Ended Year Ended September 2020 Forecast for the Year September Ending September 2019 Year-on-year 2021 Overview of Performance Change ■ Although net sales in 4Q were favorable, Net sales
Slide 22: Overview of Balance Sheets (Consolidated)
Overview of Balance Sheets (Consolidated) (Units: millions of yen, second line is composition ratio) September 30, September 30, 2020 2019 Change Main Factors Causing Change Current assets 18,627 21,673 + 3,046 Cash and deposits: +3,408 (88.1%) (90.1%) Deferred tax assets -101 Noncurrent 2,504 2
Slide 23: Market Capitalization
Market Capitalization Market Capitalization Units: 100 million yen Market capitalization 1,800 1,654 1,600 1,532 1,400 1,383 1,200 1,072 1,000 848 1,011 800 803 600 593 400 305 220 200 132 135 0 2013/9/1 2014/9/1 2015/9/1 2016/9/1 2017/9/1 2018/9/1 2019/9/1 2020/9/1 - Market capitalization has incre
Slide 24: Earnings Forecasts (Consolidated)
Earnings Forecasts (Consolidated) Earnings Forecasts for the Year Ending September 2021 (Consolidated) Net sales 14,030 million yen (+18.2% year-on-year) Ordinary income 6,210 million yen (+23.0% year-on-year) Profit attributable to owners of parent 4,173 million yen (+22.5% year-on-year) Number of
Slide 25: Earnings Forecasts (Non-consolidated)
Earnings Forecasts (non-consolidated) Earnings Forecasts for the Year Ending September 2021 (Non-consolidated) M&A Capital Partners RECOF Year-on-Year Year-on-Year Changes Changes Net sales 12,014 million yen +17.9% 1,792 million yen +12.4% Ordinary income 6,081 million yen +22.7% 372 million yen +2
Slide 26: IV Growth Strategy
IV Growth Strategy Copyright © M&A Capital Partners Co.,Ltd. All rights reserved. 25
Slide 27: Three-year Plan: Number of Deals (Consolidated)
Three-year Plan 1 : Number of Deals (Consolidated) Three-year Plan for Number of Deals (Year Ending September 2021 to Year Ending September 2023) M&A Capital Partners RECOF [Number of Deals] 35 <M&A Capital Partners> Average increase of 20% per year 30 <RECOF> Average increase of 10% per year 26 wil
Slide 28: Three-year Plan: Number of Consultants (Consolidated)
Three-year Plan 2 Number of Consultants (Consolidated) Three-year Plan for Number of Consultants (Year Ending September 2021 to Year Ending September 2023) M&A Capital Partners RECOF [Number of Consultants] <M&A Capital Partners> Average increase of 25% per year 65 <RECOF> Average increase of 10% pe
Slide 29: Group Synergies
Group Synergies <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 Capital
Slide 30: 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 31: Strengthening of Reactionary Sales: TV Commercials
Strengthening of Reactionary Sales 1 <Broadcasting of Television Commercials> TBS network “Houdo Tokushu” TV Tokyo network “World Business Satellite” Continue to air commercials. Implement promotion activities using a total of six patterns of airing commercials. Copyright © M&A Capital Partners Co.,
Slide 32: Strengthening and expansion of partner network
Strengthening of Reactionary Sales 2 Strengthening and expansion of partner 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-sized
Slide 33: Strengthening of advertising, Web and marketing strategy
Strengthening of Reactionary Sales 3 Strengthening of advertising, Web and marketing strategy The number of inquiries is increasing every year. We will further strengthen the system. - Attract customers through Web advertising - Promote media exposure and advertising activities - Marketing actively
Slide 34: Topics: Release of M&A Matching Platform
Topics October 2020 Release of M&A Matching Platform operated by RECOF DATA, which has handled M&A infrastructure RECOF DATA launched a matching platform to provide support for business continuity and succession of small and medium-sized companies leveraging the Group's know-how by utilizing a varie
Slide 35: 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