results of operations for the second quarter of fiscal year ...27 metal product processing kansai...
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http://www.nihon-ma.co.jp/
東証1部 : 2127
本資料における業界の動向や分析、今後の計画、見通し等は、現在入手可能な情報による判断に基づいております。今後、将来の事業を取り巻く環境が大きく変動するリスクや不確実性が存在します。従いまして、今後の計画や見通しの実現を保証するものではありません。
http://www.nihon-ma.co.jp/
東証1部 : 2127
本資料における業界の動向や分析、今後の計画、見通し等は、現在入手可能な情報による判断に基づいております。今後、将来の事業を取り巻く環境が大きく変動するリスクや不確実性が存在します。従いまして、今後の計画や見通しの実現を保証するものではありません。
Results of Operations for the Second
Quarter of Fiscal Year Ending Mar 31, 2014 November 13, 2013
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 data available at the time of release. We make no guarantees regarding future plans or
forecasts since the operating environment is subject to risks and uncertainties, meaning it could change
substantially in the future.
TSE 1st section: 2127
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/ 1
Long-term profit growth can be expected.
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 company can efficiently obtain M&A-related information by drawing upon its M&A information network,* one of the largest in Japan.
* Through business alliances with 516 accounting firms, 285 regional financial institutions,
and other organizations throughout Japan (as of September 30, 2013)
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/ 2
137.2% of a year-ago level (1,517 million yen)
130.1% of the forecast released at start of period (1,600 million yen)
FY13
2Q Results YoY
FY13
Full-year forecast
FY12
2Q Results FY12
Full-year Results
Total % % Total % Total % Total %
Sales 4,152 100.0 127.1 7,850 100.0 3,268 100.0 7,214 100.0
(M&A sales) (4,073) (98.1) (3,196) (97.8) (7,064) (97.9)
cost of sales 1,301 31.3 1,162 35.6 2,487 34.5
(Referral fees and outsourcing expenses)
(441) (10.6) (487) (14.9) (891) (12.4)
(Personnel and transportation costs) (827) (19.9) (655) (20.1) (1,537) (21.3)
Gross profit 2,851 68.7 2,105 64.4 4,726 65.5
SGA expenses 769 18.5 588 18.0 1,321 18.3
Operating income 2,081 50.1 137.2 3,700 47.1 1,517 46.4 3,405 47.2
Non-operating income 5 0.1 16 0.5 32 0.4
Non-operating expenses 2 0.1 6 0.2 1 0.0
Ordinary income 2,085 50.2 136.5 3,700 47.1 1,527 46.7 3,437 47.6
Extraordinary gain - - - - - -
Extraordinary loss 21 0.5 4 0.1 4 0.1
Income before taxes for the quarter 2,063 49.7 1,523 46.6 3,432 47.6
corporate tax 834 20.1 598 18.3 1,358 18.8
Net income for the quarter 1,228 29.6 132.9 2,240 28.5 924 28.3 2,074 28.7
Achieved record operating income
Summary of Income Statement
(Million yen, percent,
cumulative base)
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/
FY 2010 FY 2011 FY 2012
(cumulative 2Q) FY 2012
FY 2013 (cumulative 2Q)
Total % Total % Y o Y Total % Total % Y o Y Total % Y o Y
Sales 5,008 100.0% 6,005 100.0% 119.9% 3,268 100.0% 7,214 100.0% 120.1% 4,152 100.0% 127.1%
Direct costs*1 572 11.4% 673 11.2% 117.6% 506 155% 950 13.2% 141.1% 473 11.4% 93.6%
Direct profit 4,435 88.6% 5,332 88.8% 120.2% 2,761 84.5% 6,264 86.8% 117.5% 3,678 88.6% 133.2%
M&A Sales 4,901 100.0% 5,877 100.0% 119.9% 3,196 100.0% 7,064 100.0% 120.2% 4,073 100.0% 127.4%
M&A cost of sales*2 550 11.2% 638 10.9% 116.1% 478 152% 891 12.6% 139.6% 441 10.8% 90.6%
M&A gross profit 4,351 88.8% 5,239 89.1% 120.4% 2,709 84.8% 6,172 87.4% 117.8% 3,632 89.2% 134.0%
Other sales 107 100.0% 127 100.0% 119.5% 71 100.0% 150 100.0% 117.7% 79 100.0% 110.9%
cost of other sales 22 21.1% 34 27.2% 153.9% 19 27.4% 58 38.8% 167.7% 32 41.6% 168.3%
Other gross profit 84 78.9% 93 72.8% 110.3% 51 72.6% 92 61.2% 99.0% 46 58.4% 89.3%
Non-allocable cost of sales*3
1,070 21.4% 1,343 22.4% 125.5% 655 20.1% 1,537 21.3% 114.4% 827 19.9% 126.1%
Gross profit 3,365 67.2% 3,988 66.4% 118.5% 2,105 64.4% 4,726 65.5% 118.5% 2,851 68.7% 135.4%
3
(¥mn)
Breakdown of consolidated sales into M&A sales and Other sales
(Reference) Sales and Profits by Business
*1 Direct cost includes M&A cost of sales (referral fees and outsourcing expenses) and cost of other sales
*2 M&A cost of sales consists of referral fee and outsourcing expense
*3 Non-allocable cost of sales includes personnel cost and transportation cost etc.
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/ 4
[Assets] End of
FY13 2Q
% change End of
FY12
I current assets 9,460 85.2 562 8,897
(cash and deposits) (7,118) (64.1) (785) (6,333)
(Other current assets) (2,341) (21.1) (-223) (2,564)
II Fixed assets 1,639 14.8 -26 1,666
Total assets 11,100 100.0 536 10,564
[Liabilities
and net assets]
End of
FY13 2Q %
change End of
FY12
I current liabilities 1,493 13.5 -325 1,818
II Fixed liabilities 404 3.6 24 380
Total liabilities 1,898 17.1 -301 2,199
(Interest bearing liabilities) (100) (0.9) (-) (100)
Net assets 9,202 82.9 837 8,364
(Retained earnings) (7,215) (65.0) (830) (6,385)
Total assets 11,100 100.0 536 10,564
Balance Sheet Summary
Maintaining a sound balance sheet => Enhancing returns to shareholders through dividend increase
(¥mn, %)
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/ 5
Average M&A sales per deal closed were strong
FY2011 FY2012 FY2013
1Q 2Q 3Q 4Q FY
Total 1Q 2Q 3Q 4Q
FY
Total 1Q 2Q
Total deals (individual) *1 39 55 48 52 194 48 52 58 49 207 43 58
cumulative total in the same fiscal year 39 94 142 194 - 48 100 158 207 - 43 101
Sell side 18 28 23 25 94 23 26 27 26 102 21 29
Buy side 20 26 23 25 94 25 26 31 23 105 22 28
Other deals closed (e.g., reorganization) 1 1 2 2 6 - - - - - - 1
M&A sales 1,122 1,794 1,385 1,575 5,877 1,153 2,043 2,079 1,787 7,064 1,992 2,080
M&A sales per deal *2 28.8 32.6 28.9 30.3 30.3 24.0 39.3 35.9 36.5 34.1 46.3 35.9
Total deals (transactions) *1 21 32 26 27 106 26 27 31 26 110 22 30
cumulative total in the same fiscal year 21 53 79 106 - 26 53 84 110 - 22 52
Number of Deals closed
* 1 Total deals (individual) is the number of sell-side deals added to the number of buy-side deals (based on contingent fees).
Total deals (transactions) is the total number of transactions.
* 2 M&A sales divided by the number of total deals, includes retainer fees
(Number of cases, ¥mn)
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/ 6
Sellers Buyers
Transaction scheme Business outline Offices Business outline Offices
1 System operation Kanto System operation Kansai Stock transfer
2 Food production Kansai Food production Kyushu, Okinawa Stock transfer
3 Logistics Kanto Logistics Hokkaido, Tohoku Stock transfer
4 Electric work Kanto Facility design and work Kanto Stock transfer
5 Web production Kansai Advertising agency Kanto Stock transfer
6 Printing Kanto Printing Kanto Stock transfer
7 Travel Kanto Education service Kanto Stock transfer
8 Senior citizen home Kanto Nursing facility Kanto Stock transfer
9 Transportation Kanto Harbor transportation Kanto Stock transfer
10 Auto parts manufacturing Koshinetsu Machinery and tool wholesaling Kansai Stock transfer
11 Electronic parts manufacturing Kyushu, Okinawa Telecommunication equipment manufacturing Kanto Stock transfer
12 Accounting office Tokai, Hokuriku Accounting office Kansai Business transfer
13 construction work Kyushu, Okinawa Real estate management Chugoku, Shikoku Stock transfer
14 Medical corporation Koshinetsu Medical corporation Kanto Equity interest transfer
15 Gas Hokkaido, Tohoku Gas Hokkaido, Tohoku Stock transfer
16 Transportation equipment manufacturing Hokkaido, Tohoku Facility work Hokkaido, Tohoku Stock transfer
17 Dispensing pharmacy Kansai Dispensing pharmacy Kansai Stock transfer
18 Apparel Kanto Mail-order business Kanto Stock transfer
19 Auto parts manufacturing Kanto Auto parts manufacturing Tokai, Hokuriku Stock transfer
20 Press processing Overseas Precision parts manufacturing Kanto Stock transfer
21 Medical corporation Kansai Medical and welfare services Tokai, Hokuriku Equity interest transfer
22 construction consulting Tokai, Hokuriku Civil engineering work Tokai, Hokuriku Stock transfer
23 Automobile maintenance Kansai Automobile retailing Chugoku, Shikoku Stock transfer
24 consumer good manufacturing Kanto Beauty care Kansai company split
25 Nursing Kansai Nursing Chugoku, Shikoku Stock transfer
26 Metal wholesaling Kanto Recycling Kanto Stock transfer
27 Metal product processing Kansai Machine parts manufacturing Kansai Stock transfer
28 Game production Kansai Book retailing Kanto Stock transfer
29 FA equipment manufacturing Kansai Metal processing machine manufacturing Tokai, Hokuriku company split
30 Textile processing Chugoku, Shikoku - - Stock swap
Introduction to Deals closed in 2Q
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/ 7
End of
March
2006
End of
March
2007
End of
March
2008
End of
March
2009
End of
March
2010
End of
March
2011
End of
March
2012
End of
March
2013
End of
September
2013
cost of
sales
consultants 32 38 49 63 71 74 87 95 108※c
Non-
consultants *a - 3 4 5 4 5 6 7 9
SGA
expenses
Non-
consultants 8 9 12 8 10 10 11 13 13
Total 40 50 65 76 85 89 104 115 130
Average number of consultants *b 27 35 43.5 56 67 72.5 80.5 91 -
The number of job offer recipients increased
steadily from October onwards
*a Non-consultants in the cost of sales are administrative staff in the sales division who formerly belonged to the administration office (used to be included in SGA expenses). *b Average number of consultants = (number of consultants at start of year + number at end of year) / 2 *c As of October 30, four mid-career hires had joined the company ,and separately four others accepted our job offers. * Seconded persons are not included in the number of staff shown above.
Employee Numbers (consolidated)
(No. of employees)
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/ 8
TOPICS(1) Stepping up the provision of our M&A transaction-related assistance to client firms operating in
an industry experiencing active realignment
An example of assistance by Nihon M&A center:
An M&A transaction between two listed companies resulting from industry realignment
(Left) Mr. Inao Tajiri, Representative Director,
Medical System Network co., Ltd.
(Center) Suguru Miyake, President, Nihon M&A center
(Right) Mr. Shigeki Ohno, Representative Director,
Total Medical Service co., Ltd.
A takeover bid of Total Medical Service co., Ltd. (JASDAQ and Fukuoka Stock Exchange) by Medical
System Network co., Ltd. (TSE 1st Section) that was announced on September 27, 2013
Total Medical Service co., Ltd. (Listed on JASDAQ and the Fukuoka
Stock Exchange)
Medical System Network co., Ltd. (Listed on the TSE 1st Section)
Industrial
sector Dispensing pharmacy (the third
largest in the Kyushu area)
Dispensing pharmacy (the sixth
largest in the country)
Region Fukuoka
Prefecture Hokkaido
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/
0
100
200
300
400
500
600
2010/9期 2011/9期 2012/9期 2013/9期
225 249
358
516
9
The number of our partner accounting offices (Executive Board Members of the Nihon
M&A Association) increased by 37.6% in six months
375 as of March 31, 2013 516 as of September 30, 2013
Newly graduated consultants who joined us in April have
been engaged in activities to develop information on
accounting firms
Historical numbers of our
partner accounting offices
Membership grew by more
than 140 in six months
2010/9 2011/9 2012/9 2013/9
Initiative to Revitalize the Network of Accounting Firms
TOPICS(2)
• Nihon M&A Association is an organization established for Nihon M&A center Inc. and tax accountants and CPA offices
to collaborate with the aim of facilitating the spread of amicable M&A of small- and medium-sized companies.
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/ 10
TOPICS(3)
Collaboration with Development Bank of Japan (DBJ)
Step up our business platform by newly adding Development Bank of Japan (DBJ) to the
shareholders’ list of Japan Private Equity co., Ltd. (our equity-method affiliate engaging in MBO fund
investment business), and aim to further expand MBO fund investment operations
Nihon M&A center and DBJ are also considering collaborations with each other in the M&A support
business in the coming years (in overseas market, in particular)
Shareholders of Japan
Private Equity
Previous equity
interest ratio
Post-capital policy
implementation
equity interest ratio
Nihon M&A center Inc. 46.6% 36.1%
DBJ - 35.6%
Japan Asia Investment co., Ltd. 46.0% 20.8%
Treasury stock 6.5% 6.5%
Directors 0.9% 0.9%
100.0% 100.0%
A business succession fund worth a total of 3 billion yen is to be established by Japan Private Equity
co., Ltd., and the fund is planned to be increased to a total of 5 billion yen as Bank of Kyoto, Juroku
Bank, Nihon M&A center, DBJ and Sumitomo Mitsui Banking Corporation have decided to take
equity participation in the fund (the names are shown in order of the Japanese syllabary)
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/
4,009
3,655
5,008
6,005
7,214
4,152
3,820
4,400
4,800 5,280
6,500
7,850
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
09/3 10/3 11/3 12/3 13/3 14/3
実績
当初予想
1,651
1,376
2,171
2,834
3,437
2,085
1,650
1,800
2,000
2,200
3,000
3,700
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
09/3 10/3 11/3 12/3 13/3 14/3
実績
当初予想
11
(2Q cumulative,
actual)
(2Q cumulative,
actual)
(Full year forecast) (Full year forecast)
Trends of Long-term Results
Forecasting the posting of a record profit in FY2013
(the fourth consecutive fiscal year this will have occurred)
changes in Sales (¥mn) changes in Ordinary Income (¥mn)
Results
Original forecast
Results
Original forecast
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/ 12
12.5
25.0
25.0 25.0
32.5
42.5
55.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
07/3 08/3 09/3 10/3 11/3 12/3 13/3
3,205
3,886
4,440
4,940
5,764
6,932
8,364
2,000
3,000
4,000
5,000
6,000
7,000
8,000
07/3 08/3 09/3 10/3 11/3 12/3 13/3
Financial conditions and Dividend Increase
Improving financial strength continuously enhancing returns to
shareholders through dividend increase
changes in net assets changes in annual dividend per share
* Actual changes after factoring in the 200-for-1 share split on April 1, 2012 ¥mn
Net assets
Annual dividend per share
* Including commemorative dividend
yen
(c) Nihon M&A center Inc. http://www.nihon-ma.co.jp/ 13
25
30
35
50
60
12.5 15
17.5
25
30
¥0.0
¥10.0
¥20.0
¥30.0
¥40.0
¥50.0
¥60.0
FY2009 FY2010 FY2011 FY2012 FY2013
FYE dividend (results)
Interim dividend (results)
Original forecast for FYEannual dividend
Original forecast for interim dividend
Dividend growth is expected to continue on the back of strong business results
25
32.5
42.5
Original forecasts Results Actual payout ratio Amount
Dividend breakdown
Amount Dividend
breakdown
FY2013 ¥60 Interim ¥30 FYE ¥30
- - 35.7%
(forecast)
FY2012 ¥50 Interim ¥25 FYE ¥25
¥55 Interim ¥25
FYE ¥30 35.3%
FY2011 ¥35 Interim
¥17.5 FYE ¥17.5
¥42.5 Interim ¥17.5
FYE ¥25 35.2%
FY2010 ¥30 Interim ¥15
FYE ¥15 ¥32.5
Interim ¥15 FYE ¥17.5
36.1%
FY2009 ¥25 Interim
¥12.5 FYE ¥12.5
¥25 Interim ¥12.5
FYE ¥12.5 41.8%
55
Forecast of Dividend
Trends in dividend per share (after factoring in the 200-for-1 share split)
Annual dividend (results)
Unit: yen
(Forecasts only)
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