Archived IR presentation for the First Quarter of the Fiscal Year Ending September 30, 2026

As you pointed out, the number of active deals is the metric we monitor most closely, and we are internally discussing various improvement measures.
At present, as reflected in the contract liabilities, a significant portion of our resources is being allocated to closing existing deals. However, unless we continue to secure new mandates, future performance will be affected. We are therefore reinforcing our internal KPIs and related initiatives.
Our matching capability has also improved significantly. Our team now increasingly takes on mandates with confidence that they can be closed. If a deal does not close, no fee is generated and costs cannot be recovered, resulting in no revenue contribution. Along with the enhanced internal matching capability, cooperation with BMP (Buyer Matching Platform) partners has also become more active. We encourage the team to take on new mandates more aggressively by sharing examples of deals that initially seemed unlikely to close but ultimately did.
As for the current number of active deals, I agree that the situation is not yet at a satisfactory level, and we will continue working on improvements.

Since the team at RECOF is still small, we do not expect dramatic changes quarter by quarter, but rather gradual improvement over time.
The biggest challenge historically has been the overhaul of RECOF’s bonus structure following its integration with MACP in 2016. RECOF originally had a seniority-based bonus system, under which senior members were highly compensated while younger members saw little salary growth even if they performed well—very different from MACP. We shifted to a system in which part of the profit is allocated to bonuses, allowing young performers to be properly rewarded and adjusting senior compensation downward if performance is insufficient.
This transition led to some turnover and difficulties along the way. Recently, however, many senior members have retired due to age, leaving only high-performing senior professionals. Under the leadership of the current CEO Kodera (38 years old), the overall organization has become significantly younger, which we believe is a major positive factor.
RECOF’s biggest challenge now is simply increasing headcount.
The brand and recognition are strong, and RECOF conducts study sessions, meetings, tests, and role-plays jointly with MACP. If we successfully hire strong talent who can carry RECOF forward in the next 5-10 years, the business will continue to recover steadily.

Recruitment is conducted jointly with MACP.
The final interview and dinner interview are conducted by President Nakamura. While RECOF has a stronger desire to increase headcount, candidates are screened as rigorously as they are at MACP.

Candidates interested in RECOF are often attracted to characteristics that differ from MACP. While MACP has a strong intermediary focus, RECOF handles many specialized deals such as FA engagements, carve-outs at listed companies, and Japan-Vietnam cross-border transactions. These tend to appeal to candidates seeking such opportunities.
However, since we have adopted a more performance-oriented compensation philosophy similar to MACP, raising average compensation to MACP levels will require improving productivity and performance. For that reason, expanding the team remains essential.

The IB Coverage Department is extremely busy. Last year, we served as the buy-side advisor for a TOB conducted by a Tokyo Stock Exchange Prime-listed company with a market capitalization of just under ¥40 billion. It is rare for MACP to handle buy-side TOB advisory, and the department’s high level of expertise is a major strength.
The team includes the department head, members with M&A experience in London, former IB coverage professionals from major securities firms, and certified public accountants, creating a highly specialized unit.
We also collaborate with the Corporate Advisory Department, a team of accountants and lawyers specializing in large-scale deals. Its strong compatibility with the IB Coverage Department has significantly broadened our ability to propose solutions for listed company deals, carve-outs, and exit transactions.
Leveraging the Corporate Information Department’s relationships, we are now able to make proposals from new angles, and both departments are working very actively together.

We receive many IR questions regarding our equity ratio. Looking ahead, we aim to grow further and plan to expand through M&A.
When we brought RECOF into the group, our net assets were ¥4.3 billion, yet the transaction required ¥3.5 billion in cash. Executing it required a major decision. Although performance has not fully met expectations, the branding and recognition benefits have been significant.
To maintain our ability to pursue large transactions like Houlihan Lokey’s acquisition of GCA, we believe it is essential to maintain a sufficiently strong cash position.
We also receive frequent questions about ROE, which we aim to improve by increasing operating profit.
Regarding shareholder returns, we previously maintained a dividend payout ratio of 20%, but have since raised it to 30%. We continue to discuss this internally.