Archived IR presentation for the Third Quarter of the Fiscal Year Ending September 30, 2025

Archived IR presentation for the Third Quarter of the Fiscal Year Ending September 30, 2025

M&A Capital Partners  Inc. posted an archive video of the IR presentation (for the fiscal year ended at September 30th 2025) held on August 5th 2025 as follows.

• ■ Click here for details on Q&A (all questions and answers)

• Regarding the quarterly performance, the third quarter saw an increase in both revenue and profit compared to the previous quarter and the same period last year, so I don’t feel the results were weak. However, given that contract liabilities have consistently exceeded 1 billion yen, I wonder if revenue could have been somewhat higher. What is your view on this?

  Because we handle many large-scale deals, revenue tends to fluctuate depending on the timing of deal closures. Although there was a surge in demand in December ahead of the implementation of the minimum tax system in January 2025, it was difficult to significantly accelerate M&A activity. As such, I believe the first and second quarters represented a transitional phase. Looking ahead to the fourth quarter, we remain confident, as the number of active deals is strong, and both the proportion of large-scale deals and the amount of contract liabilities are solid.
  Regarding the status of active deals, although we’ve seen a slight increase recently, the current level appears somewhat weaker compared to a year ago, when both deal closures and active deal volume were strong. As a hypothesis, could it be that consultants with two or more years of experience are focusing on existing engagements, while newer consultants are still ramping up and taking time to generate new opportunities?

  We apply extremely rigorous proprietary criteria when counting active deals—if progress stalls even briefly, the deal is excluded from the count. This naturally leads to some quarterly fluctuations. That said, we continue to see strong momentum in new deal acquisition. Since last year, we’ve adopted a policy of All-out Effort from Each Member, encouraging every individual consultant to fully commit to both new business development and deal execution. While the initial launch of this initiative generated tremendous momentum, the current pace reflects a more stabilized phase following that early surge.
  Are there any actions that can be taken or are being taken now in preparation for the first quarter (October to December) of the next fiscal year?

  As part of our ongoing efforts, we consistently operate with a clear focus on the entire process—from deal intake to rank-up and eventual closing. While these activities are not specifically targeted at the first quarter, a significant number of deals are already progressing through meetings and negotiations, and pricing discussions are underway. Once these deals are closed, they will contribute to first-quarter revenue; if the timing shifts, they will be reflected in the following quarter. Accordingly, we manage our operations with close attention to deal intake and rank-up status, while also monitoring individual activity levels to ensure consistent pipeline momentum.
  The proportion of foreign investors has been increasing, suggesting that the company's IR initiatives targeting institutional investors have been effective. However, the number of shareholders has declined by approximately 1,500 over the past six months, and the free float ratio has also decreased. Given this situation, what is your view on the ideal shareholder and capital structure going forward? In addition, what do you consider to be an appropriate market capitalization for the world's leading investment bank?

  As for our shareholder composition, we do not currently have a definitive policy in place and continue to discuss it internally. Recently, we disclosed that certain directors have sold shares with the intention of raising the free float ratio to 35% or higher, in anticipation of the upcoming revisions to the TOPIX index. We will continue working toward developing a clearer vision moving forward regarding our market capitalization.
  What was the market's perception of the share sale by directors announced on August 1, and were there any objectives other than ensuring continued inclusion in the TOPIX index?

  The sale was conducted in response to the TOPIX reconfiguration, as a measure to increase the free float ratio and maintain the company’s continued inclusion in the index. As of now, we have not received any notable inquiries from the market. We also recognize that the stock price movement has not shown significant deviation from the Nikkei 225, suggesting that the transaction has been received calmly.
  A high PBR (Price-to-Book Ratio) is predicated on investor confidence in a high-profitability and high-growth model. As part of your IR strategy, how do you disclose information and foster market understanding?

  We place strong emphasis on direct engagement with investors, and regularly share the feedback we receive with our Board of Directors. Guided by our vision of becoming the world’s leading investment bank, we aim to pursue a strategy that balances non-linear growth—driven by M&A-led expansion of our business portfolio and geographical footprint—with the enhancement of shareholder returns. Through ongoing communication, we actively explain this approach to investors and seek their understanding by responding to questions and feedback.
  While recruiting exceptional talent remains a key growth driver, analog sales methods have their limitations. Are there initiatives to scale the number of deals through AI and digital enablement?

  We have introduced an AI-powered automatic matching system and established a mechanism to minimize opportunity losses in matching—through matching conferences, strategic partnerships with banks, and regular email newsletters. Looking ahead, we will further strengthen our AI capabilities to support document preparation. The enhancement of our brand has enabled us to secure large-scale deals, and we remain committed to expanding into new domains. At this stage, we do not perceive any constraints in our talent base and believe there is ample room for continued growth.