Nihon M&A Center Holdings Inc. · TSE:2127
Nihon M&A Center — Q1 FY2015 Earnings Presentation
32 slides from Nihon M&A Center's earnings presentation, Aug 11, 2015
Slide 1: Results of Operations for the First Quarter of the Fiscal Year Ending Mar 31, 2016
Results of Operations for the First Quarter of the Fiscal Year Ending Mar 31, 2016 August 11, 2015 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: 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 3: 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 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 First Quarter of FY 2015 increased 57.9% YoY FY2015 YoY FY2015 FY2014 FY2014 (Million yen, percent) (1Q Results) (Full-year Forecast) (1Q Results) (Full-year Results) Total % % Total % Total % Total % Sales 3,466 100.0 142.3 13,300 100.0 2,435 100.0 12,
Slide 6: Changes in Quarterly Results of Operating Income
Changes in Quarterly Results of Operating Income Operating income growing steadily, reached record high for first quarter Changes in quarterly results Progress compared to operating of operating income results forecast for first half (Unit: ¥mn) (Unit: ¥mn) 7,000 Operating 当第1四半期 income for 1Q of の業
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 (1Q) (1Q) Total % Total % YoY Total % Total % YoY Total % YoY Sales 7,214 100.0% 10,547 100.0% 146.2% 2,435 100.0% 12,227 100.0% 115.9% 3,466 100
Slide 8: Balance Sheet Summary
Balance Sheet Summary Maintaining a sound balance sheet (yen, mn, %) Assets End of 1Q End of FY2015 % Change FY2014 I Current assets 8,213 50.5 -511 8,725 (Cash and deposits) (5,146) (31.6) (-889) (6,036) (Other current assets) (3,066) (18.9) (377) (2,689) II Fixed assets *8,053 49.5 27 *8,025 *Long
Slide 9: Number of Deals Closed
Number of Deals Closed Number of deals closed increased by 66% YoY (from 65 to 108) and reached a quarterly record high (Number of cases, yen, mn) FY2012 FY2013 FY2014 FY2015 Cumu- FY FY 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q lative 1Q Total Total total Total deals (individual) *1 207 43 58 75 80 256 65 85 101 87
Slide 10: Number of deals closed for 1Q (Apr. – Jun.) 1/2
Number of deals closed for 1Q (Apr. – Jun.) 1/2 Number of deals closed for 1Q (108 cases) reached a quarterly record high Sellers Buyers Transaction scheme Business outline Region Business outline Region 1 Food manufacturing Kansai Food manufacturing Kansai Stock transfer 2 Paper product manufacturi
Slide 11: Number of deals closed for 1Q (Apr. – Jun.) 2/2
Number of deals closed for 1Q (Apr. – Jun.) 2/2 (cont’d from previous page) 26 Dry cleaning services Hokkaido, Tohoku Linen supply services Kansai Stock transfer 27 Wedding hall operation Tokai, Hokuriku Wedding hall services Kanto Stock transfer 28 Printing Hokkaido, Tohoku Cosmetics retailing Kant
Slide 12: Employee Numbers
Employee Numbers Number of consultants increased by 18 compared to the end of FY2014 (from 146 to 164). The Company will continue to actively hire mid-career consultants in FY 2015. (No. of employees) End of End of End of End of End of End of End of FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 June 201
Slide 13: TOPICS(1)
TOPICS(1) Third Bank of the Year Awards Ceremony held Attended by 100 people from 40 regional banks Information on status of activities of each bank was shared by participating banks to promote more proactive activities Award-winning bank in Award name The Company gives awards once a year to third a
Slide 14: TOPICS(2)
TOPICS(2) From June onwards: M&A seminar for managers Record high number of applicants (approx. 2,800) Needs for M&A continue to be strong as solution to issue of succession Seminar in Yamagata (July 1) Seminar in Tokyo (June 12) Seminar in Kanazawa (June 18) http://www.nihon-ma.co.jp/ (ｃ) Nihon M&A
Slide 15: (Reference) Activities in Kyushu
(Reference) Activities in Kyushu July: Company held M&A seminars for Kyushu managers in 8 cities (7 prefectures) Approx.1,500 applicants Over 100 participants at each venue The Company has received many requests for business expansion into the Kyushu area from business alliances, such as regional f
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 market is forecast to grow considerably as the issue of business succession becomes more serious in Japan. The compan
Slide 19: Corporate Profile
Corporate Profile (as of June 30, 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, etc. C
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 606 nationwide About 606 nationwide Nihon M&A Center Info Regional financial Info Info Regional financial Info institutions institutions About 29
Slide 22: TOPICS (1) Organizational Change
TOPICS (1) Organizational Change 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 an
Slide 23: Largest M&A Network in Japan
Largest M&A Network in Japan Hokkaido, Tohoku M&A Network covers the entire nation. Regional financial institutions Accounting firms 46 (Executive members) 56 Qualified professionals (Information members) • Regional financial 154 Institutions 293 Kansai • Accounting firms 606 Regional financial (Inc
Slide 24: Position of the Company
Position of the Company Size of deal (small) Difficulties in establishing networks with other firms Small-and medium-sized Nihon M&A M&A boutique Center firms × Area- and industrial sector- × × Nationwide and all industrial sectors dedicated type service type Regional financial M&A institutions bout
Slide 25: Potential Size of Business Succession M&A Market
Potential Size of Business Succession M&A Market We close more than 150 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 26: 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 27: 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 28: Initiatives to Revitalize the Network
Initiatives to Revitalize the Network 606 regional M&A centers "Information Program for Qualified Professionals" Activities to support robust • Mail magazine available • Introductory fees paid M&A information network • Publication of official bulletin • International M&A meetings • Various support s
Slide 29: 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 30: 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 31: Shareholders
Shareholders Trend of distribution by category of shareholder: The percentage held by foreign corporations stands at about 39% September 30, 2014 March 31, 2015 その他の Other 金融商品 Financial その他のOther Financial 金融商品 Instruments 法人等, 3% 3% Corporations, 取引業者, Instruments Corporations, 法人等, 3% 3% 取引業者, De
Slide 32: 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