M&a Capital Partners Co. Ltd. · TSE:6080
M&a Capital Partners — FY2024 Earnings Presentation
50 slides from M&a Capital Partners's earnings presentation, Oct 31, 2024
Slide 1: Presentation Materials for the Full Year 2024 Earnings Results
Presentation Materials for the Full Year 2024 Earnings Results Oct 31st, 2024 Financial Results for the Full Year of Fiscal Year ended September 30, 2024.｜ Copyright © 2024 M&A Capital Partners Co., Ltd. All rights reserved
Slide 2: Agenda
Agenda １ Full Year 2024 Earnings Results P3 ２ Company Profile and Strengths P15 ３ Industry Environment and Growth Strategies P32 ４ Topics P42 ５ Social Significance P46 1 Financial Results for the Full Year of Fiscal Year ended September 30, 2024.｜ Copyright © 2024 M&A Capital Partners Co., Ltd. All
Slide 3: Consolidated earnings results summary
Consolidated earnings results summary • The number of deals closed jumped 29.2% year over year to a record high. • Net sales and ordinary income fell YoY due to the aftermath of huge deals recorded in FY2023. • Leading indicators of contract liability and consultant hiring remain strong . Contract N
Slide 4: Agenda
Agenda １ Full Year 2024 Earnings Results P3 ２ Company Profile and Strengths P15 ３ Industry Environment and Growth Strategies P32 ４ Topics P42 ５ Social Significance P46 3 Financial Results for the Full Year of Fiscal Year ended September 30, 2024.｜ Copyright © 2024 M&A Capital Partners Co., Ltd. All
Slide 5: Non-consolidated full year of FY2024 earnings results
Non-consolidated full year of FY2024 earnings results • MACP recorded increased deals closed, while net sales and ordinary income decreased due to the aftermath of huge deals recorded in FY2023. • RECOF recorded increased deals closed and net sales after rejuvenating the workforce and revitalizing d
Slide 6: Consolidated changes in earnings
Consolidated changes in earnings Net sales and profit are generally in line with earnings forecast, albeit lower than the previous year ( unit： million yen) Forecast for the Progress for the full consolidated Full-year results full year（revised） year(revised) □ Cumulative net sales 19,166 19,305 99.
Slide 7: Condensed consolidated income statement of fiscal year 2024
Condensed consolidated income statement of fiscal year 2024 Earnings fell due to the aftermath of huge deals recorded in the previous year (Unit: Millions of yen, second line is composition ratio) FY2024 (consolidated) FY2023 (consolidated) YoY Main factors Change causing change ・Number of deals clo
Slide 8: Condensed consolidated balance sheets of fiscal year 2024
Condensed consolidated balance sheets of fiscal year 2024 Solid financial condition underpinned by stable shareholder’s equity ( Unit：Millions of yen; second line is composition ratio ) FY2023 FY2024（Consolidated） （Consolidated YoY Main factors causing ） Change change Current Assets 39,977 40,691 ＋7
Slide 9: Number of deals closed
Number of deals closed Number of deals closed +29.2% YoY, reaching a record high Number of deals closed (consolidated) cumulative number Full year of deals closed （件） forecast Full-year forecast Result Vs forecast Full-year result 240 Q4 220 199 221deals 220deals 100.5% 200 Q3 Full year, 180 172 171
Slide 10: Number of active deals (non-consolidated)
Number of active deals (non-consolidated) The number of active deals maintains a high level, reaching 525 (+25.9% YoY), securing sufficient large deals with high profitability Quarterly cumulative number of active deals (non-consolidated) ※simple average of the past four quarter including the curren
Slide 11: Contract Liability
Contract Liability • Contract liability remains strong, reaching ¥1,063 million（＋63.8％ YoY） • Numerous contracts closed in Q4 reduced the contract liability, but the progress of active contracts to higher stages helped sustain a high level. Quarterly cumulative amount of contract liability (Million
Slide 12: Number of consultants
Number of consultants • The record high of 214 consolidated consultants（+34 YoY）. • Hiring is progressing well for fiscal year ending in Sep 2025, to increase the number of consultants by 25% to 234 in MACP. • 44.7% of our hiring objectives met, encompassing both onboard and those with confirmed sta
Slide 13: Consolidated earnings forecast for the fiscal year ending in Sep. 2025
Consolidated earnings forecast for the fiscal year ending in Sep. 2025 • The increase in the number of active deals is expected to lead to record highs in the Earnings number of deals closed and net sales forecast • Increase of productivity anticipates a recovery in sales and profits Net Sales Ordin
Slide 14: Non-consolidated earnings forecast for the fiscal year ending in Sep. 2025
Non-consolidated earnings forecast for the fiscal year ending in Sep. 2025 Record high contract number, contract liability indicating record high number of deals to be closed s ●YoY change Background Net sales ¥21,408 million ＋23.9％ ⚫ Hiring of consultants is progressing well ⚫ Expand of large deals
Slide 15: Non-consolidated earnings forecast for the fiscal year ending in Sep. 2025 (RECOF)
Non-consolidated earnings forecast for the fiscal year ending in Sep. 2025 Net sales and profits are expected to bounce back due to increase of productivity after years reform and expertise sharing from MACP ●YoY change Background Net sales 1,510 million ＋19.3％ ⚫ Team rejuvenation and strengthened h
Slide 16: Agenda
Agenda １ Full Year 2024 Earnings Results P3 ２ Company Profile and Strengths P15 ３ Industry Environment and Growth Strategies P32 ４ Topics P42 ５ Social Significance P46 15 Financial Results for the Full Year of Fiscal Year ended September 30, 2024.｜ Copyright © 2024 M&A Capital Partners Co., Ltd. All
Slide 17: Company overview
Company overview Trade Name M&A Capital Partners Co., Ltd. Listed Market Tokyo Stock Exchange Prime Market (Ticker number: 6080) Head Office Location 36F, Yaesu Central Tower, Tokyo Midtown Yaesu, Yaesu 2-2-1, Chuo-ku, Tokyo Business M&A-related services Representative Satoru Nakamura, President and
Slide 18: History
History Company ■ Company founded in Shinjuku-ku, Tokyo, for the purpose of carrying out M&A intermediary business October 2005 established February 2007 Relocation due to growth ■ Head office relocated to Kojimachi 3-chome, Chiyoda-ku, Tokyo Listed on November 2013 TSE Mothers ■ Listed on the Tokyo
Slide 19: Brand
Brand Establishing the “best brand” with a dominant presence in the M&A intermediary industry *The above is sourced from our website. 18 Financial Results for the Full Year of Fiscal Year ended September 30, 2024.｜ Copyright © 2024 M&A Capital Partners Co., Ltd. All rights reserved
Slide 20: KPI highlights
KPI highlights We have maintained unparalleled productivity and quality in the industry, consistently exceeding benchmarks and setting new standards for excellence Social Contribution Productivity Average transfer Net sales per consultant Ordinary income per price of closed ¥1.9 billion consultant d
Slide 21: Position
Position We rank No.1 for the second consecutive year as the only M&A specialized company in LSEG Japan M&A Market League Table in terms of number of domestic deals completed What is a league table? The League Table refers to the ranking system of financial institutions based on their performance in
Slide 22: The MACP Group's business portfolio
The MACP Group’s business portfolio Offering tailored M&A advisory solutions customized for every client Top-level professional group in Japan Client Large corporations Business succession＆ Medium-sized enterprises Industry restructuring, Cross- border, Growth strategy support Business succession, F
Slide 23: Our business
Our business Services M&A-Related Services Characteristics We provide advisory services for M&A transactions, We offer and facilitate the implementation of M&A- maintaining an independent and impartial stance between focused solutions for business owners concerned about the seller and the buyer. suc
Slide 24: Our vision
Our philosophy Our vision We aspire to be the world’s leading investment bank, seeking maximum contributions to clients and striving for the happiness of all employees Our value 1 2 3 As one of the world's leading groups of Through work at a broader and higher level, We will continually move forward
Slide 25: Equity-based Lehman formula
Equity-based Lehman formula Since our founding, we have prioritized our clients’ needs by employing the Lehman formula based on the share value, achieving the lowest intermediary commission rate in the M&A intermediary industry The difference between total asset-based Lehman formula and equity-based
Slide 26: Fair and easy-to-start fee structure
Fair and easy-to-start fee structure Equity-based Lehman formula to both parties and no commencement fee since establishment The amounts receivable for seller decrease when one party is charged by different fee structure Same fee structure to both parties Peer MACP company Different fee structure to
Slide 27: Commission fee variance between the TSE prime listed companies
Commission fee variance between the 4 TSE prime listed companies Calculation given that total liability of ¥0.4 billion※ and share value of ¥0.5 billion ※Total liability: including interest-bearing debt, accounts payable and other unpaid debts Success fee from Success fee from Company name Other fee
Slide 28: Direct proposal business model
Direct proposal business model Strategic Power Source MACP’s strengths • Excellent consultant’s high proposal ability • Track Record of large deals (referred deals are usually Business model that relies on direct • Easy-to-start fair fee structure small-scale) proposal instead of referral • High pro
Slide 29: Large deals where M&A Capital Partners excels
Large deals where M&A Capital Partners excels We have the #1 track record in the M&A intermediary industry for large and challenging projects and have achieved an exceptional average share transfer value in the industry Handling difficult large deals 19.6% 40 large M&A deals Total number of 1 in 5 d
Slide 30: Compensation structure attracting the best talent in Japan
Compensation structure attracting the best talent in Japan and achieving outstanding productivity and quality • Top average salary among public listed companies for 10 consecutive years ※ • 13.9% of consultants have professional qualifications • Productivity indicators are also overwhelming in the i
Slide 31: Program for developing the world's best talents
Program for developing the world’s best talents We are continually improving our quality of service by pursuing further excellence In the litigious M&A industry, we only had 2 lawsuits in our group’s past 56 years’ business MACP’s training program Knowledge Test（Monthly） Update to the latest knowled
Slide 32: Corporate culture that has achieved unparalleled growth
Corporate culture that has achieved unparalleled growth in the M&A intermediary industry Individual growth underpins the growth of our organization as a whole. We emphasize teamwork, which is rooted in our management philosophy since our founding. Point 1 We value not only individual performance, bu
Slide 33: Agenda
Agenda １ Full Year 2024 Earnings Results P3 ２ Company Profile and Strengths P15 ３ Industry Environment and Growth Strategies P32 ４ Topics P42 ５ Social Significance P46 32 Financial Results for the Full Year of Fiscal Year ended September 30, 2024.｜ Copyright © 2024 M&A Capital Partners Co., Ltd. All
Slide 34: M&A trends
M&A trends • The number of M&A in January-September 2024 reached 3,457, a record high with 34.3% value increased YoY • Deals number increased YoY in all of IN-IN,IN-OUT,OUT-IN markets (Number of deals) Latest 2024 ■ OUT-IN Jan-Sep. M&A of Japanese companies by overseas companies ■ IN-OUT M&A of over
Slide 35: The status-quo of SMEs
The status-quo of SMEs • Shifts in the operating environment are leading to an increase in business closures and bankruptcies. • As the average age of company presidents rises, many organizations are struggling with succession planning Number of Suspensions, Closures and Dissolutions Number of Bankr
Slide 36: Market size of the business succession M&A
Market size of the business succession M&A Among SMEs, potential demands for business succession M&A is expected to continue rising, and we will continue to approach companies with business succession needs Targets for Business Succession M&A It is estimated that there are approximately 260,000 pote
Slide 37: Competitive environment
Competitive environment The M&A market has intensified further with the full-scale entry of major financial institutions, with 2,758 registered M&A advisors. The MACP Group’s share among the total completed deals is about 5% ※ ※ MACP Group’s 172 deals closed in the fiscal year ended September 2021,
Slide 38: Initiatives in the M&A intermediary industry
Initiatives in the M&A intermediary industry M&A Intermediaries Association, a self-regulatory organization of which MACP is a founding board member, is going to transform as the M&A Advisors Association • M&A Intermediaries Association was established in October 2021 to promote the sound developmen
Slide 39: The MACP Group's three-year medium-term plan
The MACP Group’s three-year medium-term plan The upcoming three-year plan specifies the target number of deals to close and the number of consultants to drive further growth from FY09/2025 to FY09/27 Number of deals closed Number of consultants Three-year plan(MACP) Three-year plan(RECOF) Three-year
Slide 40: MACP Group's growth Strategy
MACP Group’s growth Strategy We will leverage retained earnings and cash for strategies in M&A and capital alliances ・To further expand, grow, and strengthen the group’s existing business centered on M&A advisory (including business and capital alliances for acquiring functions and enhancing our abi
Slide 41: MACP Group growth strategy: world's leading investment bank
MACP Group growth strategy The world’s leading investment bank One of the world’s leading We aspire to be the world’s leading M&A groups investment bank Flagship group that supports the Japanese economy present Listed on Tokyo Listed on Tokyo Stock Exchange Stock Exchange First Section Mothers Becom
Slide 42: Shareholder returns
Shareholder returns We will maintain our dividend payments based on a policy that balances investment in future growth with fair returns for our shareholders Fundamental policy on the distribution of profits We aim to steadily increase the dividend per We provide stable, ongoing shareholder share th
Slide 43: Agenda
Agenda １ Full Year 2024 Earnings Results P3 ２ Company Profile and Strengths P15 ３ Industry Environment and Growth Strategies P32 ４ Topics P42 ５ Social Significance P46 42 Financial Results for the Full Year of Fiscal Year ended September 30, 2024.｜ Copyright © 2024 M&A Capital Partners Co., Ltd. All
Slide 44: Topic 1. IB coverage department newly established
Topic 1. IB coverage department newly established We established the IB Coverage Department, which specializes in M&A support for large companies to enhance MACP’s strength in securing large -scale deals Strengthen our commitment to fostering economic growth by supporting the development of publicly
Slide 45: Topic 2. New services and business alliance
Topic 2. New services and business alliance We will release our neutral M&A platform BMP-CORPORATE in November 2024, to promote the efficiency of matching between buyers and sellers and expand the pool of potential buyers Initiatives with excellent potential buyers to increase the success rate of In
Slide 46: Advertising and public relations activities
Advertising and public relations activities • In 2018, we began airing “lion president” television commercials, which have been at the center of our advertising and public relations activities • We continue to enjoy an overwhelming level of recognition as a leader in the M&A intermediary industry Pr
Slide 47: Agenda
Agenda １ Full Year 2024 Earnings Results P3 ２ Company Profile and Strengths P15 ３ Industry Environment and Growth Strategies P32 ４ Topics P42 ５ Social Significance P46 46 Financial Results for the Full Year of Fiscal Year ended September 30, 2024.｜ Copyright © 2024 M&A Capital Partners Co., Ltd. All
Slide 48: Sustainability
Sustainability At a meeting in November 2021, the Company’s Board of Directors established material ESG issues with a focus on SDGs We will foster a sustainable future by promoting the growth of the Japanese economy and addressing social issues. No poverty Industry, innovation, and infrastructure Go
Slide 49: ESG
ESG Through the M&A services business, we will continue to contribute to the realization of a sustainable society through ESG initiatives Our Approach to ESG • The sharp rise in suspensions and closures of SMEs in Japan is widely recognized as an important issue. • According to calculations made by
Slide 50: Handling of These Materials
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 time the materials were prepared, and they include inherent risk and uncertainty. Actual performance may differ from forecasts