Nihon M&A Center Holdings Inc. · TSE:2127
Nihon M&A Center — Q3 FY2015 Earnings Presentation
31 slides from Nihon M&A Center's earnings presentation, Jan 29, 2016
Slide 1: Results of Operations for the Third Quarter of the Fiscal Year Ending Mar 31, 2016
Results of Operations for the Third Quarter of the Fiscal Year Ending Mar 31, 2016 January 29, 2016 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 on
Slide 2: 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 3: 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 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 Third Quarter of FY 2015 increased (YoY124.5%) FY2015 YoY FY2015 FY2014 FY2014 (Million yen, percent) (3Q Results) (Full-year Forecast) (3Q Results) (Full-year Results) Total % % Total % Total % Total % Sales 11,278 100.0 122.8 13,300 100.0 9,181 100.0
Slide 6: Quarterly Results of Operating Income
Quarterly Results of Operating Income Operating income growing steadily, reached record high for the third quarter Consolidated operating income for the third quarter (Unit: ¥mn) Aggregate of first three quarters of FY2015 5,790 First quarter Second quarter Third quarter Earnings for Change from FY2
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 (3Q) (3Q) Total % Total % YoY Total % Total % YoY Total % YoY Sales 7,214 100.0% 10,547 100.0% 146.2% 9,181 100.0% 12,227 100.0% 115.9% 11,278 10
Slide 8: Balance Sheet Summary
Balance Sheet Summary Maintaining a sound balance sheet (yen, mn, %) Assets End of 3Q End of FY2015 % Change FY2014 I Current assets 10,580 56.7 1,854 8,725 (Cash and deposits) (7,805) (41.8) (1,769) (6,036) (Other current assets) (2,775) (14.9) (85) (2,689) II Fixed assets *8,080 43.3 54 *8,025 *Lo
Slide 9: Number of Deals Closed
Number of Deals Closed Number of deals for first nine months increased by about 30% YoY (from 251 to 327) ⇒Record number of cases for one quarter (118 cases) (Number of cases, yen, mn) FY FY2013 FY2014 FY2015 2012 Cumu FY FY FY 1Q 2Q 3Q 4Q 1Q 2Q 3Ｑ 4Q 1Q 2Q 3Q -lative Total Total Total total Total d
Slide 10: Number of deals closed for 3Q (Oct. - Dec.) 1/2
Number of deals closed for 3Q (Oct. - Dec.) 1/2 Record number of contracts for one quarter (118 cases) Sellers Buyers Transaction Business outline Region Business outline Region scheme 1 Food manufacturing Chugoku, Shikoku Food manufacturing Chugoku, Shikoku Stock transfer 2 Sheet metal Kanto Civil
Slide 11: Number of deals closed for 3Q (Oct. - Dec.) 2/2
Number of deals closed for 3Q (Oct. - Dec.) 2/2 (cont’d from previous page) 31 Dispensing pharmacy Kanto Dispensing pharmacy Hokkaido, Tohoku Stock transfer 32 Dispensing pharmacy Kansai Dispensing pharmacy Hokkaido, Tohoku Stock transfer 33 Dispensing pharmacy Kanto Information providing services K
Slide 12: Employee Numbers
Employee Numbers Number of consultants increased by 33 compared to the end of FY2014 (from 146 to 179). The Company will continue to actively hire mid-career consultants in FY 2016. (No. of employees) End of End of End of End of End of End of End of FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Dec. 201
Slide 13: TOPICS（1） Initiatives for Industry Restructuring
TOPICS（1） Initiatives for Industry Restructuring Industry restructuring seminars at five venues across Japan in November and December Tsuneo Watanabe General Manager, Industry Restructuring Support Office Nihon M&A Center Inc. Written by Tsuneo Tokyo Osaka Sendai Nagoya Fukuoka Watanabe December 15
Slide 14: TOPICS（2） Seminars on Marketing by Industry
TOPICS（2） Seminars on Marketing by Industry IT Software Industry Worker Dispatching Industry Medical Care Industry Held at five venues Held at three venues Held at eight venues across Japan across Japan across Japan Yusuke Seya Hiroyuki Kurihara Shintaro Taniguchi Industry Senior Manager in General
Slide 15: TOPICS（3） Opening of Fukuoka Office
TOPICS（3） Opening of Fukuoka Office, with seven to eight staff planned 1,500 persons applied Date Place Opening of Fukuoka Office July 16 Hakata on April 1, 2016 for All Kyushu Prefectural July 6 Kita-Kyusyu Seminars July 10 Kumamoto July 14 Nagasaki July 15 Saga July 7 Oita July 8 Miyazaki July 9 K
Slide 16: 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 17: Company Overview
Appendix Company Overview http://www.nihon-ma.co.jp/ (ｃ) Nihon M&A Center Inc. 16
Slide 18: 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 19: Corporate Profile
Corporate Profile (As of the end-December 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
Slide 20: 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 21: 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 661 nationwide About 661 nationwide Nihon M&A Center Info Regional financial Info Info Regional financial Info institutions institutions About 29
Slide 22: Organizational Chart
Organizational Chart 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 and improvemen
Slide 23: 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 24: 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 25: 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 26: 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 27: Initiatives to Revitalize the Network
Initiatives to Revitalize the Network 661 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 197 (among a total o
Slide 28: 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 29: 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 30: 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 31: 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