M&a Capital Partners Co. Ltd. · TSE:6080

M&a Capital Partners — FY2016 Earnings Presentation

42 slides from M&a Capital Partners's earnings presentation, Nov 7, 2016

Slide 1: Presentation Materials for the Earnings Briefing for the Year Ended September 2016
M&A Capital Partners Co., Ltd. Presentation Materials for the Earnings Briefing for the Year Ended September 2016 Aiming to be the world's leading investment bank seeking maximum contributions to clients and the happiness of all employees November 7, 2016
Slide 2: Table of Contents
Table of Contents Company Overview and Strengths of the I ・・・ 2 Company II Business Environment ・・・ 8 III Results for the Year Ended September 2016 ・・・ 12 Merger and Forecast for the Year Ending IV ・・・ 20 September 2017 Growth Strategy V ・・・ 33 Copyright © M&A Capital Partners Co.,Ltd. All rights re
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 intermediary business Content Representative Satoru Nakamura, President and Represe
Slide 5: Business Content
Business Content Business Content M&A (corporate mergers, acquisitions, capital tie-ups, etc.) mediation is 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
Slide 6: 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 master agreement Expenses Required in the Consideration Phase M&A int
Slide 7: 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 8: 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. Cumulative Number of Deals Made 240 226 deal
Slide 10: Business Environment: Aging company 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 60 5.5% 59.2 59 58.4 5.0% 58 57 56.6 4.5% 4.58% 56 Successor No successo
Slide 11: 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) Reason for Lack of Progress in Planning of Lack of Plan for Awareness and Planning of Business Succession Business Succession Highest priori
Slide 12: 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 It is estimated that the targets for business succession Approx. 2,480,000 companies M&A number around 210,000 President aged 60 or more Our company handles 58 deals per year and e
Slide 14: Number of Deals Made
Number of Deals Made Forecast for the year Forecast difference Result for the year （revised） (revised) Number of deals 58 56 103.6％ Number of Deals Made 60 58件 Forecast for the year 55 56 - +31.8% year-on-year 50 deals 45 44 deals - Achieved record highest 40 [As of 3Q] number of deals 35 deals 35 4
Slide 15: Earnings Highlights
Earnings Highlights Earnings for the Year Ended September 2016 Net sales 3,755 million yen (+31.9% year-on-year) Ordinary income 1,860 million yen (+22.0% year-on-year) Number of deals 58 deals (+31.8% year-on-year) Number of consultants 42 (+10 year-on-year) - Net sales and ordinary income both exc
Slide 16: Changes in Earnings in Relation to the Initial Earnings Forecast
Changes in Earnings in Relation to the Initial Earnings Forecast - Net sales and ordinary income have both exceeded initial forecasts for 3 consecutive fiscal years since the company was listed Net sales Ordinary income 4,000 2,000 Units: millions of yen 3,755 Units: millions of yen 1,860 3,600 期初予想
Slide 17: Changes in Earnings
Changes in Earnings Results for the year Forecast for the year Forecast difference Units: Millions of yen (revised) (revised) Net sales 3,755 3,654 102.8% Ordinary income 1,860 1,819 102.3% Net sales Ordinary income 4,000 Units: Millions of yen 2,000 Units: Millions of yen 1,860 3,755 通期予想（修正後） Fore
Slide 18: Factors Causing Changes in Ordinary Income
Factors Causing Changes in Ordinary Income Units: Millions of yen Ordinary income ＋335 million yen (+22.0% year-on-year) Decreased temporary Increased expenses for directors' Increased market changes compensations gross profit Increased Increased 26 133 rents depreciation Increasede advertising Othe
Slide 19: Overview of Statements of Income
Overview of Statements of Income (Units: millions of yen, second line is composition ratio) Year Ended Year Ended September 2016 Forecast for the September Year-on-year Year Ending 2015 Change Overview of Performance September 2017  Number of deals grew strongly Net sales 2,847 3,755 +31.9%  Incre
Slide 20: Overview of Balance Sheets
Overview of Balance Sheets (Units: millions of yen, second line is composition ratio) September 30, September 30, 2016 2015 Change Main Factors Causing Change  Cash and deposits -841 (transfer of time Current assets 4,223 3,400 -823 deposits to long-term time deposits, (94.8%) (59.2%) payment of ye
Slide 22: Overview of the Merger
Overview of the Merger Improvement of matching customer needs and creation of a system able to provide high added value to a wide range of customers  Acquisition of shares of RECOF Corporation (RECOF) and subscription of rights Structure issue for capital increase  Acquisition of shares of RECOF D
Slide 23: Overview and History of the Target Companies
Overview and History of the Target Companies [Overview] Company name : RECOF DATA Corporation Company name : RECOF Corporation Established : April 1, 2008 Established : December 10, 1987 Address : 4-1-1 Kojimachi, Chiyoda-ku, Tokyo Address : 4-1-1 Kojimachi, Chiyoda-ku, Tokyo Representative : Toshif
Slide 24: Background and Goals of the Merger
Background and Goals of the Merger Background of the Merger Customer Trends Business Environment Expansion of customer base and diversification of Intensification of competition and diversification of needs services  Expansion of M&A services for small and medium companies with business succession
Slide 25: 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 26: (Planned) Management Structure of the Company after the Merger
(Planned) Management Structure of the Company after the Merger Position Name Current position President and Satoru President and Representative Director of M&A Capital Representative Nakamura Partners Director Director Yozo Sogame Director and Manager of Corporate Information Division No.1 of M&A Ca
Slide 27: Organization and Coordination between the Two Companies
26 Administration Division Copyright © M&A Capital Partners Co.,Ltd. All rights reserved. Advisory Cross-border Financial institution network Chairman Growth strategy and restructuring President support Industry reorganization Coordination [RECOF] Business succession Interaction between the two comp
Slide 28: Synergy Effects
Synergy Effects POINT 1 Strong business synergies in domestic M&A POINT 2 Expansion of business areas and enhancement of service menu POINT 3 Enhancement of cross-border (overseas) M&A services POINT 4 Improvement of recognition and brand value Copyright © M&A Capital Partners Co.,Ltd. All rights re
Slide 29: Strong business synergies in domestic M&A
Synergy Effects 1. Strong business synergies in domestic M&A  Relationship complementing each other’s strengths  Sharing information on deals enables deals to be closed more quickly and more efficiently  Both companies will accelerate growth by strengthening the business succession market ① Custo
Slide 30: Expansion of business areas and enhancement of service menu
Synergy Effects 2. Expansion of business areas and enhancement of service menu Holding Legal company liquidation establishment Industry Corporate revival reorganization Joint venture Business establishment integration [Number of reorganization deals] [Number of business succession M&A deals] PMI Rec
Slide 31: Enhancement of cross-border (overseas) M&A services
Synergy Effects 3. Enhancement of cross-border (overseas) M&A services  Utilization of RECOF’s know-how in cross-border deals  Support for companies expanding primarily into Asia  Expansion of field from Japan to Asia Companies expanding into Asia Recent numbers of cross-border deals YE Mar '14 2
Slide 32: Improvement of recognition and brand value
Synergy Effects 4. Improvement of recognition and brand value  Credit strength as a company listed on the first section of the Tokyo Stock Exchange  Merging of brand with RECOF’s history in the M&A industry (29 years since founding)  Quality and quantity of domestic M&A database established by RE
Slide 33: Consolidated Earnings Forecast for the Year Ending September 2017
Earnings Forecast Consolidated Earnings Forecast for the Year Ending September 2017 Net sales 5,941million yen （ - % year-on-year） Ordinary income 2,123 million yen （ - % year-on-year） Profit attributable to owners of parent 1,506 million yen （ - % year-on-year） Number of deals 86 （ - % year-on-year
Slide 35: Growth Strategy: Policies & Initiatives
Growth Strategy <Policies & Initiatives> - Increase number of deals made, maintaining an average increase of 20% per year - Continue hiring consultants, maintaining an average increase of 25% per year - Increase and cultivate target industries for M&A intermediary business - Strengthening of reactio
Slide 36: Three-year Plan for Number of Deals
Three-year Plan for Number of Deals (Non-consolidated) Three-year Plan for Number of Deals (Year Ending September 2017 to Year Ending September 2019) 100 95 New Three-year Plan 90 85 Initial Three-year Plan [Number of Deals] 80 75 Average increase of 20% 70 65 per year 60 will be maintained. 55 50 4
Slide 37: Three-year Plan for Number of Consultants
Three-year Plan for Number of Consultants (Non- consolidated) Three-year Plan for Number of Consultants (Year Ending September 2017 to Year Ending September 2019) 80 75 現３か年計画 New Three-year Plan 70 期初３か年計画 Initial Three-year Plan [Number of Consultants] 65 Average increase of 25% 60 55 per year 50
Slide 38: Strengthening of Reactionary Sales
Strengthening of Reactionary Sales <Policies & Initiatives> - Continue to enhance large-scale M&A seminars held Year ended Future September 2016 Number 12 per year Continue to enhance seminars held held as with previous year Tokyo,Osaka, Continue to increase seminars Areas held Nagoya,Fukuoka in Tok
Slide 39: Seminars Held in the Year Ended September 2016
Topics on the Company’s Reactionary Initiatives Seminars Held in the Year Ended September 2016 In the year ended September 2016, we held twelve large-scale M&A seminars in Tokyo, Osaka, Nagoya, Fukuoka, and Sendai. Date Held Type Seminar Title Applicants October 20, 2015 M&A Seminar Toyo Keizai Foru
Slide 40: Seminars Scheduled for First Quarter of Year Ending September 2017
Topics on the Company’s Reactionary Initiatives Seminars Scheduled to be Held in the First Quarter of the Year Ending September 2017 During the first quarter of the year ending September 2017, a total of four large-scale seminars are scheduled to be held in Osaka, Tokyo, Nagoya and Fukuoka. <Large-S
Slide 41: 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 42: 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

M&A Capital Partners — FY2016 Earnings Presentation on 6ix

M&a Capital Partners — FY2016 Earnings Presentation

Slide 1: Presentation Materials for the Earnings Briefing for the Year Ended September 2016

Slide 2: Table of Contents

Slide 3: Company Overview and Strengths of the Company

Slide 4: Company Overview

Slide 5: Business Content

Slide 6: The Company's Strengths (1): Fee structure convincing for clients

Slide 7: The Company's Strengths (2): Fee structure convincing for clients

Slide 8: The Company's Strengths: Stable Results Making Deals

Slide 9: Business Environment

Slide 10: Business Environment: Aging company presidents and lack of successors

Slide 11: Awareness of business succession

Slide 12: Scale of the Business Succession M&A Market

Slide 13: Results for the Year Ended September 2016

Slide 14: Number of Deals Made

Slide 15: Earnings Highlights

Slide 16: Changes in Earnings in Relation to the Initial Earnings Forecast

Slide 17: Changes in Earnings

Slide 18: Factors Causing Changes in Ordinary Income

Slide 19: Overview of Statements of Income

Slide 20: Overview of Balance Sheets

Slide 21: Merger and Forecast for the Year Ending September 2017

Slide 22: Overview of the Merger

Slide 23: Overview and History of the Target Companies

Slide 24: Background and Goals of the Merger

Slide 25: We aim to be the world's leading investment bank

Slide 26: (Planned) Management Structure of the Company after the Merger

Slide 27: Organization and Coordination between the Two Companies

Slide 28: Synergy Effects

Slide 29: Strong business synergies in domestic M&A

Slide 30: Expansion of business areas and enhancement of service menu

Slide 31: Enhancement of cross-border (overseas) M&A services

Slide 32: Improvement of recognition and brand value

Slide 33: Consolidated Earnings Forecast for the Year Ending September 2017

Slide 34: Growth Strategy

Slide 35: Growth Strategy: Policies & Initiatives

Slide 36: Three-year Plan for Number of Deals

Slide 37: Three-year Plan for Number of Consultants

Slide 38: Strengthening of Reactionary Sales

Slide 39: Seminars Held in the Year Ended September 2016

Slide 40: Seminars Scheduled for First Quarter of Year Ending September 2017

Slide 41: Image of Group Growth

Slide 42: Handling of These Materials