Ir Japan Holdings Ltd. · TSE:6035
Ir Japan — 9M FY2021 Earnings Presentation
33 slides from Ir Japan's earnings presentation, Feb 19, 2021
Slide 1: Financial Results for the Nine Months of Fiscal Year Ending March 31, 2021
Financial Results For the Nine Months of the Fiscal Year Ending March 31, 2021 (April 1, 2020–December 31, 2020) February 19, 2021 IR Japan Holdings, Ltd. (6035)
Slide 2: Disclaimer
This presentation is made by IR Japan Holdings, Ltd. (hereinafter, “the Company”) solely for the disclosure of the financial statements, and not published for the purpose of soliciting sales or purchases of securities in Japan, the United States, nor any other regions. In addition, the Company makes
Slide 3: 1. Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2021
1. Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2021 3
Slide 4: Nine Months of Fiscal 2021: Financial Highlights
Nine Months of Fiscal 2021: Financial Highlights We achieved record-high sales and profits for the nine months of fiscal 2021. 9M FY2021 9M FY2020 （Apr. 2020―Dec. 2020） （Apr. 2019―Dec. 2019） Amount Change from Change Amount （Millions of Previous Period （Millions of yen） （Millions of yen） yen） （%） Ne
Slide 5: Nine Months of Fiscal 2021: Cost Breakdown
Nine Months of Fiscal 2021: Cost Breakdown SG&A expenses increased due to continued proactive investment in human resources. (Millions of yen) Breakdown Item 9M FY2021 9M FY2020 Change （Apr. 2020―Dec. 2020） （Apr. 2019―Dec. 2019） Variable Costs Outsourcing 439 447 −7 (Costs of Sales） Fixed Costs Pers
Slide 6: Nine Months of Fiscal 2021: Main Financial Points
Nine Months of Fiscal 2021: Main Financial Points With regard to the progress of SR consulting for listed companies, the degree of urgency was loosened due to the COVID-19 pandemic. On the other hand, TOBs involved in heated contests for corporate control waged by strategic buyers, and the hostile T
Slide 7: Quarterly Sales
Quarterly Sales 1Q 2Q 3Q 4Q 9,700 （forecast） （Millions of yen） 7,682 2,584 4,827 1,905 4,134 ＋133％ 3,837 1,107 1,699 +12% 3,470 923 3,210 909 ＋20％ ＋2％ 1,160 +47% 1,723 676 887 ＋2％ ＋31％ 949 1,230 843 ＋22％ ＋40％ ＋13％ 791 801 ＋5％ ＋5％ ＋1％ 1,173 862 1,111 ＋6％ 869 766 ＋29％ −12％ ＋13％ 2,169 2,379 +9% 1,223 1
Slide 8: Quarterly Operating Profit
Quarterly Operating Profit 4,700 （Millions of yen） 3,626 (Forecast) 1Q 2Q 3Q 4Q 1,308 825 −2% 844 ＋341％ 690 1,434 ＋197％ 1,157 232 296 ＋207% 1,010 158 ＋87％ 275 781 −25％ 203 −22％ 198 ＋39％ 550 107 ＋85％ 303 −23％ 1,346 269 120 315 ▲4％ −4％ 1,242 125 +161％ ＋8.3％ ＋31％ 164 −34％ 152 −83％ 27 +353％ 579 −16％ 486
Slide 9: Status of Large-Scale Projects
Status of Large-Scale Projects Number of Contracts and Estimated Sales Amount of Large-Scale Projects (As of October 30, 2020) (Millions of yen) First Half Second Half Total Result 2Q Announcement From 3Q Onward Cases Amount Cases Amount Cases Amount Cases Amount FY2021 （Announced on Oct. 30, 2020)
Slide 10: Approach to the Full-Year Earnings Forecast
Approach to the Full-Year Earnings Forecast Nomal projects Large-scale projects (Projects with sales of ¥50 million or more) ¥9.7 billion (Forecast) ¥7.68 billion (Results) 47 4.7 3.24 32.4 4.44 44.4 5.0 50 FY2020 FY2021 (Forecast） 10
Slide 11: Pipeline of Large-Scale Projects
Pipeline of Large-Scale Projects* Type of Project Clients Type of Contract Content Contest for Corporate Control Listed company (Mkt. Cap>¥500b) FA・PA TOB Contest for Corporate Control Listed company (Mkt. Cap>¥50b) FA・PA Business Strategy, M&A Contest for Corporate Control Listed company (Mkt. Cap>
Slide 12: Intensification of Corporate Restructuring and Contest for Corporate Control
Intensification of Corporate Restructuring and Contest for Corporate Control The number of domestic TOBs (tender offers) reached a record-high level of about 60 (excluding treasury stock TOBs). The quickening of corporate restructuring in Japan is conspicuous as a harbinger of changing times. Number
Slide 13: Quickening Activity of Company Reorganizations in Japan
Quickening Activity of Company Reorganizations in Japan We are seeing concrete and rapid progress in dramatic corporate actions such as group reorganizations, mergers, asset sales, review of strategic capital tie-ups, the dissolution of parent subsidiary dual listings. TOB Dissolution of Parent Subs
Slide 14: Quickening Activity of Company Reorganizations in Japan: Activists
Quickening Activity of Company Reorganizations in Japan. Activists have entered a phase of executing event-driven strategies, such as hostile TOBs and demands for extraordinary shareholders meetings. Proposal Fund name Target Company Requirements period 3d Investment TOSHIBA 2020/6 Shareholder propo
Slide 15: Activity of Activist in Japan
Activity of Activist in Japan Number of activist funds active in Japan U.S. and European activists 44 Asian activists Domestic activists 36 23 24 21 17 13 12 13 10 9 7 7 7 5 5 3 3 1 2 2 8 8 5 6 3 3 3 2014 2015 2016 2017 2018 2019 2020 [Definition of the number of funds] Data Source: IR Japan Tabulat
Slide 16: Global Activist Trends
Global Activist Trends Percentage of Companies on Main Stock Exchanges/Indices with Activist Shareholders 100% Percentage refers to companies that have confirmed activist shareholders as of December 2020 90% 80% 70% 60% 50% 90% 40% 30% 59% 51% 20% 10% 21% 19% 17% 17% 14% 10% 0% Dow S&P 500 Nikkei NY
Slide 17: Arrival of the Era of Major Restructurings
Arrival of the Era of Major Restructurings A huge M&A market is being created for contests for corporate control Major Listed Shareholders/ Hostile TOB Hostile Hostile TOB Strategic proxy fight Companies Hostile proxy fight Activists Buyers As the era of major restructurings begins, contest for corp
Slide 18: Establishment of the Foundation of a Unique Equity Consultancy
Establishment of the Foundation of a Unique Equity Consultancy in the Era of Major Restructuring Shareholder Composition of Corporate Japan Optimal use of capital market data through AI Domestic institutional Proprietary AI shareholders 21.7% Non-stable and a Global Research Individual Foreign insti
Slide 19: Establishment of Japan Originated Investment Bank
Establishment of Japan Originated Investment Bank Established Japan Originated Investment Bank to dramatically expand our investment- banking business As a differentiated investment bank born in Japan that respects Japanese corporate culture, corporate values, and shareholder values, we have develop
Slide 20: SR Consulting
A Specialized Group that Optimally Handles Equity Consulting and M&A Executives in the Era of Major Restructuring A Specialized Group that Optimally Handles Equity Consulting and M&A Executives in the Era of Major ＪＯＩＢ Restructuring ●Acquisitions, consolidations and divestitures ● Financial advisory
Slide 21: The Company's Long-Term Goals
The Company’s Long-Term Goals The Current SR (“Shareholder Relations”) Market (the broad market measure which includes TA (“Transfer Agency”) SR Market The Group’s current market share: 3 billion yen TA Market (share breakdown: 60% of SR Market narrow measure + TA Market) narrow measure (95 billion
Slide 22: Review of TSE's Market Segments
Review of TSE’s Market Segments The Japan Exchange Group plans to revise its current five market segments into three market segments: the prime market, the standard market, and the growth market by April 1, 2022. The trend of corporate restructuring is expected to accelerate further due to the effec
Slide 23: Support for MBOs
Support for MBOs Even in privatizations such as MBOs, the ability of specialized FA groups to design and implement sophisticated schemes based on our advanced and abundant experience in the shareholder control structure is highly evaluated. Number of MBOs Our Support for MBOs 2020 12 MAMEZOU HOLDI
Slide 24: Transfer Agency Business
Transfer Agency Business Entrustments with 72 companies have been completed, and the number of shareholders under administration reached 376,168 as of December 31, 2020. We continue to pursue strategic business development from the perspective of defending the company from activist and hostile TOBs,
Slide 25: Transfer Agency Business
Transfer Agency Business We will utilize the innovation that is our strong point, such as in the areas of virtual general meetings of shareholders and the electronic exercising of voting rights, to expand the number of entrustments, as a cutting-edge stock transfer agency. 25
Slide 26: 2. Financial Forecast and Shareholder Return
2. Financial Forecast and Shareholder Return 26
Slide 27: Financial Forecast for FY2021 (As of February 4, 2021)
Financial Forecast for FY2021 (As of February 4, 2021) We are expecting that our SR business will show favorable expansion and that our PA and FA investment banking business will see more orders for large scale projects. FY2021 Forecast FY2020 Results Amount Change Change Amount Change (Millions of
Slide 28: Shareholder Return
Shareholder Return Including the interim dividend, the dividend for the full year is planned to be ¥85 per share (an increase of ¥15). Depending on the level of the stock price, we also plan to acquire treasury stock in a timely, appropriate, and flexible manner. Payout Dividend per Share Interim Ye
Slide 29: 3. Supplementary Information
3. Supplementary Information 29
Slide 30: Field of Power of Equity and Market Size
Field of Power of Equity and Market Size IR SR M&A (Investor Relations) (Shareholders Relations) (Mergers and Acquisitions) Investor Response Shareholder Response Corporate Acquisition IR market in the wide sense: SR market in the wide sense: M&A market: 600 billion yen 45 billion yen 100 billion ye
Slide 31: Total Shareholder Return (TSR)
Total Shareholder Return (TSR) Period March 31, 2020 January 31, 2021 1 Year 304.09% 330.23% 3 Years 673.90％ 1577.53％ 5 Years 1222.39％ 6276.28％ From Listing (March 17, 2011) 2820.25％ 13099.44％ *TSR: Calculated as capital gain + income gain assuming the income gain is reinvested and the value of the
Slide 32: (Reference) Net Sales by Business Segment for Nine Months of Fiscal 2021
(Reference) Net Sales by Business Segment for Nine months of Fiscal 2021 9M FY2021 9M FY2020 (Apr. 2020―Dec. 2020） (Apr. 2019―Dec. 2019) Amount Percent of Total YOY Change Amount (Millions of yen) (％) (％) (Millions of yen) IR・SR Consulting 5,543 92.3 22.8 4,515 Disclosure Consulting 341 5.7 −23.0 44
Slide 33: "Power of Equity" is a registered trademark of IR Japan
We, IR Japan, are a consulting firm that provides services with high additional value based on voting power, for the development of the capital market. “Power of Equity” is a registered trademark of IR Japan